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Qantas to launch low cost airline
Qantas is to launch a new no frills domestic airline in May 2004 it announced today.
It follows the success of rival Virgin Blue which in just three years has managed to gain about 30% of the Australian domestic market.
The new airline will be a separate business with its own brand. Qantas boss Geoff Dixon said it would have at least 23 aircraft by mid-2005.
“This will be a true low cost carrier – lean, highly competitive and with the standards of safety and reliability associated with Qantas,” he added.
A decision on whether to base the airline on the remnants of former low cost carrier Impulse or build it from scratch is to be taken in the next six weeks. Qantas said its current domestic operation would continue as before, but with a “greater focus on delivering quality service, particularly to the business community.”
Alan Joyce, 37, has been appointed Executive General Manager of the new carrier. Mr Dixon said a small team, including a number of “former senior executives from Ryanair” would also work for the new airline.
Analysts believe the Qantas announcement will mean a delay for the planned Virgin Blue flotation.
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