Emirates and Qantas deal gets final nod

Dubai: Emirates on Wednesday said it has received the final approval from Australia’s competition regulator to form a five-year alliance with Australian carrier, Qantas, following a six month review process.

Welcoming the Competition and Consumer Commission’s (ACCC) approval, Emirates said in a statement that the partnership will provide customers with a seamless international and Australian network, frequent flyer benefits and efficient travel experiences.

“Dubai is a leading global hub and through it, our two airlines will connect Australia to Europe, the UK and Northern Africa more smoothly than ever before,” Tim Clark, President, Emirates Airline, said in a statement.

Added Alan Joyce, Chief Executive Officer of the Qantas Group: “Customers are already responding very strongly to the joint network that Qantas and Emirates have built, and to the frequent flyer benefits that extend across it, with a significant increase in bookings.”

As a part of the deal, from Dubai passengers can connect to 65 one-stop destinations in Europe, North Africa and the Middle East with almost all of these connections to Europe and most to North Africa available within four hours of landing in Dubai, Emirates said.

It added that preparations for the partnership, including Qantas’ new operational hub in Dubai, are now complete with the first flight scheduled from Sydney to London (via Dubai) on March 31.

Fundamental change

Commenting on the scale of the deal, analyst Andrew Charlton of Aviation Advocacy, told Gulf News that the partnership is “huge” for air transport. “It is reshaping the map and is a fundamental change to the way Qantas sees its future and the role that the Gulf carriers are going to play. For Qantas, it is the obvious way to serve Europe, by joining, not trying to beat them, and for Emirates it is a way to ensure that it remains a huge global presence.”

Though Emirates and Qantas were seeking a 10-year alliance, the ACCC only granted approval for half the years requested, as it reportedly feared the deal could result in higher airfares.

“Both airlines will be disappointed that the ACCC did not grant them the a 10-year deal as they had hoped, but even with the approval of a five year pact, there is no reason why the ACCC would not extend this when the time is right,” says analyst Saj Ahmad of StrategicAero Research.

Further, Emirates customers will now be able choose from 32 Australian destinations that Qantas operates to including Canberra, Port Lincoln, Cairns and Hobart, opening up Australia to passengers from all over the Emirates network.

However, the Australian regulator has reportedly put special conditions on New Zealand flights requiring that the two carriers continue to compete with each other on flights between Australian and New Zealand.