The decision comes amid a broader overhaul of its in-flight entertainment, with initiatives in the works including the availability of more Hollywood blockbusters, streaming content to personal devices and being able to keep mobiles and tablets powered on from gate-to-gate.

The airline, which had long had a contract with Channel Nine for a bespoke bulletin updated three times a day, has selected Sky News as its news provider in part because of the 24/7 nature of its news updates. Sky News will not be streamed live in flight, but the airline will be able to load the latest news bulletin on the ground as it prepares the aircraft for take-off.

Qantas will also receive additional programming from Foxtel and Fox Sports as part of the three-year contract, with the change-over from Nine set to occur on November 1.

“The feedback we get, particularly from our business customers, is how important inflight news bulletins are,” Qantas brand marketing and corporate affairs head Olivia Wirth said. “For many, watching the news between Sydney and Melbourne is their chance to catch up on what’s happening. Sky News, Foxtel and Fox Sports were able to offer us an integrated package of news, entertainment and sport, with a focus on ‘on demand’, which is central to how they already deliver their content.”

As part of the deal, Sky News will also provide its international Australian news service live to Qantas’s network of lounges overseas to allow customers on their way back home to watch the latest updates from Australia.

“We’re excited about bringing Qantas customers a significantly enhanced and expanded service featuring news, commentary, business news and weather from across all the Sky News channels,” Sky News Australia chief executive Angelos Frangopoulos said.

The decision to change news providers was made after an invitation-only tender was put out to the several media companies in April.

Bauer Media, which had managed in-flight advertising for Qantas and will continue to publish the carrier's in-flight magazine, has been replaced by Multi Channel Network (MCN) as its exclusive advertising provider. MCN is a joint venture between Foxtel and Fox Sports.

Qantas said there were no plans to increase the amount of in-flight advertising as a result of the switch to MCN. It said the focus was on integrating advertising to deliver a more targeted result for advertisers and increasing revenue that way.

Qantas is re-investing its in-flight ad revenue into upgrades to its in-flight entertainment system. On Tuesday, the airline announced it would almost double the amount of new release Hollywood blockbusters to 10 per month from six in August.

Qantas is also looking to enable its Q-Streaming technology on its aircraft to allow customers to watch content on their own devices via a closed on-board Wi-Fi network, as Virgin Australia Holdings has done on its domestic aircraft. Qantas already uses the service for streaming to its own iPads in each seat on its 767 aircraft and will enable it for customers' own devices as it refits its A330 fleet from the end of this year.

“We know that inflight entertainment is a key part of people’s journey,” Ms Wirth said. “It’s something we invest heavily in and have a plan to keep improving over the next 12 months.”

Qantas is also working with the Civil Aviation Safety Authority on approval for personal electronic devices like smartphones and tablets to be powered on for the entire flight, but in “flight mode” like US and European carriers. A decision is expected in the next month or two.