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Qantas and Emirates Sign Major Global Aviation Partnership Deal

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Qantas and Emirates has entered into a new global aviation partnership.

Under the agreement signed this morning by Emirates President Tim Clark and Qantas Group CEO Alan Joyce, Qantas will move its hub for European flights to Dubai and enter an extensive commercial relationship with Emirates.

The 10-year partnership will go beyond codesharing and includes integrated network collaboration with coordinated pricing, sales and scheduling as well as a benefit-sharing model. Neither airline will take equity in the other.

Qantas will launch daily A380 services from both Sydney and Melbourne to London via Dubai, meaning that together Emirates and Qantas will offer 98 weekly services between Australia and Dubai.

 Qantas will be the only other airline operating to Terminal 3 and the new purpose-built A380 concourse at Dubai International Airport.

The partnership will give Qantas customers one-stop access to more than 70 Emirates destinations in Europe, the Middle East and Africa. For Emirates customers it will open up Qantas’ Australian domestic network of more than 50 destinations and 5,000 flights per week.

The carriers will also coordinate on their services between Australia and New Zealand and services between Australia and South East Asia.

The Emirates and Qantas frequent flyer programs will be aligned, giving customers expanded opportunities to earn and redeem points.

Emirates and Qantas will provide reciprocal access to tier status benefits including end-to-end customer recognition, lounge access, priority check-in and boarding and other exclusive services.

Qantas Group CEO Alan Joyce said the partnership would deliver unprecedented benefits to Qantas customers and mark a decisive step forward in the Group’s strategy.

“Emirates is the ideal partner for Qantas,” Mr Joyce said. “It has a wonderful brand, a modern fleet, an uncompromising approach to quality and it flies to the A-list of international destinations. 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 ... As the world’s largest international airline, with a network that perfectly complements our own, Emirates will help us give our customers across Australia a dramatically expanded range of travel options.”

The airlines will submit an application for interim authorisation to the Australian Competition and Consumer Commission (ACCC) in order to begin commercial planning. Subject to regulatory approval, it is anticipated that the partnership will commence in April 2013.

Broader Qantas Network Changes

Qantas will restructure its Asian network to strengthen its focus on services to and within the region.

“We currently have an Asian flying schedule based on travelling via Asia to Europe,” Mr Joyce said. “But our Australian business customers want better access to Asia, and we have been looking to address this for some time.”

“With European services transiting through Dubai, Qantas’ Asian services will no longer be a subsidiary of the ‘Kangaroo Route’. Instead they will be dedicated to connecting Australians with our region, and Asian visitors to Australia. We will increase dedicated capacity to Singapore and re-time flights to Singapore and Hong Kong to enable more ‘same day’ connections across Asia. We believe this will significantly improve the economics of our Asian operations.”

Qantas will also withdraw from the Singapore-Frankfurt route. While this service has been underperforming for some time, and withdrawal was inevitable, the partnership with Emirates will enable it to take place with minimal impact on Qantas customers.

See also: IAG and Qantas to Terminate Joint Business.

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