QANTAS is still in talks regarding the establishment of a premium Asian airline.
Speaking to investors today, chief executive Alan Joyce said Qantas was working to return its international operations to profitability.
"We have announced our plans to invest in a premium airline based in Asia,'' he said.
"Talks continue, and it remains premature to make any announcements at this stage.
"Our aim is to position ourselves within the South East Asian marketplace in advance of planned aviation liberalisation.''
Within five years, Qantas planned to have a hub in Asia feeding traffic into the Qantas and Jetstar networks, Mr Joyce said.
"In five years time, and always, the Qantas Group will call Australia home, but increasingly we will be an efficient, multi-brand enterprise that is a flagship for Australian expertise and quality around the world,'' he said.
Mr Joyce again defended the airline's decision to ground its fleet in reaction to disputes with three unions, saying it had brought about an end to industrial action.
"We are confident that the industrial outcomes will be reasonable and will exclude the extreme claims that would have threatened our capacity to make the necessary transformation of our international business,'' Mr Joyce said.