Asia focus for Qantas

Qantas Airways unveiled last week plans to set up two new Asia-focused airlines and launch a US$9bn plus fleet upgrade.

The Australian airline, which has been reviewing its offshore operations to cut costs and unprofitable routes, said up to 1,000 jobs could be lost as it launches a new, premium Asian airline and a Japanese budget carrier, the latter jointly with Japan Air Lines and Mitsubishi Corporation.

Qantas plans to acquire up to 110 Airbus A320 series aircraft. It also plans to give up some of its loss making long-haul routes and retire older planes.

"To do nothing, or tinker around the edges, would only guarantee the end of Qantas International in our home Australian market," the airline's Chief Executive, Alan Joyce, told a news conference. He said the international operation's cost base was around 20% higher than its major rivals.

"That would be a tragedy," Joyce added as Qantas shares rose 4% on the news.  He did not confirm when the new premium airline would be launched, but said it could be based in Kuala Lumpur or Singapore and would not be majority owned by Qantas. www.qantas.com

Index/Home page
 

OUR READERS' FINEST WORDS (All times and dates are GMT)

All comments are filtered to exclude any excesses but the Editor does not have to agree with what is being said. 100 words maximum