QAN Qantas Airways Ltd

By Robert Wall

SEOUL--Qantas Airways Ltd. (QAN.AU) is pressing ahead with plans to start direct flights connecting Sydney with New York or London, bolstered by its year-old Perth to London link.

Qantas Chief Executive Alan Joyce says both Boeing Co. (BA) and Airbus SE (AIR.FR) have proposed plane designs that can meet extra long-range mission--dubbed Project Sunrise--even without a full payload. Qantas now will ask Boeing and Airbus for "best and final offers," with responses due in August, Mr. Joyce told reporters on the sidelines of the International Air Transport Association's annual meeting.

"This is a game changer operation," Mr. Joyce said. The flights would last about 21 or 22 hours.

By the end of the year, Qantas expects to decide if its business case works. "There is a really strong business case to make this work," he said, with a few issues still to be ironed out, including contracts for pilots.

Airbus and Boeing are protecting production slots to deliver planes in 2022 and 2023. Boeing's offer is expected to focus on a version of the new 777X, with Airbus basing its concept on the A350 long-haul plane.

Qantas would fly the plane with a new first and business class. The plane would also feature premium economy and regular economy seats.

Last year, Qantas began direct flights between Perth and London. Those flights have more than 90% seats sold in premium seats and economy, Mr. Joyce said, with passengers paying premium for the direct service. Qantas operates Boeing 787 Dreamliners on the route. That experience, Mr. Joyce said, helps make the case for Project Sunrise.

Qantas would like to also link Perth directly with Paris, but, Mr. Joyce said, is holding off amid a dispute with the Western Australian airport over fees.

Write to Robert Wall at robert.wall@wsj.com

(END) Dow Jones Newswires

June 02, 2019 20:33 ET (00:33 GMT)

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