Qantas has sold its catering business to the Emirates Group's company dnata, also known as the Dubai National Air Transpart Association.
The sale of the Qantas Catering Group, the sum of which has not been disclosed, will not result in any job losses, the Australian airline says.
Instead, Qantas's 1,200 catering employees will become part of the dnata operation, however the transaction is subject to approval from the Australian Competition and Consumer Commission.
Under the agreement, dnata will supply food for Qantas flights for an initial 10 years.
Qantas will work with dnata in menu design and development and will continue its premium menus for first and business class passengers that showcase Australian produce.
The group's domestic chief executive Andrew David said the sale of the catering business allows them to prioritise investing in the airline.
"We've always said that we would explore the sale of certain assets where it makes sense, just as we've done before, including with the sale of our catering facility in Cairns and Qantas Defence Services," Mr David said.
He said the catering businesses will benefit from dnata's global footprint.