Qantas Denies Shelving Plans For Asian Airline, May Seek Alliance With MAS Instead

By Neville D' Cruz MELBOURNE, Nov 29 (Bernama) -– Qantas says reports that it will delay the establishment of an Asian airline are speculations, but the airline does say it needs to be flexible depending on market conditions. Uncertain global economic climate, particularly in Europe, has prompted Qantas' management to consider delaying plans to establish a premium carrier in Asia and instead seek an alliance with Malaysia Airlines (MAS), The Australian Financial Review reported. Qantas Chief Executive Alan Joyce said Monday no final decision has been made on the formation of an Asian carrier or an alliance. "We're keeping all of our options open. We believe a new premium airline in Asia is important for us. "The timing of that airline and how it works with partners are still part of the discussions we're having with both Singapore and Malaysia and no final decision has been made on what we are going to do," he told ABC Radio. Joyce said Qantas has to be flexible on its plans and must be able to respond to market conditions. "We're not going to communicate or talk about the speculations in the press," he added. Qantas on Monday forecast a fall in the first half underlying profit of up to 66 per cent due to A$650 million in costs from rising fuel costs and industrial disputes with unions. It expects to post an underlying net profit of A$140 million to A$190 million in the six months to Dec 31, 2011, which compares to A$417 million underlying profit in the first half of 2010/11. -- BERNAMA