Friday, December 25, 2009

Qantas confirms Jetstar talking to AirAsia about possible merger

24 December 2009

Qantas has recently confirmed that wholly owned subsidiary Jetstar has been talking to Malaysia-based low cost carrier AirAsia about a possible joint venture.

This news comes after Qantas eyed Malaysian Airlines earlier in the year as a possible partner earlier in the year in order to set up a strong presence in Southeast Asia.

“Qantas confirms that its wholly-owned subsidiary Jetstar and AirAsia have entered discussions regarding a potential cost-saving joint venture,” said Qantas.

“However, these discussions are at a preliminary stage and no binding agreements have been reached.”

If successful, this cooperation should better position Qantas to battle it out with Singapore Airlines and its low-cost subsidiary Tiger Airways.

The announcement also comes days after an Australian federal government aviation White Paper indicated that foreign ownership laws on Qantas may be slackened.

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