Qantas says its Asian offshoot will lease Airbus A320s
SYDNEY, Australia - Australian flag carrier Qantas said on Thursday that its Singapore-based Asian budget offshoot has signed a deal to lease eight Airbus planes when it starts flying later this year.
The carrier, which has yet to be named, will start operations flying four Airbus A320s, the new airline's chief operating officer Con Korfiatis said in a statement.
The first plane is scheduled for delivery by the end of October, Mr Korfiatis added.
After the first four planes are delivered, four more A320s will be phased in later.
No financial details of the deal were released.
The airline, which will be majority owned by Qantas but based in Singapore, has applied for its Singapore Air Operator's Certificate and will apply for traffic rights to a ring of Asian cities within five hours travel time from Singapore.
Qantas will hold a 49.9 per cent stake in the airline, while Singapore government investment arm Temasek Holdings will hold 19 per cent. Singapore businessmen Tony Chew and FF Wong will own 21.1 per cent and 10 per cent, respectively.
Qantas chief executive Geoff Dixon has suggested in the past that the Asian offshoot will most likely be called Jetstar Asia.
Qantas recently established a domestic budget carrier called Jetstar, which took to the Australian air on May 25, challenging local budget carrier Virgin Blue, which controls about 30 per cent of the domestic market.