Tuesday, August 16, 2011

DTN News - AIRLINES NEWS: Qantas Overhauls With $9 Billion Fleet Order

DTN News - AIRLINES NEWS: Qantas Overhauls With $9 Billion Fleet Order

(NSI News Source Info) TORONTO, Canada / SYDNEY, Australia - August 16, 2011: Australia's Qantas Airways (ASX:QAN.AX - News) is setting up two new airlines in Asia and ordering $9 billion of new Airbus (Paris:EAD.PA - News) aircraft as part of a do-or-die makeover to salvage its loss-making international business.

Qantas will also cut 1,000 jobs in 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 scrutinize 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 (Tokyo:8058.T - News).

The new airlines will fly Airbus A320 jets, cementing their reputation as the plane of choice on regional networks over archrival Boeing Co. (NYSE:BA - News) Qantas, which also flies Boeing's best-selling 737 narrowbodies, plans to acquire up to 110 of the Airbus planes, worth more than $9.4 billion.

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