Qantas orders $9bn of new plans as it sets up two new airlines in Asia move

City A.M. Reporter
QANTAS Airways is setting up two new airlines in Asia and ordering $9bn (£5.5bn) of new Airbus aircraft as part of a do-or-die makeover to salvage its loss-making international business.

Qantas will also cut 1,000 jobs from Australia as it shifts its focus to the world’s fastest-growing aviation market, triggering threats by unions to block the move and a government pledge to scrutinise the plans.

Qantas, which has been reviewing its offshore operations to cut costs and unprofitable routes, said it will launch a new, premium Asian airline and a Japanese budget carrier, the latter jointly with Japan Airlines and Mitsubishi Corp.

The new airlines will fly Airbus A320 jets; as Qantas rebases its loss-making international operations in Asia, it also plans to give up some of its long-haul routes and retire older planes.