Qantas has put its plans to establish a new Asian airline on hold for 2-3 years.
The airline’s Group CEO, Alan Joyce said that after failing to agree a deal with Malaysia Airlines (MAS) to establish a new Kuala Lumpur-based carrier, the controversial project would be delayed.
“Nothing is happening in the short term,” Bloomberg reported Joyce saying in an interview. “It’s more of a long-term issue.”
Earlier this month, Qantas revealed that it had failed to reach commercial terms with MAS over the new full-service carrier, which would have served key Asian routes out of KL International Airport.
“We both agreed mutually that we would delay it for a while and then start the dialogue again in the future,” Joyce added.
The new carrier formed part of Qantas’ widely-criticised international strategy, which was unveiled in August last year. The plans caused consternation among unions, which accused the airline of off-shoring Australian jobs.
