SHANGHAI has firmed as Qantas' preferred option for an Asian depot to resuscitate its international business by transferring those services to its discount airline Jetstar and avoid the costly long-haul trips to Australia.
The flag carrier, which yesterday scotched reports it was planning a Singapore or Malaysian hub, has launched a review of its overseas services.
A taskforce is expected to report to the board within months.
"The focus is on Qantas's long-haul business and we are keen to get it back to where it is providing an improved return on capital as soon as we can," a Qantas spokesman said.
However, this sparked renewed talk that Qantas might be planning for Jetstar to take over the bulk of its international operations in a bid to avoid unionised labour.
The spokesman refused to comment, and also dismissed as "pure speculation" reports that it was planning a new hub in Singapore or Malaysia to avoid flying some of its services all the way back to Australia.
Qantas chief executive Alan Joyce told BusinessDaily last month it would pursue a hub in Shanghai.
An analyst said the Qantas taskforce could not ignore establishing a base for Jetstar in Shanghai and offer the airline's services as a "real alternative to the Flying Kangaroo".
"The old Qantas model will not be around in anything like its present guise for too much longer, because if it continues the company will go out of business," the analyst said.
"This is the next logical step for two reasons: it allows Jetstar to address a far larger Asian and Middle-East market; and it gives the group the ability to assign the Jetstar or Qantas brands and cost structure to various international markets."
Qantas acknowledged its international business was underperforming.
"Our market share has fallen in recent years and we need to re-look at this area of the business," the statement said. "A project team has been established to look at Qantas' international product and service."
A very sad day indeed......what a disgrace.....analyst my a**....one just has to read the new j* pilot contract and the verbal crap that the so called chief pilot released this morning to see how well this symphony has been orchestrated ............