Australia-based airline, Qantas, has announced it will launch a new low cost domestic airline in May 2004.

Qantas CEO and managing director, Geoff Dixon, said the new airline would be a separate business with its own brand and would be established either using the operation of the former low cost carrier, Impulse, which Qantas acquired in May 2001, or by using a new ‘greenfields’ company. A decision will be made within the next six weeks.

“This will be a true low cost carrier,” said Dixon. “Lean, highly competitive and with the standards of safety and reliability associated with Qantas.”

Negotiations are currently underway with Boeing, Airbus and aircraft lessors for the acquisition of 737-800 or A320 aircraft, with the carrier predicted to have a minimum of 23 aircraft by mid-2005.

Alan Joyce, formerly with Aer Lingus and Ansett, who joined Qantas in 2001, has been appointed executive general manager of the new business and will be assisted by a number of former Ryanair senior executives.