Qantas has launched an investigation into allegations that the airline purchased in-flight headphones made by inmates at a Chinese prison who were regularly beaten and held in solitary confinement if they failed to meet production targets.

The airline said it had immediately suspended its dealings with Vietnam-based Airphonics, one of its main suppliers which is accused of contracting out work to a third Chinese company that uses prison labour in China to fill large orders.

Qantas: "Very concerned" about the claims. Credit:Getty Images

A Qantas spokesman said the company was "very concerned" by the allegations and had suspended its use of the supplier until an investigation was carried out.

The Australian Financial Review spoke to two former inmates of Dongguan Prison, in the southern Chinese province of Guangdong, who alleged that they had made headphones for numerous international airlines.