Qantas to seek partnership in future, says CEO

Qantas Airways chief executive Geoff Dixon says the airline will be in some sort of partnership with another carrier in the next five years.

But Mr Dixon said such an association would likely retain the national airline's separate brand and not result in a full merger.

"I think that we will be in some association with another carrier," he said.

"I think that will become necessary."

Mr Dixon played down suggestions made last week by prime minister John Howard and incoming deputy prime Mark Vaile of a merger with Singapore Airlines.

He said while talk of a merger with Singapore Airlines was "hypothetical", the scene for consolidation in the global aviation industry had been set by the merger last year of Air France and KLM to create the world's biggest airline.

"Well I think any merger that involved Qantas and any other airline would have to involve two brands, two separate entities, in a dual listing type operation," Mr Dixon told the Nine Network.

"I cannot see, despite some of the things being said in the last few weeks, Australia allowing Qantas to disappear or the brand to disappear."

Mr Dixon said Singapore Airlines was not the only likely future partner for Qantas.

"I've always said I believe Singapore Airlines are a wonderful carrier, have a tremendous brand, tremendous track record.

"Yes, they would be a lovely partner but so would British Airways, so would Cathay Pacific, so would a lot of carriers out there.

"So would Air New Zealand, which was literally taken away from us."

The New Zealand Commerce Commission in 2003 rejected a proposed alliance between Qantas and Air New Zealand, a ruling later upheld by the New Zealand High Court.

Mr Dixon said he supported a relaxing of limits on foreign investment in Qantas.

"We would like to be like every other company in Australia - all the restrictions moved.

"And if someone came in then the Foreign Investment Review board Would make the decision whether there could be an investment over 49 per cent.

"I do not believe that in the current circumstances that would affect the bilaterals (landing rights agreements) that Qantas has to work under."

Under the Qantas sale act, single foreign airlines are limited to 25 per cent of its stock, all foreign airlines 35 per cent and all foreign investors 49 per cent.

The government is considering raising the individual and aggregate foreign airline ownership caps but is expected to maintain the 49 per cent limit to ensure Qantas remains Australian owned.

"But our interest in the future for Qantas is to make sure our shareholders, who are putting the money in to enable the company to continue, are looked after and our staff," Mr Dixon said.

- AAP