QANTAS ANNOUNCES CHIEF EXECUTIVE FOR NEW AIRLINE

Qantas Airways Chief Executive Officer, Geoff Dixon, today announced the appointment of Qantas Executive General Manager Marketing, Denis Adams, as Chief Executive of Qantas' proposed new international airline.

Mr Dixon also announced that the carrier would be called Australian Airlines.

"We expect Australian Airlines to begin operating in the second half of 2002, initially flying routes into Asia," Mr Dixon said.

"We expect to operate these services out of a number of Australian cities," he added.

Mr Dixon said the airline would also take over some current unprofitable Qantas routes from which Qantas intended to withdraw over the next six months.

He said Mr Adams would be joined by a small team from Qantas to finalise a submission to the Qantas Board and begin initial preparations for the airline's start up.

"We will work with the relevant authorities to obtain an airline operating certificate, as well as approvals for traffic rights and the Australian Airlines route structure," he said.

"Plans regarding fleet, livery and the headquarters for Australian Airlines will be announced in coming months.

"We are very excited about the opportunities offered by his new airline, which would not be possible under the existing Qantas cost structure," Mr Dixon said.

"We believe the long term growth prospects for Australian Airlines are very promising, with benefits for employment and tourism."

Mr Dixon said Denis Adams, who joined Qantas in 1996 as Group General Manager Commercial Business, had more than 30 years' experience in aviation and travel.

"Denis brings to the role the benefits of a long and successful career in aviation, at Qantas and during 25 years with the former Australian Airlines, as well as solid experience in the role of Chief Executive Officer gained during his time at Jetset," he said.

Mr Dixon said Qantas had retained the Australian Airlines name since the merger between Qantas and domestic carrier Australian Airlines in 1993.

"We believe Australian Airlines is the perfect name and brand to take this new low cost operation into the international arena," he said.

Mr Adams will take up his new appointment on 3 September.