Qantas decided to discontinue the public use of the Australian Airlines brand in favour of having Jetstar as its leisure, now low-cost carrier.

Qantas and Jetstar are operating services to replace Australian Airlines' routes, with Jetstar International introduced in late 2006 to help expand the Qantas Group's international presence.

[2] Its initial network of flights concentrated on leisure tourism between Queensland and Japan.

On 12 April 2006 Geoff Dixon, CEO of the Qantas Group, announced that the group would be focusing on a two-brand strategy, the Qantas and Jetstar brands, and as such the Australian Airlines brand would cease to exist from July 2006.

[5] The parent company closed down the Australian Airlines operation completely at the end of August 2007.