Quantas Airways Ltd agrees to Onex Corp deal

The proud new owners are enthusiastic about the launch of Jetstar, which

will be the lower cost extension of Quantas Airways. They have very high

expectations for Jetstar, as the distances between major cities are great

and due to the overwhelming grip that Quantas Airways already has on the

Australian market. Quantas Airways also owns many other businesses and is

currently designing a strategy to lower costs. The cost reduction program

and the take over, has many employees very nervous, as they believe that the

new owners will out source the maintenance operations to lower wage

countries, even though the buyout firms have indicated this option has not

been considered.

The consortium has assured the public that Quantas Airways will remain

Australian and that Quantas management does not intend to break up the

airline that has become an Australian icon over the years. Bob Mansfield,

director of the Airline Partners Australia, said that everyone involved is

aware of the responsibility that now lies with them and reassured employees

that there are no plans to cut the regional services.

The Australian Prime Minister, John Howard, has also expressed his

feelings in regard to the take over, by remaining optimistic about the

carrier, and that the shareholders will take any changes in consideration

before implementing them. He has also stated that new investments into the

industry can be an advantage, but that the market will be the deciding

factor.