Skip to main content

Ailing Qantas announces alliance with Emirates

By Paul Armstrong, CNN
September 6, 2012 -- Updated 1507 GMT (2307 HKT)
Frequent flyers with Emirates and Qantas will be able to enjoy benefits with both airlines.
Frequent flyers with Emirates and Qantas will be able to enjoy benefits with both airlines.
STORY HIGHLIGHTS
  • Australian carrier will transfer its hub for European flights from Singapore to Dubai
  • Qantas CEO Alan Joyce says the new partnership will benefit frequent flyers
  • Emirates: Deal provides passengers with additional connectivity in Australia
  • Qantas' international arm is struggling with losses amid soaring costs

Hong Kong (CNN) -- Qantas has agreed a 10-year partnership with Emirates, as it seeks to revitalize its ailing international business.

As part of the deal, the Australian carrier will transfer its hub for European flights from Singapore to Dubai from April next year -- subject to regulatory approval.

Qantas said its daily Airbus A380 services to London from Melbourne and Sydney will transit via Dubai's Terminal 3, the world's only purpose-built A380 terminal.

More: 10 of the world's top airport lounges

"This is a partnership of independent peers, based on shared standards and aspirations," said Qantas CEO Alan Joyce at a joint press conference with Emirates President, Tim Clark, in Sydney Thursday.

"We have agreed to join forces to give our customers the most comprehensive premium travel experience on the planet.

"We will be poised to deliver the best in networks, frequencies, lounges, loyalty programs and customer experience."

IATA: Bleak airline profit forecast
Profits dive for Australia's Qantas
Qantas flying again after strike

He added that the deal would not involve equity investment on either side.

Joyce said the new partnership would benefit its frequent flyers in particular, with the airlines offering reciprocal access to tier status benefits, including end-to-end recognition of customers, lounge access and priority check-in and boarding.

The deal comes at a time when the Australian carrier's international business continues to hemorrhage money. Earlier this month Qantas announced its first annual loss since being privatized in 1995 -- $256 million for the year to June 30.

It also scrapped an order worth $8.5 billion for 35 Boeing 787 "Dreamliner" jets, as it battles the effects of soaring fuel prices and industrial action.

Emirates, which has itself experienced the crippling effects of rising fuel costs, also welcomed the deal.

"The time was right for developing a long term, future forward partnership with Qantas, the iconic Australian airline," Clark said.

"Since our first flights began in 1996, Australia has long been a popular destination for Emirates leisure and business travelers, making it one of the top three destinations in our network.

"By establishing this partnership we are providing our passengers with additional connectivity in Australia and the region and the ability to utilize enhanced frequent flyer benefits, and have access to premium lounges for an exceptional travel experience," he added.

Shares in Qantas rose by almost 5% on news of the alliance.

ADVERTISEMENT
Part of complete coverage on
July 16, 2014 -- Updated 1634 GMT (0034 HKT)
With cyberattacks on the rise and here to stay, it's a modern-day challenge for people and businesses to get smarter about preventing them.
July 20, 2014 -- Updated 1524 GMT (2324 HKT)
Evidence points to pro-Russian separatists as perpetrators of the attack and Vladimir Putin is facing uncomfortable questions, David Clark writes.
July 3, 2014 -- Updated 0902 GMT (1702 HKT)
Macau has overtaken Switzerland in the wealth stakes, being named the world's fourth richest territory by the World Bank.
July 18, 2014 -- Updated 1447 GMT (2247 HKT)
Saudi Arabian Bateel brand is best known for its delectable dates but it now has more than a dozen cafes and a new bakery in the works.
July 17, 2014 -- Updated 1100 GMT (1900 HKT)
A British nanotech company has created what it says is the world's darkest material. It is so dark the human eye can't discern its shape and form.
July 16, 2014 -- Updated 1602 GMT (0002 HKT)
Jibo robot is designed to be an organizer, educator and assist family members. CNN's Maggie Lake met him and says she was impressed with his skills.
July 18, 2014 -- Updated 2109 GMT (0509 HKT)
American burger joints have sprung up all over London, but how to know which ones are best? CNN's Jim Boulden investigates.
June 18, 2014 -- Updated 1222 GMT (2022 HKT)
Sandwiched in between Iraq and Syria, Jordan's destiny seems to be one of a constant struggle for survival. John Defterios explains.
June 18, 2014 -- Updated 1502 GMT (2302 HKT)
At the last football World Cup, it was all about 3D. This time around, it's nothing less than 4K.
July 16, 2014 -- Updated 1058 GMT (1858 HKT)
Bob Mazzer has photographed inside London's Tube network for 40 years. He's captured history.
July 18, 2014 -- Updated 1712 GMT (0112 HKT)
Exotic animals are becoming a profitable business opportunity for Nicaraguan entrepreneurs. CNN's Rafael Romo reports.
June 13, 2014 -- Updated 1529 GMT (2329 HKT)
Iraq produces 3.3 million barrels per day and has the world's fourth-largest oil reserves. But the current crisis is putting all this in danger.
June 18, 2014 -- Updated 1222 GMT (2022 HKT)
Sandwiched in between Iraq and Syria, Jordan's destiny seems to be one of a constant struggle for survival. John Defterios explains.
June 16, 2014 -- Updated 1314 GMT (2114 HKT)
The gas standoff between Russia and Ukraine could have a knock-on effect on Europe. Explore this map to find out why is the EU nervous.
July 16, 2014 -- Updated 1058 GMT (1858 HKT)
Bob Mazzer has photographed inside London's Tube network for 40 years. He's captured history.
June 17, 2014 -- Updated 1206 GMT (2006 HKT)
The UK capital promotes its tech stars and shows it can compete with Silicon Valley. Here are five companies that pitch to make it big.
ADVERTISEMENT