Qantas Airways has revealed it is examining a possible partnership with newly created South American giant LATAM Airlines.

The Australian flag-carrier, which currently has a code-sharing agreement with LATAM, is now exploring the potential of a joint venture with the South American airline.

“It would be great but we would have to work out what is the art of the possible,” Qantas International chief executive, Simon Hickey, said.

There may be regulatory difficulties following the merger between LAN and TAM to form LATAM, which was finalised earlier this year.

The Australian carrier is also expecting a strong boost once code-share partner American Airlines completes its merger with US Airways.

A recent deal with Dubai-based Emirates has also recently boosted its fortunes.