Fed: New carrier to start late next year

AAP General News (Australia)
12-11-2001
Fed: New carrier to start late next year

CANBERRA, Dec 11 AAP - Qantas Airways planned to launch its discount international
carrier, Australian Airlines, next August with new, single-class aircraft, chief executive
Geoff Dixon said today.

The Qantas board approved the commencement of Australian Airlines at a meeting last week.

Mr Dixon today said Qantas made the decision to launch the new carrier after it was
worried about the number of routes Qantas could not fly because of its cost structure,
particularly low-price leisure routes.

He said the new single-class lower cost airline would start later next year.

"We will buy those aircraft in - they'll be 767-300 aircraft which carry around about
267 people in a single class," Mr Dixon told the John Laws radio program.

The launch date was to be in April but was now in August because of the crisis in international
aviation since September 11, Mr Dixon said.

"The industry itself is probably in its greatest crisis since its inception and we
just wanted to wait a little bit longer to see how some of the Asian markets in particular
responded," Mr Dixon said.

"We're seeing a little bit of response now.

"We feel that around about August will be a time, if everything settles down and there's
no other major incidents such as the September 11 one, that people will be back flying
and it will be a good time to launch it."

More than 300,000 people had lost their jobs since September 11 and the industry, particular
in the US, had shown no signs of recovery, he said.

The airline would not fly against Virgin or Qantas and would only run internationally, he said.

"No we won't be flying against Virgin and we won't be flying against Qantas," he said.

Mr Dixon said the ochre aircraft was a beautiful colour which featured a kangaroo.

"It's an ochre colour," he said.

"It's got a kangaroo but more of a fun kangaroo.

"I think it's wonderful - very much in keeping with what we're trying to achieve, which
is a high quality leisure airline.

"I think people will love it."

AAP lm/daw/ph/de

KEYWORD: QANTAS AUSTRALIAN DIXON

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