Low fares out at airline
QANTAS Airways's new low-cost international airline, Australian Airlines, will not be a low-fare carrier nor compete head to head with its parent.
Australian Airlines chief executive officer Denis Adams said that while its cost base would be 30 per cent lower than Qantas, it would not be offering low fares to international passengers.
The new airline, owned by Qantas but independently managed out of a small corporate office of 15 staff in Cairns, will commence flying on October 27 with bookings open in May.
Mr Adams told a tourism industry breakfast in Brisbane that while the new carrier would be a party to the Qantas Frequent Flyer program, it would be restricted.
He said passengers would be able to burn points with Australian Airlines but the jury was still out as to whether or not they could earn them.
Access to the business passengers' Qantas Club lounge was also off limits to Australian Airlines passengers, in the interests of cost savings,
The Qantas offshoot was also confident of turning a "small profit" in its first year.