Qantas has named Alan Joyce, the head of its budget subsidiary Jetstar, to take over when group chief executive Geoff Dixon steps down in November.

"Alan will assume the role of chief executive designate from today and will also join the board of Qantas with immediate effect," said Qantas chairman Leigh Clifford.

VIDEO: Qantas probes exploding cylinders

"Geoff and Alan will work together over the next four months to ensure a smooth transition and continuity."

The changeover will take full effect after the company's annual general meeting on November 28.

Mr Clifford praised Mr Dixon's leadership since his appointment as chief executive in 2000.

"Qantas has successfully adapted and responded to the myriad challenges the industry has faced since 2001 and is duly recognised as one of the best managed airlines in the world," he said.

Mr Joyce, who has been with the Qantas group since 2000, previously worked for the defunct domestic carrier Ansett and Ireland's Aer Lingus.

"Alan is, we believe, the best person to take Qantas forward in what is a very challenging environment," Mr Clifford said.

Qantas in turmoil

The announcement of Joyce's appointment follows a period of turmoil in the sector. Last week Mr Dixon predicted the aviation industry would shed 100,000 jobs worldwide by the end of the year as high fuel costs force massive restructuring.

Qantas recently announced the carrier would axe 1,500 jobs from its global workforce and said the high cost of fuel would result in a "new aviation world order."

Separately, a Qantas Boeing 747 flying from Hong Kong to Melbourne last Friday had to make an emergency landing in the Philippines capital Manila when a hole was torn in the fuselage.

Air safety investigators say an exploding oxygen cylinder may have been to blame for the incident.