Qantas and Emirates lodged (10-Sep-2012) a joint formal submission to the Australian Competition and Consumer Commission (ACCC) seeking approval for their proposed 10-year partnership and for interim approval to enable the airlines to begin commercial planning. The airlines expect the partnership will improve connectivity, provide greater choice of travel from Australia to Europe, Middle East and Africa while also enhancing benefits for frequent flyers. The airlines also expect the alliance to boost product innovation and create jobs and tourism opportunities. Competitors are expected to be forced to introduce more competitive fares and product. If approved, the partnership will see Qantas and Emirates offer 98 weekly Australia-Dubai frequencies while Qantas will gain one-stop access to over 70 Emirates destinations in Europe, the Middle East and Africa. Emirates will gain access to Qantas' domestic Australian network of over 50 destinations and 5000 flights per week. The airlines would also coordinate on services between Australia, New Zealand and Southeast Asia. Qantas warned it would be forced to stop operating to Europe and further decrease its international operations if the partnership with Emirates was not to be approved. Qantas stated, “The proposed conduct is essential to underwrite the sustainability of Qantas International and to continue to provide substantial benefits to Australia and Australians.” [more - original PR] [more - CAPA Analysis]
Qantas and Emirates lodge formal submission to the ACCC
You may also be interested in the following articles...
European airline seat capacity growth accelerates - perhaps too quickly: Outlook for winter 2016/17
The summer 2016 season came to an end on 29-Oct-2016. Adjusting for an extra week relative to the previous summer, it produced seat growth of 6% for capacity to/from/within Europe, matching the rate of growth in summer 2015, but higher than the 10-year average rate of 4% and higher than any other summer since 2010.
Current indications from data filed with OAG are that Europe will also experience accelerating capacity growth in the winter 2016/2017 season, which runs from 30-Oct-2016 to 25-Mar-2017. Adjusting for the season being shorter by one week relative to last winter, total seat growth in Europe is set to reach 7%, compared with 6% growth in winter 2015/2016 (and 6% growth in summer 2016). This is higher than the 10-year average rate for winter of 3% and the highest winter growth since 2007/2008.
On routes to all but one region from Europe, seat growth this winter will both be faster than last winter and higher than its 10-year average. The one exception is Europe to Middle East, the fastest-growing region, where capacity growth will remain at 10%. This report presents analysis of this winter's seat growth for Europe by region and by airline group.
Emirates-Qantas JV expands as partnerships become more intricate, while some airlines go it alone
Qantas and Emirates are again evolving global airline alliances and partnerships. Four years after announcing their landmark joint venture, Qantas in late 2016 is expected to disclose additions to the way it serves Europe in partnership with Emirates. The possible changes – a new nonstop London flight, reintroducing an Asian stopover – may seem incremental. There is a significant impact to the many airlines competing in the Europe-Australia market, but the underlying relevance is global.
The expansion of the JV would not be possible without the increased comfort that Emirates and Qantas feel toward each other, and their ability to have intricate models for handling the increasingly complicated partnership and number of hubs involved. JVs are no longer in a binary classification of existence or absence; there is a scale from rudimentary to near-consolidation.
As JVs like Qantas-Emirates become more sophisticated, the basic JVs – or even airlines without – are dearly lacking. There has been a profusion of JVs in recent years, with more on the way, but they have tended to be confined. Partners need to be more comfortable with each other in order to add additional airlines and markets, later consolidating as they stitch together individual partnerships.