Qantas may need to hold Dreamliner plans to regain credit status
Sydney
QANTAS Airways Ltd is on the verge of winning back the investment-grade credit status that it lost in 2013. Getting there may require putting off plans to buy Dreamliner aircraft.
Bonds sold by Australia's biggest carrier are at record-low yield premiums on speculation of cost cuts, cheaper fuel and a tie-up with Emirates Airline will deliver the strongest profits since 2008. Chief executive officer Alan Joyce may need to make more sacrifices, including delaying purchases of Boeing Co 787 Dreamliners a second time, National Australia Bank Ltd says.
"It all comes back to where Qantas's priorities lie," Michael Bush, head of credit research at NAB in Melbourne, said. Better cash flows are freeing up mon…
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