nil confidence in the ceo, page-14

Good evening Chef747,

Could you please let us know what the sale price would be on those 747s (US$20m each?)and what the purchase price is for a new B777ER ($US246m each?) plus all the extra costs that go with a new aircraft type?

So how many hundreds of millions of dollars is the gap between the two? Where is that extra capital going to come from? So you want Qantas to invest more capital into a loss making business?

Any rational business does not increase the amount of capital it allocates to a loss making business.

Even if Qantas did take the irrational path of allocating more capital to Qantas International, how long will it take to replace its fleet of 747's with 777ER's? How many years will it take?

So what aircraft orders does Qantas cancel to make room for the 777ER? It only has so much capital to invest in new aircraft so it it orders the 777ER it has to cancel other new aircraft orders.

Once if finally did get its fleet of 777ER's, are they really required when the 787 arrives? If not then that does not give Qantas very long to get a return on a multi-billion dollar investment in the 777ER.

The "777ER at Qantas" horse has long bolted.