Qantas-Emirates deal ‘beginning of a long-term partnership’

By April Hutchinson

The rare sight of two A380s flying side by side has cemented a new partnership between Qantas and Emirates.

Each of the airlines had one of its superjumbos fly over Sydney Harbour as part of what Emirates’ president Tim Clark called a “seismic development for the global aviation industry”.

“No carriers have ever come together to do something like that and I think it is a real testament to the bond of our new link – it has taken a herculean effort from all involved to get this kind of structure in place so quickly and effectively,” said Clark, speaking at Emirates’ headquarters in Dubai after flying with Qantas up from Sydney. “This is the beginning of a long-term partnership.”

Clark added that the partnership was “not just a codeshare or interline arrangement”. “It is a joint venture and we will treat each other’s passengers as if they were our own,” he said.

The new partnership will see the airlines cooperate on their combined 98 flights a week between Australia and Dubai.

The carriers will combine operations for five years initially, including coordination on ticket pricing, scheduling and frequent flyer benefits.

Emirates is already in the throes of its own expansion into Australia, but it’s Qantas’ passengers that will really feel the benefit of the tie-up, now with easier access to 65 one-stop onward connections in the UK, Europe, North Africa and the Middle East via Dubai.

Reduced overall flying time from Europe to Australia was also said to be one of the key benefits.

Journey times from Melbourne and Sydney to the “top 10” destinations in Europe are cut by an average of two hours going via Dubai, according to Qantas chief executive Alan Joyce.

The tie-up will also go some way to helping the Australian airline recover from a difficult patch, with the partnership said to be worth around A$90 millionto Qantas and a bolster to its international business.

Joyce said: “We have already seen a six-fold sales increase in bookings to Europe on the joint network over a nine-week period compared to last year. It’s obvious this new partnership with Emirates gives us a fantastic opportunity to grow.”

Before its new partnership with Emirates, Joyce said Qantas had only really been able to access five connecting destinations via Singapore.

The airline will now establish an international hub for itself in Dubai, where it will be the only other airline able to use Emirates’ Terminal 3.

All Emirates and Qantas A380 flights will use the terminal’s specially-built US$3 billion Concourse A which opened in January.

Capable of handling 60 million passengers a year through 20 gates, Concourse A is the world’s first purpose-built A380 facility and has direct boarding from lounge to aircraft for business and first passengers.

Australia’s minister for Infrastructure and Transport Anthony Albanese also flew up to Dubai to mark the official launch of the partnership and saidit was “vital that the national iconic brand of Qantas be successful”,claiming the tie-up would have a significant impact on tourism and trade.

“This partnership opens up new markets for Australians into Europe and North Africa with advantages for tourism, trade and economic opportunities,” he said. “It also allows for greater regional tourism opportunities in Australia.”

Clark said there was no reason why the relationship could not develop further in operational synergies down the line.

Joyce added that Qatar Airways’ imminent arrival into the oneworld alliance, of which Qantas is a member, was not an issue for him or Emirates.

“Oneworld has always been a very loose alliance,” said Joyce. “And we have worked with other airlines in other alliances in the past – we are perfectly free to go and do deals such as this one with Emirates.”

Nor did Clark rule out the option of seeking similar tie-ups for Emirates “if another airline has the chemistry we have with Qantas”.

Qantas has also rolled out a new suite of product enhancements in first and business class to coincide with the new partnership.