JETSTAR PLANS TO RESUME SYDNEY-KL SERVICE

JETSTAR PLANS TO RESUME SYDNEY-KL SERVICE


KUALA LUMPUR, June 9 (Bernama) -- Australian budget airline Jetstar Airways,
a subsidiary of Qantas Airways Ltd, is looking at making a comeback to Kuala
Lumpur, according to chief executive officer Alan Joyce.

Jetstar withdrew its Sydney to Kuala Lumpur service in September last year
due to the high fuel prices.

"Jetstar would be keen on a comeback at some stage. We withdrew the Kuala
Lumpur service to grow the Japanese operation," he told reporters on the
sidelines of the 65th International Air Transport Association (IATA) annual
general meeting (AGM), here Tuesday.

Asked when Jetstar may make the comeback, Joyce said: "It depends on the
economic environment and when an aircraft is available. It is not an immediate
plan, but something that Jetstar would like to do in the future."

On Jetstar's business, Joyce said the airline is reducing its capital
expenditure by delaying the delivery of four Airbus SAS A380 by 12 months.The
airline has also decicded to defer the delivery of 12 Boeing 737-800s.

Qantas is also putting off an order for Boeing's planned 787-800 aircraft in
order to take the airline through this economic crisis. The decision would also
enable Qantas to save capital around a billion dollars next year.

"Like other airlines, we are managing the cash decision and the current
environment," Joyce said.

Joyce also said Qantas had no plans to raise more funds after the A$500
million in new capital via an equity share issue in February to pay off debt and
fund new planes.

He said the aviation industry is struggling through the global financial
crisis, but Qantas is doing better than most due to its high degree of
structural flexibility.
-- BERNAMA