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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.


March 9, 2012
By Carey Fredericks

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.

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Joyce announced last month that Qantas had started discussions with existing and potential partners about setting up a new, Asia-based premium carrier.