Qantas prepares for low cost launch

Qantas is to unveil fare and route details of its new low cost carrier Jetstar later this month. The start-up airline is to launch in May to challenge rival Virgin Blue on domestic routes in Australia. Jetstar’s fleet of Airbus A320s is claimed to have a lower cost base than Virgin Blue and is designed to complement two-class, full service Qantas flights on key internal business routes. Qantas also offers QantasLink commuter flights. Qantas chief executive and managing director Geoff Dixon said: “From what we know of the capacity plans of Virgin Blue and the other domestic carriers over the next two years, and our own plans for capacity increases, the three-product offering of Qantas, Jetstar and QantasLink will have around 65% of the domestic market. “This is our line in the sand and will we provide the capacity and infrastructure to defnd it against Virgin Blue and the other carriers.” His remarks came as Qantas revealed pre-tax profits of £220 million for the half year ending 31 December, reflecting a return to profitability following the severe impact of the Iraq war and SARS in the first half of 2003. Report by Phil Davies