Sydney, March 11, 2012 (AsiaBizz): Australian carrier Quantas’ plans to make a premium Asian airline failed recently. The Airline announced on March 9, 2012 that talks with the Malaysian Airlines had collapsed and signaled an end to their Asian airline hopes as well.
Quantas had always kept Asia as its priority and aimed to expand in the region due to the global economic uncertainty, as well as the focus on the financial discipline. The group said that it will allocate minimal capital in such ventures.
Alan Joyce, the chief executive, said in a statement, “Last year, Qantas announced a five-year plan to address the challenges facing the international business.” Joyce further added, “The transformation of Qantas’s international business remains vital, with plans to return the international business to profitability in the short-term on track.”
Last August, Quantas had revealed plans to establish a joint venture premium airline in Asia as it repositioned itself with the fastest growing region in the industry. With the new premium airline, Quantas also intended to turn around its loss by making an international arm. Quantas was planning a partnership with Malaysian Airlines on a venture including an establishment of a new premium airline. The talks between the parties failed as they were not able to reach mutually agreeable commercial terms.