Emirates and Qantas get interim approval for increased partnership

Australia’s consumer watchdog has authorised the start of coordination or both passenger and freight operations across their respective networks.

According to Australian newspaper the Herald, the Australian Competition and Consumer Commission chairman Rod Sims said the move would allow the carriers to start implementing cooperation because of the long lead time required to market and sell tickets before they begin long-haul services.

He said that in the draft determination issued just before Christmas the ACCC had formed the preliminary view that the public benefits resulting from the alliance were likely to outweigh any public detriment.

"In most regions this detriment is likely to be mitigated by a number of factors, including continued competition from a number of established airlines,'' he said.

The two airlines are banned from cooperating in services between Australia and New Zealand.

Industry analyst Saj Ahmed said: “The decision to give interim approval to the Emirates-Qantas deal allows the airlines to get working on their marketing and sales efforts ahead of their planned tie-up in April. That the regulatory ACCC saw no detriment to the two carriers getting together means that competition is brisk enough to allow other operators to take advantage of Qantas' shift to Dubai to connect at Emirates' home hub.

“That said, Qantas is still the weaker entity in this partnership and Emirates will want to maximise its own strength not only to get the pact ratified for the ten years the pair had originally sought, but also because it will want access to the lucrative trans-Tasman routes operated by Qantas too.

“It's a good start for the pair just a few months after announcing their partnership and ultimately, it's a boon for Qantas customers who'll get to sample and savour the strength of Emirates in Dubai,’ he said

Under the planned arrangement Qantas passengers will fly to London via Emirates' hub in Dubai instead of Singapore. Qantas customers will have access to more than 70 Emirates destinations in Europe, the Middle East and Africa and be able to accrue frequent flyer points on Emirates flights.

The move will also see Australia's national carrier end its longstanding partnership with British Airways on the "Kangaroo Route''. The new route has been nicknamed the "Falcon Route'' after the United Arab Emirates national bird.

British Airways meanwhile is celebrating the inclusion of Qatar Airways in its One World alliance

Back in Australia, Qantas rival airline Virgin Australia opposed the partnership until the two airlines could prove their tie-up would benefit Australian consumers. Virgin has already secured regulatory approval for its alliance with Etihad Airways.