Bernie P
9th March 2012, 09:28 AM
QANTAS' plans for a new premium airline in Asia are in jeopardy after talks with Malaysia Airlines ended with no deal.
The two airlines were unable to reach mutually agreeable commercial terms in their negotiations on a partnership, Qantas said today.
Qantas chief executive Alan Joyce said Asia remains a priority for the airline, and opportunities in the region will continue to be explored.
But minimal capital will be allocated to such ventures due to economic uncertainty and the company's focus on disciplined financial management, he said.
"Last year, Qantas announced a five-year plan to address the challenges facing the international business," Mr Joyce said in a statement.
"The transformation of Qantas international business remains vital, with plans to return the international business to profitability in the short term on track.
"In the medium term, the Qantas flying businesses, both domestic and international combined, will exceed the cost of capital on a sustainable basis."
Read more: News.com.au (http://www.news.com.au/business/breaking-news/qantas-plans-for-asian-airline-in-doubt/story-e6frfkur-1226294605498#ixzz1oZSXFKhV)
The two airlines were unable to reach mutually agreeable commercial terms in their negotiations on a partnership, Qantas said today.
Qantas chief executive Alan Joyce said Asia remains a priority for the airline, and opportunities in the region will continue to be explored.
But minimal capital will be allocated to such ventures due to economic uncertainty and the company's focus on disciplined financial management, he said.
"Last year, Qantas announced a five-year plan to address the challenges facing the international business," Mr Joyce said in a statement.
"The transformation of Qantas international business remains vital, with plans to return the international business to profitability in the short term on track.
"In the medium term, the Qantas flying businesses, both domestic and international combined, will exceed the cost of capital on a sustainable basis."
Read more: News.com.au (http://www.news.com.au/business/breaking-news/qantas-plans-for-asian-airline-in-doubt/story-e6frfkur-1226294605498#ixzz1oZSXFKhV)