The airline is currently replacing its older aircraft with newer Airbus A380s and Boeing 787s which are up to 20 per cent more fuel-efficient -- and also significantly quieter.

The 787 is expected to use about as much fuel to take a passenger 100km as a hybrid car and Qantas argues in its submission to the government white paper on aviation that a reduced "green" depreciation schedule would encourage the quicker adoption of new technology.

"Government can play an important leadership role, introducing an expanded, accelerated 'green' depreciation regime, reducing the effective life of an aircraft and encouraging rapid deployment of emerging and breakthrough technologies as soon as they become available," the airline said.

Qantas said an aircraft tax depreciation of three to five years also would be in-line with those applicable to major competitors such as Cathay Pacific Airways and Singapore Airlines.

It said a reduction to three years would reduce its tax liability over the next 10 years by $1.36 billion in present value terms, while a reduction to five years would save it $952 million.

Qantas also argued that aviation should be given free carbon permits under an Australian emissions trading scheme (ETS) in conjunction with other incentives designed to assist in move to technology with fewer carbon emissions.

The airline said Australia's ETS should permit international sourcing of carbon permits to avoid volume and price volatility. Businesses should be allowed to use the expensive alternatives provided they were able to be audited, were reliable and represented "real" reductions in greenhouse emissions.