QANTAS'S five million frequent flyer members - or one in four Australians - will be taken out of the airline and put into a separate company that will be listed on the stock exchange for at least $3 billion.

The new venture is expected to include a Canadian loyalty program operator, Aeroplan, as a strategic partner, but it will be controlled by Qantas.

The new Qantas entity is expected to be launched within the next nine months and will have a much wider customer loyalty program for frequent flyer customers, including the flexibility to purchase seats on any flight.