05 January 2010

Qantas offshoot to cuddle up with AirAsia

Jetstar, owned by Qantas Airways, and Malaysia's budget carrier, AirAsia, are to outline their plans for co-operation leading to a broader alliance.

The founder and CEO of Air Asia, Tony Fernandes, the CEO of Qantas, Alan Joyce, and his successor at Jetstar, Bruce Buchanan, will hold a joint press conference tomorrow morning in Sydney.

No details have been released but analysts indicate Jetstar and AirAsia will confirm a partnership to cut costs and consolidate their positions as the lowest-cost airlines in the Asia-Pacific region.

Qantas has been moving services from its main brand to Jetstar to counter the effects of the economic downturn.

Both AirAsia, the region's biggest low-cost carrier, and Jetstar are looking to expand routes across southeast Asia and Australia.

Qantas also wants to use Jetstar to be the brand to expand services to Europe from Australia.

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