Discount Qantas airline to be launched next year

SYDNEY - Qantas Airways said yesterday its planned new international discount airline would start flying in the second half of next year, and would be headed by Denis Adams.

The airline will be known as Australian Airlines.

Chief executive Geoff Dixon told said in statement to the Australian Stock Exchange that the new airline would initially fly between Australia and Asia.

"We expect to operate these services out of a number of Australian cities," he said.

The new airline is planned to service routes that Qantas' full service business finds uneconomic.

Qantas shares were yesterday down 17c at $A2.82 in a weaker overall market.

Much of the weakness was caused by the shares going ex-dividend their final payout of 9c a share.

- REUTERS

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