Qantas fails to reach deal on premium carrier
March 9, 2012, Sydney, Aus. - Qantas Airways Ltd. said Friday it failed to strike a deal with Malaysia Airlines as part of its plans to set up a new premium airline in Asia.
The Australian flagship carrier said in a statement it was unable to reach mutually acceptable terms on a partnership with Kuala Lumpur-based Malaysia Airlines. Qantas shares were down 2.6 per cent.
Qantas CEO Alan Joyce said Asia remains a priority for the airline, and opportunities in the region would continue to be explored.
The airline last year announced a five-year plan to turn around its faltering international business. Malaysia Airlines has also been struggling amid high fuel costs and a sluggish global economy.
"The transformation of Qantas international business remains vital, with plans to return the international business to profitability in the short term on track,'' Joyce said.
Joyce announced last month that Qantas had started discussions with existing and potential partners about setting up a new, Asia-based premium carrier.