Bidding on for no-frills Qantas HQ
17aug01
QUEENSLAND has entered an interstate bidding war to snare the Australian headquarters of a new, no-frills international airline being planned by Qantas.
Qantas confirmed last night it was already negotiating with Premier Peter Beattie and other state governments about where to locate the new company, which will fly to near-Asian cities at budget prices.
Mr Beattie is understood to be promoting Cairns and is preparing a range of incentives like tax breaks to attract Qantas, which expects to win board approval for the new airline in October and begin operating next year.
"We'd love to see it located in Cairns and it is a matter for discussion and negotiation," Mr Beattie said.
News of the Qantas plan came yesterday as Mr Beattie visited Melbourne to launch a $2 million television and newspaper advertising campaign to attract business immigrants to Queensland and visitors to the Goodwill Games later this month.
It also came as Qantas announced a $415.4 million after-tax profit for 2000-01 -- down $101.9 million, or 19.7 per cent on the previous year.
Qantas chief Geoff Dixon said he had spoken to Mr Beattie and representatives of other states about possible incentives.
"We'll pick the one that at the end of the day suits the network best," Mr Dixon said. "We really haven't decided."
Mr Dixon said the low-cost airline would fly two classes in Boeing 767 jets to seven Asian centres.
Destinations being considered included Kuala Lumpur, Fukuoka, Vietnam, Seoul, and Shanghai.
"This will be an airline that will have two classes, albeit a smaller business class," Mr Dixon said. "It will have different seating, slimline-type seating which is available around the world now."
The aircraft would be equipped with smaller galleys to allow more seats on board and reduce catering-related labour and handling costs and would
be staffed predominantly by Australians.
Mr Dixon said the new operation would be linked to the Qantas frequent-flyer program but would operate under another name, which would be "very Australian".
Industry sources said Queensland would have a strong chance of attracting Qantas because the company had already announced plans for a maintenance base in Brisbane for its Boeing 767 fleet.
Successive state governments have pressed hard in recent years to make Brisbane the aviation capital of Australia.
International aviation giant Boeing bases its regional operations in Brisbane and the Beattie Government scored a coup in 1999 by using investment incentives to entice Virgin Airlines to establish its Australian operation -- Virgin Blue -- in Brisbane.