Qantas agrees alliance with Emirates
Australia’s struggling Qantas Airways has agreed to a 10-year alliance with Dubai’s Emirates, a key step in the carrier’s efforts to shore up its loss-making international business.
Qantas will replace Singapore with Dubai as its hub for European flights from March 2013 and coordinate pricing, sales and schedules with Emirates under the partnership unveiled this morning.
The Australian airline will end its existing relationship with British Airways at the same time as a result of the new alliance.
“A key objective is to make Qantas International strong and viable, and bring it back to profitability,” Qantas chief executive Alan Joyce said. “This partnership will help us do that.”
Joyce said the airline remained committed to reaching break-even in its international business in the 2015 financial year.
He declined to comment on analysts’ estimates that the alliance would save Qantas A$90-100m (£58-64m) before taxes annually, or provide the airline’s own forecasts for cost savings.
The long-anticipated deal was received warmly by investors, with Qantas’ share price surging more than six per cent in early trade.