Australia's Qantas Group and China Eastern Airlines have agreed to launch a new budget carrier for the Chinese market.

BBC: Qantas and China Eastern plan low-cost carrier

The introduction of a new Qantas Group structure with dedicated CEOs for Qantas International and Qantas Domestic will bring further rigor to our business.

CNN: Qantas predicts huge profit slump

"We see tremendous potential for the Qantas Group in Asia and we are looking forward to working more closely with China Eastern Airlines to deliver on it, " Alan Joyce, Qantas' chief executive officer said.

BBC: Qantas and China Eastern plan low-cost carrier