ATW Daily News

AirAsia scuttles Jetstar rumors as Qantas continues search

Wednesday December 24, 2008

AirAsia dismissed rumors that it is discussing a potential merger with Qantas low-cost subsidiary Jetstar Airways, although the speculation remains an interesting development for the Australian carrier, whose discussions with British Airways collapsed last week (ATWOnline, Dec. 19). First reported in Malaysia's The Star, the rumor was called "pie in the sky" by AirAsia X CEO Azran Osman-Rani. "It's the first time I have heard about it. We are just busy on our own plans," he told The Sydney Morning Herald. AirAsia CEO Tony Fernandes told The Star that his company is "always talking and looking at ways to strengthen AirAsia into a global brand," while a QF spokesperson said, "We talk to airlines all the time about possible partnerships, relationships and cooperative agreements."

Qantas had an opportunity to do a deal with AirAsia in February 2004 when then-QF CEO Geoff Dixon met with Fernandes at the ATW Airline Industry Achievement Awards dinner in Singapore. Fernandes rebuffed Dixon the next day because "Qantas wanted control," according to sources close to the discussions. QF's deal with BA reportedly fell apart over similar issues, and it also has been talking with AirAsia's archrival Malaysia Airlines about some sort of partnership (ATWOnline, Dec. 17).

by Geoffrey Thomas

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