Emirates-Qantas Partnership's Global Reach

Topics: Qantas, Oneworld, IATA members Pages: 7 (2535 words) Published: March 10, 2013
With further details, Emirates-Qantas partnership will have global reach; Qantas adjusts partners CAPA > Aviation Analysis > With further details, Emirates-Qantas partnership will have global reach; Qantas adjusts partners 12th September, 2012


While the seismic Emirates-Qantas partnership was announced as covering northern Africa, Europe, the Middle East, New Zealand and Southeast Asia – by all means a large portion of the world – Emirates and Qantas are laying the seeds for the partnership to possibly cover the entire world. In the short term, Emirates could finally tap into leisure demand from the Pacific Islands, largely out of reach from Dubai, via Jetstar and Qantas services. In the medium term, Qantas could partner on Emirates' services to South Africa if Australian regulators prohibit Qantas and South African Airways from working together. Back in the short term, Qantas has further detailed the alliance's impact on its current grouping of partners. Emirates and Qantas, as Air New Zealand and Virgin Australia did in their alliance, have pledged to maintain current trans-Tasman capacity levels and say they are considering launching new routes to Auckland from Adelaide and Perth. Further network changes could be in the pipeline for the carriers as they seek interim authorisation of their partnership in order to effectively participate at the upcoming IATA slots conference. Qantas further discloses impact on partners

The Emirates-Qantas arrangement extends beyond a mere freesale codeshare to a "partnership" but with the two carriers avoiding the phrase "joint-venture". Likewise, "revenue sharing" and "metal neutrality" are not discussed, but the carriers reference the opaque statements of having a "benefits-sharing model" and a mantra of "treat each other's customers as your own".  As part of its initial announcement on 06-Sep-2012 of its partnership with Emirates, Qantas said its joint-service agreement with British Airways, codeshare with SkyTeam's Air France to Paris and codeshare with fellow oneworld carrier Cathay Pacific to Rome would terminate pending approval of the Emirates-Qantas partnership. Its codeshare with Finnair to Helsinki, which Emirates does not serve, unlike Paris and Rome, will remain in place for now. See related article: Qantas and Emirates to codeshare in first alliance shakeup of the season; next: Qatar into oneworld  In a 07-Sep-2012 application, made public on 10-Sep-2012, to Australia's competition regulator, the Australian Competition and Consumer Commission (ACCC), Qantas has further clarified the partnership's impact on partners. Qantas' codeshare with SkyTeam's Kenya Airways will end. Qantas coded on Kenya's flights from Bangkok to Nairobi while Kenya coded on Qantas' flights from Bangkok to Sydney. Qantas will also discontinue placing its code on services operated by oneworld's Iberia, which like British Airways has IAG as its parent company but was not part of the British Airways-Qantas JSA. Iberia, however, will continue for now to place its code on Qantas services. Qantas is still open to British Airways codesharing on Qantas services from Bangkok, Hong Kong and Singapore to Australia (but without any price or capacity coordination). Qantas expects to continue codesharing on BA to points not served by Emirates. Emirates and Qantas ask for global approval for partnership

While the partnership does not currently plan to touch South Africa, South America or North America, where Qantas has deep relationships with South African Airways, LAN and American Airlines respectively, Emirates and Qantas are seeking approval to potentially enact their partnership globally. (Some air traffic rights adjustments will be needed.) They give the justification that global permission will "preserve maximum flexibility in a rapidly changing international environment". Emirates' Dubai hub has no geographic advantages to link Australia with South Africa, South America or North America,...
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