Qantas to launch low-cost airline in October

Qantas has announced that it will launch its low-cost international airline, Australian Airlines, in October, providing employment to thousands of former employees of Ansett, the rival Australian carrier which collapsed last month.

The company decided to proceed with plans announced last August to set up Australian Airlines after achieving a “satisfactory” cost structure and completing negotiations with various unions regarding wages, conditions and work practices.

Qantas Chief Executive Officer Geoff Dixon said the first stage of the new airline’s operations would involve phasing in services between Cairns and Osaka, Fukuoka, Singapore, Taipei, Hong Kong and Nagoya between late October and December. The first flights will commence on 27 October, and bookings will open in May.”

Mr Dixon said: “This is great news for the Australian tourism industry, particularly in light of the damaging effects of the events of 11 September 2001 and the collapse of Ansett.

“Australian Airlines will provide thousands of jobs for Australians as well as an important growth opportunity for Qantas.

“We will begin recruiting for Australian Airlines in the middle of the year and, given the circumstances surrounding the industry today, we will give priority to suitable former Ansett employees.”

Mr Dixon said the airline was on track to commence its second stage of operations, focusing on the outbound market from Australia, in early 2003.

“This will involve flying from a second base in a southern Australian capital city to a number of ports including Phuket in Thailand and Kuala Lumpur in Malaysia,” he said.

“Australian Airlines will not compete with Qantas. It will operate on routes Qantas has withdrawn from or on routes where Qantas has been unable to extract a satisfactory return.

“It will be a full service international leisure carrier, operating one aircraft type and offering a single high level of service including meals and snacks, the most modern comfortable seating, and inflight entertainment.”

Australian Airlines will:
– Initially operate with four Boeing 767-300 aircraft, building to a fleet of 12 767-300s;
– Offer daily connecting flights for international passengers between its first operational base in Cairns and the Gold Coast;
– Be headquartered in Sydney;
– Establish a national presence as quickly as possible and eventually fly to every Australian mainland capital including Perth and Darwin; and
– Participate in the Qantas Frequent Flyer program.

Australian Airlines is wholly-owned by Qantas Airways Limited but managed separately, under Australian Airlines Chief Executive Denis Adams, and operating independently of Qantas.

* Qantas has also announced that it will add six Boeing 717 aircraft to its fleet over the next three months and introduce new non-stop services to regional Queensland cities.

Chief Executive Officer Geoff Dixon said Qantas would take delivery in May and June of six Boeing 717 aircraft configured in two classes.

The new aircraft will allow Qantas to offer new Boeing 717 services to destinations in Queensland, including Coolangatta, Rockhampton, Proserpine, Mackay and Townsville.

“The arrival of these aircraft will increase tourism opportunities throughout regional Queensland and will create more than 150 jobs within QantasLink for pilots, flight attendants, engineers and operational staff,” Mr Dixon said.

QantasLink will introduce new non-stop services on routes between:

– Sydney and Rockhampton
– Sydney and Proserpine
– Sydney and Mackay
– Sydney and Townsville
– Melbourne and Maroochydore
– Adelaide and Coolangatta
– Hobart and Coolangatta