Emirates and Qatas welcome ACCC decision on partnership

Qantas and Emirates have welcomed the Australian Competition and Consumer Commission's (ACCC) approval of their partnership for a period of five years.

The partnership will provide customers with a seamless international and Australian network, frequent flyer benefits and world-class travel experiences.

The decision follows a six-month review process by the ACCC that included several rounds of public submissions, a pre-decision conference and a comprehensive analysis of the benefits the partnership will deliver to customers.

Chief executive officer of the Qantas Group Alan Joyce said the decision was great news for Australian travellers and local tourism, as well as the airline itself.
“Qantas is an Australian icon and the future of its international business is much brighter with this partnership,” said Joyce. “Customers are already responding very strongly to the joint network that Qantas and Emirates have built, and to the frequent flyer benefits that extend across it, with a significant increase in bookings.”

Qantas and Emirates will offer a combined total of 98 flights a week between Australia and Dubai, with Qantas continuing to operate daily services from Melbourne and Sydney through to London.

President of Emirates Tim Clark, said: “This is a truly game-changing partnership that brings together two of the world’s best airlines and offers some of the highest quality travel experiences. Dubai is a leading global hub and through it, our two airlines will connect Australia to Europe, the UK and Northern Africa more smoothly than ever before.”

Alayst Saj Ahmad commented: “The approval by the ACCC to allow Emirates and Qantas for their partnership paves the way for customers to use Dubai as a one-stop-hop between Europe and Australia. Both airlines will be disappointed that the ACCC did not grant them the a ten year deal as they had hoped, but even with the approval of a five year pact, there is no reason why the ACCC would not extend this when the time is right.

“For Qantas, this is a great move. Qantas has been battered by the efficiencies and world class products offered by its rival Arab airlines and is a loss making airline struggling to keep its head above water. Until this deal with Emirates came about, Qantas had zero presence in the Middle East - an almost suicidal stance given the swathe of growth in the GCC region. But tying up with Emirates not only allows them to make use of Emirates dedicate terminal hub in Dubai, it also allows them to better connect passenger via to and through Dubai.”

Ahmad added: “What this deal does show is that Emirates is a fantastically airline that has frankly embarrassed Qantas into submission for this tie-up. For all the years that Qantas has lambasted Emirates with unfounded allegations about getting free or discounted fuel, none of which has ever been proven by Qantas, it just shows that Emirates is a big power broker that cannot be ignored. Qantas found that out the hard way and there is no escaping the fact that they are the weak party in this partnership.”