Australian flag carrier Qantas today announced an aircraft maintenance joint venture with Malaysia Airlines subsidiary MAS Aerospace Engineering (MAE).

Qantas said the joint venture, scheduled to begin operations in Malaysia next year, would target the Asia-Pacific aircraft maintenance, repair and overhaul market, which is forecast to reach US$15 billion by 2016.

Qantas Chief Executive Geoff Dixon said the venture built on the investment of US$258 million Qantas had previously announced for its Australian engineering operations.

"It also reflects the Qantas Group's objectives of growing our aviation-related businesses into growth markets in Asia and the Pacific," he said.

Malaysia airlines chief Idris Jala said the joint venture would provide a world-class facility in the Malaysian capital.

"Our priority will be to develop Kuala Lumpur as a maintenance, repair and overhaul hub for the Asia-Pacific region for services," he said.