Qantas says it will not go ahead with its planned maintenance and repair deal with Malaysia Airlines (MAS).

A Qantas spokeswoman says the company will not be pursuing any joint venture with MAS.

The two airlines first signed a memorandum of understanding in late 2007 to establish a joint venture company in Malaysia to provide aircraft maintenance services.

The plan came under attack last year, with union leaders saying it could compromise safety.

The Australian Licensed Aircraft Engineers Association has welcomed the news.

The Association's federal secretary, Steve Purvinas, says only one aircraft - a 737 - was serviced in Malaysia last year, and it came back with problems.

He says Qantas chief executive Alan Joyce now needs to employ more aircraft engineers, especially apprentices.

"We certainly think it's a positive step that Alan Joyce has taken; here in Australia we have the facilities to carry out the maintenance, it's just a matter of stepping up the employment within the country," he said.