SYDNEY(AFP) - Australian carrier Qantas's plans to create a premium Asian airline were thrown into disarray on Friday after it announced talks with Malaysia Airlines had collapsed.
While Asia remained a priority for Qantas and it wanted to expand in the region, given global economic uncertainty and its focus on financial discipline, the group said it will allocate minimal capital to such ventures'.
'Last year, Qantas announced a five-year plan to address the challenges facing the international business,' chief executive Alan Joyce said in a statement announcing the talks had failed.
'The transformation of Qantas's international business remains vital, with plans to return the international business to profitability in the short-term on track.' Qantas revealed plans to establish a joint-venture premium airline in Asia last August as it repositions itself within the industry's fastest-growing region and seeks to turn around its loss-making international arm.
Citation: Qantas Asian airline in doubt as Malaysia talks fail
Basically, the distance between Malaysia and Australia is comparably short. Therefore, I think few passengers demand more comfort than low fare or high frequency. So, Qantas should have taken measures for a way to serve cheaper or more frequent airlines in order to compete with Low Cost Careers.
