Qantans design and engineering business will close, with its chief executive and other senior executives stepping down, the company said on Tuesday.
The announcement came after Qantan said it had raised $1bn in funding, bringing its total funding to more than $7bn.
Qantans chief executive officer and senior executives will remain in place and continue to serve as directors, according to the company.
The deal, which was announced by chief executive Glenn Jourdain, comes as Australia is experiencing an ongoing energy shortage caused by global climate change.
The country has been struggling to find enough renewable energy to meet demand, which has resulted in frequent power outages.QANTAS will be buying parts of the company’s design and production business for $1,9bn, the airline said.
It said the deal would create new jobs and create a “strong Qantanes presence” in Australia.
“This transaction will also deliver significant benefits for Qantās shareholders and a strong Qantana brand and will create a stronger and more diversified Australian manufacturing base,” it said in a statement.
“The acquisition of Qantacos parts and expertise will enable Qantadis to focus on the delivery of the best in modern design and the development of next generation aircraft.”
We look forward to contributing to Qantás future success and expanding the Qantashan family’s global footprint.
“Mr Jourchente and his predecessor Paul Ryan were the last pair of directors to leave the airline, which went into administration in 2015.