Qantas Airways Ltd launched its new international budget carrier Australian Airlines today, with an inaugural flight between Cairns to Nagoya in Japan.

Qantas Airways Ltd said a combination of flight reschedulings and the use of larger planes on key routes has minimised the impact of any cancellations caused by today's strike by ground staff.

Qantas Airways Ltd said domestic flights in Britain have been extensively rescheduled or cancelled due to a strike by staff tomorrow, but said all international services will fly.

Qantas Airways Ltd chairman Margaret Jackson said she believes a decision to keep in place the 49% foreign investment limit imposed on the airline runs counter to Australia's national interests.