Emirates Airline makes rare partnership move with TAAG in Angola's small but lucrative market

Emirates Airline is the world's largest international carrier based on ASKs. That formidable size - over 50% that of second-largest Lufthansa - means Emirates can be relatively independent but also perhaps needs to limit forays in the partnership arena in order to remain focused on its core and growing business. Conversely, its size can put off potential suitors. A strategic Emirates partnership move is a rare occurrence, and its latest comes just 18 months after beginning its landmark partnership with Qantas in Australia, a significant market where Emirates at the time had 84 weekly flights. In contrast, the latest partnership is with TAAG in Angola, where Emirates has a mere seven weekly flights.

The TAAG-Emirates scale may be smaller than Emirates-Qantas, but it will be far deeper. Emirates will manage the airline, including naming a new CEO, reviewing the airline from operations to livery and appoint four Emirates managers to the airline.

Emirates will not take an equity stake in TAAG, but otherwise the deal has the hallmarks of Emirates' longtime partnership with SriLankan, which eventually dampened Emirates appetite for getting too involved in other airlines. There could undoubtedly be benefit to Emirates: Angola is a restricted but high-yielding market. Yet TAAG, in need of restructuring, has been unable to capitalise on its home market. But there also appear to be political undertones to the deal, with the UAE focusing on trade to Africa, and in particular oil-rich Angola.