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Emirates, Etihad could rethink alliances, says BA chairman

Sir Martin Broughton sees thaw in relations, says “consumers like Middle East airlines”

Sir Martin Broughton, chairman, British Airways.
Sir Martin Broughton, chairman, British Airways.

Emirates and Etihad are likely to reconsider their stance on joining a global airline alliance following Qatar Airways’ decision to join Oneworld, the chairman of British Airways has told Arabian Business.

Qatar Airways’ announcement this week that it will join Oneworld and Etihad’s codeshare deal with Air France-KLM marks a thawing of relations between legacy carriers and Gulf airlines, said Sir Martin Broughton.

“I think it will make them look at it again,” he said. “I think Etihad would be much keener to do it [than Emirates]. I would think Etihad are quite likely to join but Emirates will look at it.

“Emirates are the ones which have systematically stated that they are not interested in an alliance,” he added.

Well-established European carriers have been critical of Gulf airlines, which have grown into formidable competitors in recent years, enticing long-haul passengers with newer aircraft and efficient connections.

The three big Gulf carriers have announced several global partnerships in recent months. Etihad Airways on Monday announced a codeshare agreement with KLM-Air France in what it said would be the first phase of a larger strategic partnership between the two carriers.

The agreement, which will begin October 28, will see both airlines offer joint codes on destinations in Europe, the Middle East, Asia and Australia.

The Abu Dhabi-based carrier, which owns stakes in Virgin Australia, airberlin and Air Seychelles, said its partnerships “are delivering a major source of revenue growth” for the airline.

“This year to date, they are providing 18 percent of our revenues and will be a major contributor to our sustained profitability growth this year and into the future,” said James Hogan, president and CEO of Etihad Airways.

Dubai-based Emirates Airline in September signed a ten-year alliance with Qantas Airways. The deal, which is currently under evaluation by Australia’s competition watchdog, will see the two carriers share airport lounges, frequent flyer programmes and Qantas replace Singapore with Dubai as its hub for European flights.

The flurry of deals in recent months, marks a thawing of relations, said Sir Martin. “The most critical of all has been Qantas and mostly about Emirates and now they’ve done a joint business together so I think a thawing is a good way of expressing it,” he said.

“Certainly from our perspective we need to think about what the consumer wants, rather than how we feel about them and the consumer likes the Middle East airlines. We’d be happy to have that as an alliance partners providing that’s what the consumer wants,” he added.

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