Emirates and Qantas deal done just days before Australian airline's first flight to Dubai

Dubai: Australia’s competition regulator granted approval on Wednesday to a five-year alliance between Emirates airline and Australia’s national flag carrier Qantas Airways Ltd, just days before the first Qantas flight is due to transit through Dubai.

The Australian Competition and Consumer Commission (ACCC) said its approval was conditional on the airlines maintaining at least their pre-alliance capacity on routes between Australia and New Zealand amid concerns about reduced competition.

Welcoming the 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, said in a statement.

The ACCC, which had already halved the desired alliance time frame from 10 years, said it believed the tie-up as a whole would result in “material, but not substantial” public benefits through enhanced products and improved operating efficiency. 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.

Analysts expect the pair to explore further cost savings through catering, ground work, maintenance and procurement synergies.

The tie-up has been welcomed by the government, airports and tourism organisations but rival Virgin Australia Holdings Ltd, which operates its own alliance with Etihad, has argued the deal is too broad and would entrench Qantas’ dominant position in the domestic and corporate market to the detriment of Australian passengers.