Qantas, Australia's biggest airline, said on Wednesday its new Asian budget airline venture will likely take to the skies by November.

Qantas turned up the heat on Asia's fast-growing breed of low-cost airlines in April when it announced the joint venture totalling SGD$100 million (USD$58 million) with Singapore state investment agency Temasek Holdings and two Singaporean businessmen.

"We hope it will be launched by around and about November," Qantas Chief Executive Geoff Dixon said in a National Press Club address. Qantas expects to get an air operator's certificate for the new airline within three months, he said.

"People have said it's a high risk strategy, but given the size of Qantas, we've got an investment of around about AUD$40 million (USD$28 million)... we believe the investment is something we can handle very easily."

Jetstar, the name of Qantas's new low-cost domestic venture, was also the preferred name for the Asian airline, he added.

Qantas, which is 19 percent owned by British Airways, is using existing cash to fund its stake in the airline that will fly to Asian cities within five hours of Singapore.

The Australian carrier will have a 49.9 percent stake in the airline, while Temasek will hold 19 percent, and businessmen Tony Chew and F.F. Wong would own 21.1 percent and 10 percent, respectively.

The new airline will be the fifth budget operator to fly to and from Singapore, following Thai AirAsia, a joint venture between Malaysian budget carrier AirAsia and Thailand's Shin Corp, and Jakarta-based Lion Air, which both already operate flights.

Valuair, owned by ex-Singapore Airlines staff, has just started flying.

Tiger Airways, a budget venture between Singapore Airlines and Irish discount airline Ryanair is expected to start operations this year.

Qantas's partner Temasek, which owns 57 percent of flag carrier Singapore Airlines, also holds 11 percent in Tiger Airways.

(Reuters)