Qantas (QF) Chief Executive Officer Geoff Dixon has announced that Australian Airlines (AO) would cease flight operations from July 2006 saying, "Australian (Airlines) didn't work out the way we wanted it to."
AO flights will be replaced by QF flights as another QF creation - Jetstar (JQ) expands its international network to include Sydney-Osaka and Osaka-Brisbane-Sydney flights. Jetstar is also planning flights to Vietnam, Phuket, and Honolulu.
Pursuing a "two-brand strategy" Qantas will continue operating its lucrative long-haul routes while allowing Jetstar to provide low-cost service on more competitive flight sectors.
Starting with the termination of AO flights, QF will operate seven services between Bali and Sydney, Melbourne and Perth. Over time Qantas services to Bali will be assumed by Jetstar.
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