November 4, 2011
SYDNEY, Australia (AFP) – An Australian air-charter company said it would launch a new budget carrier flying passengers both domestically and to regional tourist hotspots in the wake of Qantas's grounding.
With jets sporting the iconic green and gold usually associated with the nation's sporting teams, ''Air Australia'' would commence services later this year, said parent company Strategic Airlines.
''Strategic Airlines will retire its name, red white and blue brand and full service business model commencing from 15 November 2011 to become Air Australia, a new international and domestic low-cost carrier,'' the company said in a brief statement.
''The change... will signal the start of heightened domestic competition and lower international fares, initially to Bali (Indonesia), Phuket (Thailand) and Hawaii.''
The island destinations are extremely popular with Australian tourists.
Strategic said Air Australia would officially launch its brand and showcase its new staff uniforms on Thursday, with a Brisbane to Melbourne flight likely to be its first domestic offering.
Brisbane-based Strategic was founded in 1991 as an air freight broker and primarily provides ready-made aircraft, crew, maintenance and insurance packages to other operators in Europe and Asia Pacific, as well as freight and charter services.
It follows the weekend's shock grounding of national carrier Qantas for two days over an industrial dispute which stranded 70,000 passengers in 22 cities worldwide and did serious damage to its reputation.
Rivals including Richard Branson's Virgin Australia and Malaysia's no-frills AirAsia X stepped into the breach with discount fares and extra capacity to help marooned passengers.
The Qantas labor row centered on plans to start two new Asian airlines in a bid to salvage its sinking international business, which is facing stiff competition from airlines such as Emirates and Singapore Airlines.
Singapore this week launched a long-haul budget carrier, Scoot, amid thriving rivalry for Asia's growing ranks of middle-class travellers.
Qantas has warned that it cannot survive without refocusing its business in the booming region, but workers want guarantees on job security, pay and other conditions.
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