Australia's Qantas Group has outlined a new international strategy, which includes cutting 1,000 jobs and establishing a new premium airline based in Asia.

"Qantas International takes up enormous amounts of capital and our cost base is around 20% higher than that of our key competitors," said the carrier. "To do nothing, or tinker around the edges, is not an option."

As part of its new strategy, the Qantas Group will cut 1,000 jobs. These job losses will stem mainly from the retirement of older aircraft and network changes.

The new strategy rests on several pillars, said Qantas. These include launching a non-stop service on the Sydney-Santiago route after eliminating the Sydney-Buenos Aires service, restructuring its agreement with British Airways, further developing the carrier's agreement with American Airlines, and looking for further opportunities to work with Malaysia Airlines.

Qantas also plans to establish a new premium carrier based in Asia. The airline will have a separate name and branding from Qantas, with its location yet to be announced.

Other major elements of the strategy include the establishment of a new low-cost carrier, Jetstar Japan, in cooperation with Japan Airlines and Mitsubishi Corporation, and a major order for 110 Airbus A320 aircraft, of which 78 will be A320neos.

Source: Air Transport Intelligence news