Marhaba, Qantas

The codesharing agreement would give customers a seamless international and Australian network, exclusive frequent flyer benefits and world-class travel experiences, a Press release said.

The move was welcomed by the market, with Qantas shares closing 6.67 per cent higher at Aus$1.20, although analysts warned it will not automatically solve the airline’s problems.

Khaleej Times had reported last week the two leading airlines were expected to announce a singnificant business deal some time this week.

Under the agreement signed in Sydney by Emirates President Tim Clark and Qantas CEO Alan Joyce, Qantas will move its hub for European flights from Singapore to Dubai and enter an extensive commercial relationship with Emirates.

Subject to regulatory approval, the deal goes beyond codesharing to include coordinated pricing, sales and scheduling and a benefit-sharing model, although neither airline will take equity in the other.

It also means an end to Qantas’s 17-year partnership with British Airways on the so-called kangaroo route to London, which has spanned nearly two decades.

Analysts and aviation experts told Khaleej Times the move by Qantas to end its alliance with British Airways and team up with Emirates is a vote of confidence in Dubai’s fast growing status as a global aviation hub, and also signals the inevitable shift in the balance of power from Europe’s legacy carriers to the Gulf.

“This agreement represents a step-change for the aviation industry,” said the Qantas chief. “It is far bigger than a codeshare or even a joint services agreement. This is the biggest arrangement Qantas has ever entered into with another airline.”

Under the deal, Qantas will fly daily A380 services from both Sydney and Melbourne to London via Dubai, meaning that between the two airlines there will be 98 weekly services between Australia and the Emirates hub.

It will see Qantas become the only other airline operating to Terminal 3 and the new purpose-built A380 concourse at Dubai International Airport, delivering an additional 900 seats daily from Melbourne and Sydney. This will further accelerate the number of Australasian passengers travelling through Dubai which grew by 26.3 per cent in the first half of 2012.

As a consequence, Qantas flights to Singapore and Hong Kong will terminate in those countries and be rescheduled to enable more same-day connections across Asia.

“Emirates extensive route network provides Qantas customers with one-stop access to more than 90 destinations in Europe, the Middle East, Africa and West Asia,” the Press release said.

For Emirates customers it will open up Qantas’ Australian domestic network of more than 50 destinations and nearly 5,000 flights per week. The carriers will also coordinate their respective trans-Tasman services between Australia and New Zealand with Emirates offering improved schedules for flights to Christchurch and Auckland, including the introduction of Emirates’ daily A380 services on the Melbourne-Auckland route in October.

“The time was right for developing a long-term, future forward partnership with Qantas, the iconic Australian airline,” said Emirates’ Tim Clark. “Since our first flights began in 1996, Australia has long been a popular destination for Emirates leisure and business travellers, making it one of the top three destinations in our network.”

“By establishing this partnership we are providing our passengers with additional connectivity in Australia and the region and the ability to utilise enhanced frequent flyer benefits and have access to premium lounges for an exceptional travel experience.”

Qantas’ Joyce said the partnership would deliver unprecedented benefits to Qantas customers and mark a decisive step forward in the Group’s strategy. “Emirates is the ideal partner for Qantas,” he said. “It has a wonderful brand, a modern fleet, an uncompromising approach to quality and it flies to the A list of international destinations.

“As the world’s biggest international airline, with a network that perfectly complements our own, Emirates will help us give our customers across Australia a dramatically expanded range of travel options. “Together with Emirates, Qantas will provide a unique ‘one stop’ hub service, as well as a deeply integrated frequent flyer and customer proposition.”

• news@khaleejtimes.com