Qantas and Telstra form alliance

Qantas and Telstra have joined forces to give frequent flyer points and other benefits to buyers of mobile phones and Internet accesss.

The wide-ranging alliance also involves a co-branded ISP and Qantas is taking an 'anchor' tenancy on Telstra.com.

By combining 2.4 million Qantas frequent flyers and more than one million online Teltra users including substantial shareholder and customer bases the two companies expect the alliance to generate revenues immediately.

Telstra chief executive Dr Ziggy Switkowski said revenues are expected to grow to'hundreds of millions' of dollars within three years.

"We expect to attract at least an additional 200,000 mobile customers over the next few years and a similar number of new customers are expected to join the co-branded ISP," he said.

"Telstra and Qantas have agreed that the co-branded products will be exclusive offerings to the market and we will offer customers significant value compared with what they would receive separately."As part of the agreement new co-branded mobile phones will be launched in September and are designed and priced specifically for high volume users such as business travellers.

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