Qantas 747-400. Courtesy, QF

Qantas (QF) has confirmed that its plans for a partnership with Malaysia Airlines (MAS) to create an Asian premium airline have been dropped.

The two sides were “unable to reach mutually agreeable commercial terms,” the Australian carrier said in a stock exchange filing. 

“Malaysia Airlines has not issued any statement on this subject,” MAS said in response to inquiries. The airline did not respond to further emails.

A number of media outlets, including Reuters, reported QF had called off talks with MAS after an agreement could not be reached on the exact terms of the deal.

The QF statement keeps the door open to possible future deals in Asia and hints at the nature of monetary problems involved.

Asia remains a priority, it said, adding that it continues to explore opportunities in the region, including joint ventures and alliances (ATW Daily News, Jan. 7 2010).

“However, mindful of global economic uncertainty and consistent with Qantas’ focus on disciplined financial management, the group will allocate minimal capital to such ventures,” according to the stock exchange filing.