The subsidiary was established due to the People's Republic of China's objection to national carriers of countries with which it had diplomatic relations flying to Taiwan (Republic of China), which the former regarded as a breakaway province.[2]
The airline operated two Boeing 747SPs[3] and a Boeing 767[4] seconded from the Qantas fleet, repainted in a modified livery, which did not display the Flag of Australia, or the kangaroo logo, which was replaced by a dynamic ribbon. It initially flew its flights using the IATA code IM but switched to Qantas's QF in 1994.
Australia Asia Airlines ceased operations in 1996 as Qantas could by then serve Taiwan in its own right due to it being completely privatized. Australia Asia Airlines' aircraft were then returned to Qantas service.[5]
