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Australia's Qantas says fuel bill to rise in 07/08

Tue Jul 31, 2007 11:25pm EDT

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SYDNEY, Aug 1 (Reuters) - Australian airline Qantas Airways Ltd. (QAN.AX) said on Wednesday it would increase its international fuel surcharge next month in the face of rising fuel costs.

"Our fuel bill for 2007/08 will be approximately A$300 million ($256 million) higher than the previous year," Chief Executive Geoff Dixon told a business lunch in Sydney.

Qantas' board is currently evaluating options for a restructure, an idea inherited from a private equity consortium which failed to secure a US$9 billion takeover for the company in May.

Analysts said it may create a new aircraft leasing unit and separate its frequent flyer programme and freight assets from the main business.

The airline is also seeking a new chairman after Margaret Jackson said she would step down amid heavy criticism of the way management handled the A$5.45-a-share bid by a group including Macquarie Bank Ltd MBL.AX and private equity firm TPG [TPG.UL].

((Reporting by Michael Smith; michael.j.smith@reuters.com; Reuters Messaging: michael.j.smith@reuters.net; +61-2 9373-1821)) Keywords: QANTAS/RESTRUCTURE

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