Reuters
Monday December 1, 2:08 PM AEDT
Qantas says to buy 23 Airbus planes for new carrier
SYDNEY, Dec 1 (Reuters) - Australia's biggest airline, Qantas Airways Ltd , said on Monday it plans to acquire 23 Airbus planes for its new low-cost carrier, to be named Jetstar.
Qantas Chief Executive Geoff Dixon said the airline would use new Airbus A320 aircraft from June, 2004, and would eventually have an all-A320 fleet.
"The domestic pleasure market is growing rapidly and now represents over 60 percent of all passengers. Jetstar will concentrate on growing this market," Dixon said.
Qantas confirmed in October it would launch a low-cost domestic carrier in May 2004 in an effort to fend off competition from Richard Branson's Virgin Blue.
The new, independently-run airline would have a minimum of 23 aircraft and the airline had been negotiating with Boeing Co , Airbus and aircraft lessors to acquire at least 23 Boeing 737-800 or A320 planes for the venture by mid-2005.
Qantas's fleet is dominated by Boeing aircraft, accounting for 72 percent of its 179 planes, including 50 737s. It has four Airbus A330s with another nine on order and 12 Airbus A380 planes due to be delivered from 2006 to 2011. Shares in Qantas, which is around 17-percent-owned by British Airways Plc , last traded 0.6 percent lower at A$3.31 in a weaker overall market.
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