Qantas names new low-cost international carrier

Airline Industry Information, August 31, 2001

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

Qantas Airways, an Australian carrier, has named its new low-cost international carrier Australian Airlines.

Australian Airlines will not compete with Qantas Airways, and the larger carrier will terminate unprofitable routes over the next six months, many of which the low-cost airline will start serving. A business plan for Australian Airlines, which is expected to start operations by July 2002, is expected to be ruled upon by Qantas Airways' board in October.

Seven destinations in the Asia-Pacific region have already been nominated for the low-cost carrier: Tahiti, Kuala Lumpur, Ho Chi Minh City, Shanghai, Seoul, Sapporo and Fukuoka. A spokesperson for Qantas Airways indicated that the carrier would most likely fly from the Australian cities of Darwin, Cairns and Perth, according to the Sydney Morning Herald.

The new Australian Airlines is expected to start with four to six aircraft, possibly Boeing 767-200s, which can seat 270 passengers.

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