Australian Airlines, Qantas's international low-fare airline unit, will introduce a Premium Economy cabin in mid-2006 featuring more spacious seating, priority boarding and priority food service. The current all-economy, 271-seat cabins of its 767s will be reconfigured to feature 28 premium and 238 economy seats. Separately, the carrier said it will begin twice-daily service between Cairns and Tokyo next year, replacing Qantas. Weekly capacity on the route will increase by 500 seats.

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