Qantas- Emirates announce partnership and Qantas-British Airways divorce
Qantas and Emirates announced a new global aviation alliance. Under the agreement Qantas will move its hub for European flights to Dubai and enter an extensive commercial relationship with Emirates. The 10-year partnership includes integrated network collaboration with coordinated pricing, sales and scheduling as well as a benefit-sharing model.
As a result of the deal Qantas will terminate its revenue-sharing agreement with British Airways and will launch daily A380 services from both Sydney and Melbourne to London via Dubai. The airline will restructure its Asian network to strengthen its focus on services to and within the region and will also withdraw from the Singapore-Frankfurt route. The partnership will commence in April 2013, subject to approval by the Australian Competition and Consumer Commission (ACCC).
On the other hand,International Airlines Group’s wholly owned subsidiary British Airways and Qantas will terminate their joint business from March 31, 2013.This follows Qantas’ announcement that it is entering a global partnership with Emirates.
The joint business was established in 1995 to enable close commercial cooperation on Qantas and British Airways services between the Australia and the UK.The airlines will continue to work together as part of the oneworld alliance and through bilateral codeshares.
Qantas chief executive Alan Joyce said, “Over the past 17 years the joint business with British Airways has been central to the Qantas network.However, global operating conditions have changed and partnership with Emirates is the right strategy for Qantas.”
IAG chief executive Willie Walsh said, “We’re ending the joint business on amicable terms and support Qantas’ decision to work with Emirates.”This is a small part of our overall network and this move fits in with changes in our global strategy.”Asia has become a key market focus for IAG and we’re talking to a number of airlines about alternative options for us.
“Qantas has made it clear that its international performance has been weak and the termination of the joint business won’t have any negative impact on IAG’s financial targets.”- Agencies
