Qantas and its Singaporean partners are on course to launch operations of their Singapore-based low-cost airline in December.
The start-up has concluded lease deals for eight Airbus A320s, for delivery from October, and will take two more on a short-term transfer from Qantas's domestic carrier Jetstar. Most senior management is in place and the company is working towards its air operator's certificate (AOC), says Qantas chief executive Geoff Dixon. The airline will not reveal its route structure until it receives its AOC, while a formal name for the operation will be announced in September.
Meanwhile, since the launch of Jetstar in May, the Qantas group has maintained a domestic market share of over 65%, says Dixon. Strong domestic business helped Qantas achieve a net profit for the year ended 30 June of A$650 million ($465 million) - 88.8% up on last year - on revenues of A$11.4 billion. The results were also boosted by a gradual recovery in international business and cost and efficiency savings of A$152 million. The group is aiming for further cost reductions of A$500 million in 2004-5 and A$500 million in 2005-6.
EMMA KELLY / PERTH
Source: Flight International
