Qantas would be better off discarding its loss-making international carrier Australian Airlines, an industry expert said on Friday.

A media report on Friday stated that Qantas was considering dumping Australian Airlines as it prepares to begin flying its low-cost offshoot Jetstar on international routes in early 2007.

Consulting firm Centre for Asia Pacific Aviation's executive chairman Peter Harbison on Friday said Qantas would be better off without Australian Airlines, the worst-performing of its six brands.

"It is very hard to see why Qantas would continue with both models," Mr Harbison said.

"The Jetstar model seems to be a lower cost version of something very similar to Australian Airlines.