Qantas has ended its joint business arrangement with IAG to sign a new global partnership with Emirates.
The Australian carrier has signed a 10-year agreement with Emirates that will see Qantas re-route its European flights through Dubai. The two airlines will also codeshare on a range of routes, as well as collaborating on pricing, sales and scheduling.
Qantas will now launch daily Airbus A380 services from both Sydney and Melbourne to London, via Dubai. This means that together Emirates and Qantas will offer 98 weekly services between Australia and Dubai. The tie-up will however, see Qantas restructure its Asian network.
“We currently have an Asian flying schedule based on travelling via Asia to Europe, but our Australian business customers want better access to Asia, and we have been looking to address this for some time,” said Qantas’ Group CEO, Alan Joyce. “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.”
Changes announced so far include the retiming of flights to Singapore and Hong Kong to enable more ‘same day’ connections across Asia, and Qantas’ withdrawal from the Singapore-Frankfurt route.
Willie Walsh, CEO of IAG said the joint business had ended on amicable terms and supported its decision to work with Emirates. “The world has changed since 1995 when the joint business started. This is a small part of our overall network and this move fits in with changes in our global strategy,” he added. “Asia has become a key market focus for IAG and we’re talking to a number of airlines about alternative options for us”.