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Qantas mulls carbon output of next fleet

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Qantas is close to choosing which plane and engine suppliers will provide its next domestic fleet.

Airline boss Alan Joyce is in Boston this week talking to manufacturers about the needs of the carrier for the next two decades.

He is discussing plans for more than 100 planes with Airbus, Boeing, Embraer and engine makers.

Mr Joyce said new aircraft could improve trip cost and efficiency and reduce carbon emissions by up to 15 per cent.

The company said sustainability was among criteria including safety, reliability and performance, and commercial terms.

Boeing may have an advantage as the incumbent supplier. Its 737-800s and 717s make up most of the domestic fleet.

Qantas planes used for domestic flights are more narrow and have a single aisle among passengers when compared to international craft.

The planes being considered include the Airbus A320neo range and Boeing 737 MAX range. The group is also considering the smaller Airbus A220 and Embraer E-Jet E2 range.

Qantas payments would start next financial year and be spread over 10 years.

Mr Joyce acknowledged many airlines were unable to afford new planes after travel demand dropped during the pandemic.

"We still have our own (budget) repair work to do, but we know travel demand will rebound quickly and right now we're in a strong position to secure the best possible deal at very good prices," he said.

A decision on the tender for suppliers is expected by the end of the year.

All planes gained through the deal would be flying by 2034.

These aircraft will not be used for Jetstar flights. The carrier is taking delivery next year of 109 Airbus A320/A321 planes for Jetstar.

Qantas shares on the ASX were down 1.55 per cent to $5.72 at 1347 AEDT amid a wider market downturn.

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