=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2006/04/10/financial/= f195453D54.DTL --------------------------------------------------------------------- Monday, April 10, 2006 (AP) Qantas Plans to Scrap Its Budget Carrier (04-10) 19:54 PDT SYDNEY, Australia (AP) -- Qantas Airways Ltd. is scrapping its budget carrier Australian Airlines = in July, and will focus on its key Qantas and low-cost Jetstar brands in local and international markets. Jetstar is Qantas' second budget offshoot and the company wants it to operate as its only low-cost carrier. From November, Jetstar will begin flying international routes to Bangkok and Phuket in Thailand, Osaka in Japan, Vietnam's Ho Chi Minh City, Honolulu, and the Indonesian vacation island of Bali. "Australian Airlines has done an outstanding job over the past few years, but we are determined to take full advantage of Jetstar's success, with its highly competitive cost structure and service standards," CEO Geoff Dixon said in a statement. Dixon said Australian Airlines began flying when SARS, or severe acute respiratory syndrome, took hold in the region in 2003, and the airline never recovered from the associated downturn in international travel. There were 8,000 cases of the disease in 30 countries, about 800 of them fatal. He said 30-40 people would lose their jobs in the next few months with t= he loss of the airline while another 550 people would be recruited to staff the new Qantas and Jetstar services. Jetstar, which was set up to compete with rival budget airline Virgin Bl= ue in May 2004, will offer two classes. The airline will initially use six Airbus A330-200 aircraft before upgrading to 12 Boeing 787 aircraft, Dixon said. Jetstar will unveil fares and schedules for its international flights in June. ---------------------------------------------------------------------- Copyright 2006 AP