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Fri 31 Aug 2012 10:25 AM

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Emirates, Qantas deal 'to be done next week'

Reports suggest codeshare deal between airlines will be approved as early as next week

Emirates, Qantas deal 'to be done next week'
(Getty Images)
Emirates, Qantas deal 'to be done next week'

Australian airline Qantas is expected to ink a codeshare deal with Dubai-based Emirates Airline as early as next week, it was reported on Friday.

Speculation has been rife that Qantas, which is losing money on its international routes, could enter a tie-up with the UAE carrier that would give it greater access to passengers travelling from Dubai.

The Australian reported on Friday that the deal could be completed next week, well ahead of expectations, without citing its sources.

Speaking earlier this month, Emirates chairman Sheikh Ahmed bin Saeed al-Maktoum told reporters that a code-sharing agreement would likely happen within six months, but would not include any revenue-sharing arrangement.

However, Qantas boss Joyce said at the time the airline was in no rush to strike a deal with Emirates.

Depending on how the deal is structured, it will give Qantas passengers access to Emirates' European network of more than 30 destinations while giving Emirates access to Australian passengers outside the capital cities it currently serves.

The move is also seen as countering the advantage Virgin Australia has with its alliance with Abu Dhabi-based Etihad.

The codeshare is part of a plan to turn around the airline’s ailing international operations, which lost $450m last year.

Last week Qantas also cancelled orders for 35 Boeing Dreamliner aircraft.

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procan 7 years ago

Qantas has lost there way, and now have lost there independence to a foreign air line . Qantas Australia Flag ship carrier slowly slips beneath the waves of incompetence. A sad day Oz........:(

Anonymous 7 years ago

Mr. Procan from Canada.....your own Air Canadia which is a rubbish airline in its own right is surviving because your protectionist government, which knows Air Canada (is that how you say it?) is rubbish, is not allowing Gulf airlines like Etihad, Emirates and Qatar more landing slots. Open up the market and Air Canada will be on government life support within 6 months! Qantas is doing what it needs to do without having their government throw road blocks in the plans, unlike your protectionist Canadian law makers.

suresh 7 years ago

Anonymous: Landing rights are normally given on a reciprocal basis. They are exchanged on a destination to destination basis. Foreign airlines can only carry passengers to and fro. "Through" traffic is not allowed. For example : Air India can only bring passengers to Dubai but not carry them further to other western destinations. However Emirates picks up Indian passengers, from 10 cities, brings them to Dubai & after shifting them to another aircraft flies them to Europe & USA. Air Canada can only bring them to Dubai and back. But Emirates will take them from Canada to Australia , China etc. Gulf carriers manage to sign imbalanced contracts with corrupt political leaders in my country India or by pressurizing Canada to give more landing rights to Emirates by making visas tougher for Canadians. Totally immoral, totally unfair. Emirates flies to 10 Indian cities. Where are 10 cities in UAE for Air India to land ? Will Emirates allow others airlines "through" traffic rights ? Huh ?

Stop Moaning 7 years ago

Actually Suresh, Dubai has an open skies policy which allows any airline to land in dxb then carry on to any destination of its choosing. They just choose not too.

So maybe you should think of a better argument, or may I suggest, look inward & criticise your own poorly managed airlines. Air India and Air Canada = garbage.

But I guess it's easier for you to criticise a successful well run company.

procan 7 years ago

Our deeds speak for the themselves we protect our interests , OZ has not protected there's . Air Canada dose not fly to to the Gulf because it is irrelevant. If no flight ever arrived from the Gulf it would not even be noticeable with respect.

Original Joe 7 years ago

Suresh, India is another example of a protectionist government. I don't believe India has allowed Emirates to fly the A380 into any of the Indian markets even though Emirates would fill the flights to capacity most of the time. Why would they fill up? Because Indians and foreigners flying to India would rather fly Emirates. India is doing all it can to protect its own bad airline from the better Gulf carriers.

You can complain all you want but your airlines can fly to Abu Dhabi, Dubai and Sharjah probably as many times a day as you want but I doubt they will because the demand is not there.

To Procan, if Canada opened up the market and allowed Emirates, Etihad and Qatar as many landing slots as they wanted, which would create jobs in Canada, your own Canadian airline would see a huge fall in their customer traffic. Most of my Canadian friends tell me if they had the choice Emirates would be their choice every time over Air Canada.

Dave 7 years ago

Protectionism , or government protection of poor products, services, or companies exist in almost all countries. In some countries it is substandard airlines being protected, while in others it is substandard telecom companies or utility providers.
For that matter , in some countries even selling cars is a protected business , leading to poor customer service and monopolistic pricing of cars. Its amusing therefore, to see people take an imaginary higher ground on protectionism.

Anonymous 7 years ago

Procan, you are clueless....Canada is not protecting its interests, it is protecting their incompetent airline....Air Canada does not fly to the Gulf probably because they don't have the demand from their own citizens who would prefer other airlines....and my last reply to your ignorant comments, if no flights from the Gulf would be not be noticeable then why not allow more flights? Why?? Because they ARE noticeable!! Your government knows if they allow more Gulf flights your own incompetent poorly run air line would lose more customers.

Common Sense 7 years ago

@Stop Moaning - Not sure if what you say is entirely true. As far as i know, to carry passengers onward, you need a very liberal fifth freedom right agreement to be in place between the two countries. Air India can take passengers from UAE to their hub and onwards to destinations within India or Onward destinations like Singapore/Malaysia. Air India cannot (AFAIK) take passengers from Mumbai and ferry them onward to New York with a stopover in Dubai.

@Suresh - no one is stopping Air India from picking up passengers from UAE and flying them to the Far East. The big benefit of the ME carriers is the location (besides superior service, better product etc. etc.) - they can easily connect between any two points in the world.

The debate is similar to IT jobs being outsourced to India. Every time one of the countries decide to put in measures to block outsourcing, the Indian companies complain.

Why not let the markets decide and the weak get weeded out?

In the Know 7 years ago

To Common Sense....a few year ago and for all I know still today, Singapore Airlines would fly from Singapore to Dubai then carry on to Cairo. From Cairo they would stop over in Dubai then carry on back to Singapore. I know people that used to book the Cairo to Dubai leg because the price was about the same as Emirates.