SYDNEY, Australia (AP) -- Qantas Airways' new discount international carrier, Australian Airlines, should begin flying to six Asian cities in the third quarter of 2002, the new airline's chief executive says.
Initial services will be nonstop return flights from the northeastern tourist city of Cairns to Osaka, Nagoya and Fukuoka in Japan as well as to Singapore, Taipei in Taiwan and Hong Kong, Australian Airlines CEO Denis Adams said.
The only major hurdle yet to be cleared is approval of the new airline's cost structure by Qantas CEO Geoff Dixon. Adams said he was confident of getting the approval early next year.
"The simplicity of the Australian Airlines model enables us to save significant costs compared to more traditional airlines,'' he said. "We have one aircraft type and one class of service.''
He said negotiations were currently underway with unions on wages, conditions and work practices.
"Provided these are concluded satisfactorily, we will be in a position to commence flying around September next year,'' he said.
The new carrier will be wholly owned by Qantas, but will have separate management and will operate independently.
Headquartered in Sydney, Australian Airlines will start operations with four Boeing 767-300 aircraft, building to a fleet of 12 767-300s.
Australian Airlines would eventually fly to every Australian mainland state, Qantas said in a statement.
Adams said the airline would also provide important international growth for the Qantas group.
"Australian will not fly on any routes against Qantas,'' he said. "Our job will be to create profitable flying on routes Qantas has withdrawn from or on routes from where Qantas has been unable to extract a satisfactory return.''
It seems to be me every airline in the world will have it's own discount air service pretty soon...