Qantas cut procurement spend after low demand growth

Qantas has recently announced plans to reduce plane deliveries and slash spending by $700 million due to low demand growth.

The airline is cutting capital expenditure and cancelling or deferring orders for 12 narrow-body jets as it reduces its capacity growth for 2011-12 from 8 per cent to 5.5 per cent.

The airline will cut capital expenditure by $100 million this financial year and $300m in 2011-12, with an additional $300 million expected to flow from reduced leasing commitments.

It has cancelled or deferred delivery of three aircraft this financial year and will reduce deliveries from 43 to 34 next year.

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