Qantas has announced it will purchase 12 additional Canadian-made Bombardier 72-seat Q400 aircraft for A$400 million (US$355.8 million) to be assigned to the QantasLink division with options to purchase another 24.

"These aircraft will be used to increase capacity and service frequency on key regional routes as well as pursue new growth opportunities," said Qantas CEO Geoff Dixon.

"The Q400, which offers jet-like speed, improved passenger comfort and lower operating costs is central to QantasLink's growth strategy. It can service most airports and is more environmentally friendly than alternative jet aircraft," he said.

Mr Dixon said the investment, following QantasLink's A$200 million investment in the first seven Q400s delivered in 2006, was a clear indication of the Qantas Group's ongoing commitment to regional air services in Australia.

Mr Dixon said the new aircraft would enable the retirement of all QantasLink 36-seat Dash 8-100 series aircraft by early 2010. "Capacity growth for QantasLink over the period July 2008 to June 2010 will be around 19 per cent per annum."

Mr Dixon said QantasLink and Bombardier planned to finalise contracts for the increased order by the end of this month.

QantasLink currently operates 2,000 flights a week, serving 50 metropolitan and regional destinations throughout Australia with a fleet of 49 aircraft. The Q400 aircraft primarily operate services on QantasLink's Queensland and ACT network at this stage.