Emirates and Qantas Group announced (06-Sep-2012) the signing of a 10-year global aviation partnership designed to provide customers a seamless Australian and international network with frequent flyer benefits. Qantas Group CEO Alan Joyce said under the partnership Qantas will relocate its hub for European flights to Dubai. The partnership "will go beyond codesharing" and includes integrated network collaboration with coordinated pricing, sales and scheduling as well as a benefit-sharing model. The airlines will not take equity stakes in either carrier. Qantas and Emirates will submit an application for interim authorisation to the Australian Competition and Consumer Commission (ACCC) in order to commence commercial planning. Subject to regulatory approval, the partnership is expected to commence in Apr-2013. Key points are as follows:
- Qantas will launch daily Sydney-Dubai-London Heathrow and daily Melbourne-Dubai-London Heathrow services using A380 equipment. This will see Qantas and Emirates jointly offer 98 weekly Australia-Dubai frequencies;
- Qantas will gain access to Emirates' European, Middle East and African network;
- Emirates will gain access to Qantas' Australian domestic network;
- The carriers will coordinate their services between Australia, New Zealand and Southeast Asia;
- Qantas and Emirates' frequent flyer programmes will be aligned to provide reciprocal mileage accrual and benefits;
- Qantas will restructure its Asian network including the increasing of capacity to Singapore, re-timing of services to Singapore and Hong Kong to improve network connectivity, and withdrawal from Singapore-Frankfurt. The changes will see Qantas' Asian network become dedicated to connecting travellers between Australia and Asia, with an overall 40% increase in available seats between Australia and Asia;
- Qantas and International Airlines Group (IAG) joint business arrangement will be terminated on 31-Mar-2013 due to Qantas' new partnership with Emirates, while Qantas' codeshare agreements with Cathay Pacific to Rome and Air France to Paris will be terminated. [more - original PR - Qantas ] [more - original PR - Qantas II] [more - original PR - Qantas III] [more - CAPA Analysis]
Qantas Group: "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. It will deliver benefits to all parts of the Group.... Together with Emirates, Qantas will provide a unique 'one stop' hub service, as well as deeply integrated frequent flyer and customer benefits.... The partnership delivers on all four pillars of the Qantas Group's international strategy," Alan Joyce, CEO. Source: Company statement, 06-Sep-2012.
Emirates: "The time was right to develop a long-term partnership with Qantas.... By establishing this partnership we are providing out passengers with additional connectivity in Australia and the region, the ability to utilise reciprocal frequent flyer benefits and access to premium lounges and travel experiences," Tim Clark, president. Source: Company statement, 06-Sep-2012.