28 Nov '11, 12am

Qantas to shelve Asia premium airline plan

SYDNEY: Australian carrier Qantas is set to shelve its controversial plan to set up a joint-venture premium airline based in Asia due to the economic turmoil in Europe, a report said Monday. The Australian Financial Review said that after a year of planning for the capital-intensive project based in either Kuala Lumpur or Singapore, executives had now decided to focus on a lower risk alliance with Malaysia Airlines. It said Qantas and the Malaysian airline were working towards a letter of intent for the new partnership. This would include a code-sharing alliance which is expected to allow joint marketing, scheduling and pricing six to nine months after an agreement is reached. The newspaper added that talks with the Singapore government would cease, citing unnamed sources. Qantas told AFP no decision had yet been taken. "It's speculation. There has not been any decision ye...

Full article: http://www.channelnewsasia.com/stories/afp_asiapacific_bu...

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