Qantas talks with Malaysia Airlines break down

No Qantas partnership with Malaysia Airlines

Qantas has just issued a formal update on its international strategy, revealing that discussions about a possible partnership with Malaysia Airlines will not continue "due to parties being unable to reach mutually agreeable commercial terms".

The proposed pact had included the establishment of QF's controversial new Asia-based premium airline, which it appears from the statement will now no longer proceed.

CEO Alan Joyce said that despite the breakdown in negotiations, Asia remains a priority for the Qantas Group.

He said the carrier was continuing to explore opportunities in the region, including joint ventures and alliances.

"However, mindful of global economic uncertainty, and consistent with Qantas' focus on disciplined financial management, the group will allocate minimal capital to such ventures," he said.

Joyce said that it was still vital to continue the transformation of QF's international business, with plans to return it to profitability in the short term "on track".

The statement just issued didn't mention whether the cessation of talks with Malaysia Airlines would have an impact on MH's prospective membership of the oneworld Alliance, which Qantas is sponsoring.

More information in today's Travel Daily.


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