SYDNEY - AUSTRALIAN flag-carrier Qantas announced plans on Wednesday to buy up to 188 new aircraft from Airbus and Boeing to expand services into South-East Asia and defend local market share.

Qantas said it had ordered 31 narrow-bodied Boeing B737-800 aircraft and 68 Airbus A320 and A321 aircraft, with options and purchase rights for an additional 89 aircraft.

'This decision, together with existing A380 and B787 fleet commitments, secures an order stream for next generation aircraft that will allow the group to meet long term demand growth and replace older aircraft over the next decade,' said chief executive Geoff Dixon.

The aircraft would support the further growth of the two brands, Qantas and budget carrier Jetstar, in Australia and Asia, the company said.

The A320s and larger A321s will be used by Jetstar to meet growing demand for flights between Australia and South-East Asia while the B737-800s will service domestic routes.

A Qantas spokesman declined to say how much the aircraft will cost. They will be delivered over the next six years with the first plane due to arrive in February.

Qantas is building capacity on its domestic and international routes to counter growing competition from low-cost Asian airlines and Middle Eastern groups.

It will receive the first of 20 superjumbo A380 aircraft from Airbus in August 2008 and the first 15 of 65 787 Dreamliners from Boeing in December 2009.

Meanwhile, Qantas shareholders bid farewell on Wednesday to retiring chairman Margaret Jackson and director James Packer, the son of late billionaire Kerry Packer, at the company's annual meeting in Melbourne.

Mr Jackson promised to retire from the board in May after Airline Partners AUS$ 11.1 billion dollar (S$14.4 billion) takeover bid for the airline collapsed.

Mr Jackson had led the push for shareholders to accept APA's offer of US$5.45 (S$ 7.87) per share, claiming the share price would plummet if the bid did not succeed.

Qantas was trading mid-session on Wednesday at around US$5.87. -- AFP