QANTAS WELCOMES ACCC DECISION

Qantas Airways Limited today welcomed the decision by the Australian Competition and Consumer Commission not to oppose its commercial relationship with Impulse Airlines.

Qantas Chief Executive Officer Geoff Dixon said: “Today’s decision means Qantas will provide improved regional and leisure services in Australia. We will continue to offer a wide range of discount fares although, as we have said, some of the very low fares offered recently are not sustainable.”

The final commercial relationship between Qantas and Impulse will involve:

· Impulse contracting to Qantas its eight Boeing 717 and 13 Beechcraft 1900D aircraft, complete with pilots, cabin crew and engineers;

· Impulse operating Boeing 717 services for Qantas, under the QantasLink brand and livery, to primarily leisure destinations, including Gold Coast, Maroochydore and Hamilton Island and also between Melbourne and Hobart;

· Continuing Beechcraft services in NSW and to Canberra and Newcastle;

· Continuing the call centre operation in Newcastle;

· Developing new QantasLink non-stop services from Sydney to Townsville and Hobart;

· Qantas honouring all Impulse tickets after Impulse ceases operations.

“While the new arrangements could involve some transfers for a small number of existing Qantas staff, I confirm that these staff will be offered ongoing employment with Qantas,” Mr Dixon said.

Mr Dixon also said Qantas would work closely with the Federal, ACT and Tasmanian Governments in relation to their agreements with Impulse Airlines.

“Today’s announcement means Qantas will offer an enhanced regional network and schedule and it also complements our recent decision to re-brand our four wholly owned subsidiary airlines – Airlink, Eastern Australia Airlines, Southern Australia Airlines and Sunstate Airlines – as QantasLink,” Mr Dixon said.

QantasLink will offer all passengers access to the benefits of the Qantas loyalty programs, together with the convenience of through baggage check for domestic and international connections.