Qantas and Emirates enter historic partnership

Forum for discussing non-Pakistani aviation issues and news.
needroos
Registered Member
Posts: 88
Joined: Tue Jul 10, 2012 9:18 pm

Qantas and Emirates enter historic partnership

Post by needroos »

In the face of record losses, Qantas has formed a partnership with Emirates to cut its costs on its loss making international routes. Details below:


Qantas and Emirates enter historic partnership



Qantas Airways and Emirates have entered an extensive partnership that will see the pair collaborate on routes and frequent flyer benefits, with Qantas to switch its hub for European flights to Dubai from Singapore.

The partnership will commence in April 2013 and run for 10 years, said Qantas in a statement.

While the alliance marks a major strategic shift for both carriers, rumours of the alliance have circulated for two weeks.

"The 10-year partnership will go beyond codesharing and includes integrated network collaboration with coordinated pricing, sales and scheduling as well as a benefit-sharing model," said Qantas.

The deal stops short, however, of the pair taking equity stakes in each other. It will also see Qantas terminate its joint business with International Airlines Group, parent of British Airways and Iberia.


© H. Gousse/Airbus
Qantas will launch daily A380 services from Sydney and Melbourne to London through Dubai. Combined, the two will operate 98 weekly services between Australia and Dubai. Qantas will be the only carrier other than Emirates to operate from Dubai International Airport's Terminal 3.

Qantas passengers transiting Dubai will gain access to Emirates' destinations in Europe and Africa; Emirates passengers will gain access to Qantas's domestic network in Australia.

The carriers' frequent flyer programs will be aligned, with passengers of the respective airlines gaining reciprocal access to benefits such as lounge access, priority check-in, priority boarding, and other services.

This is the most significant partnership the Qantas Group has ever formed with another airline, moving past the traditional alliance model to a new level," said Qantas Group chief executive Alan Joyce. "It will deliver benefits to all parts of the Group."

"We currently have an Asian flying schedule based on travelling via Asia to Europe," Joyce said. "But our Australian business customers want better access to Asia, and we have been looking to address this for some time."

"With European services transiting through Dubai, Qantas' Asian services will no longer be a subsidiary of the 'Kangaroo Route,'" he added. "Instead they will be dedicated to connecting Australians with our region, and Asian visitors to Australia."
mac777
Registered Member
Posts: 378
Joined: Mon Feb 06, 2012 9:13 am

Re: Qantas and Emirates enter historic partnership

Post by mac777 »

i doubt any competitition commission will give the green lights for this- specially abt pricing.
surprising that qantas dumps oneworld partners british airways.
i cant really see substantial advantages to them.i think they should have remained in competition
needroos
Registered Member
Posts: 88
Joined: Tue Jul 10, 2012 9:18 pm

Re: Qantas and Emirates enter historic partnership

Post by needroos »

Well Qantas's international arm is loosing money for the past few years, it cant make it any worse. Plus by moving its hub from Singapore to Dubai it can save alot of money. Qantas isnt leaving One World. The advantage for it is that the agreement with BA means that Qantas customers fly to London and then onwards on BA, which is more expensive after a long flight, while with Emirates its customers can fly into Dubai, switch onto Emirates for onwards flights, which they hope that customers will find cheaper and a more appealing deal. Emirates gets into the Australian domestic market, which Etihad is already tapping into after it bought a share in Virgin Australia. As for regulators, Qantas has been forced into this position due to cut throat competition, will likely go through. At worst it will be asked to give up some slots at heathrow.
User avatar
Pineapple
Registered Member
Posts: 644
Joined: Fri Sep 28, 2007 6:52 pm
Location: Sydney-Australia

Re: Qantas and Emirates enter historic partnership

Post by Pineapple »

BA wont be too happy with this decision. And Oneworld in genral. They have ended agreements with Cathay Pacific and Air France as well.

Does that mean passengers can fly with Qantas tickets to KHI, ISB and LHE also? With QF codes and EK aircrafts?
4 engines 4 long-haul
needroos
Registered Member
Posts: 88
Joined: Tue Jul 10, 2012 9:18 pm

Re: Qantas and Emirates enter historic partnership

Post by needroos »

Well BA is already berged with Iberia and it has also bought BMI, further details, from the FT:

IAG in talks with Qatar
Airways over Asia
By Andrew Parker and Neil Hume
International Airlines Group, parent of British Airways, has held talks with Qatar Airways
about the possibility of the two carriers forming a partnership focused on Asia.
British Airways and Qantas confirmed on Thursday that they were terminating their joint
venture on routes between the UK and Australia in March, after the Australian carrier
announced plans for a partnership with Emirates Airline.
Willie Walsh, IAG’s chief executive, said the joint venture was
ending on “amicable terms”, adding it was a “small part” of the
group’s network and therefore would not jeopardise its financial targets.
However, he added: “Asia has become a key focus for IAG and we’re talking to a number of
airlines about alternative options for us.”
One person familiar with IAG said that it had held discussions with three airlines, including
Qatar Airways, about the possibility of a partnership focused on Asia, where air travel in
countries such as China is growing faster than in Europe and the US. No final decision has
been taken, added this person.
Qatar Airways declined to comment.
Qatar Airways is one of three fast-expanding Gulf airlines, flying to several Asian
destinations, and Mr Walsh this year expressed admiration for the Doha-based carrier.
Gerald Khoo, analyst at Espirito Santo, said Qatar Airways was the most likely candidate
with which IAG could form a partnership.
“This would offer one-stop connections to Asian destinations and Australia in a mirror image
of the Qantas/Emirates arrangement,” he said.
British Airways’ joint venture with Qantas on the Kangaroo route is 17-years-old but its
value to both airlines has diminished because of increasing competition, including from the
Gulf carriers.
IAG’s dealmaking focus is currently on American Airlines, the US carrier. AMR, American
Airlines’ parent, filed for bankruptcy last year, and IAG is considering the case for buying a06/09/2012 IAG in talks with Qatar Airways over Asia - FT.com
mac777
Registered Member
Posts: 378
Joined: Mon Feb 06, 2012 9:13 am

Re: Qantas and Emirates enter historic partnership

Post by mac777 »

i think this alliance is meant for pax travelling to and from australia.
the wolf is already into the farm-so the farmer has no option other than feeding it
ek will gain in terms of passengers while qantas will gain by reducing expenses.
y should someonefly qantas to dubai from melbourne then change to ek say to rome or munich while he can travel all the way with emirates
needroos
Registered Member
Posts: 88
Joined: Tue Jul 10, 2012 9:18 pm

Re: Qantas and Emirates enter historic partnership

Post by needroos »

Yes, that is exactly what is going to happen. Qantas will nudge passengers towards Emirates to fly to Europe via Dubai.

Qantas itself is going to deploy its fleet in East Asia and China.