QF/EK Tie Up To Be Announced
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QF/EK Tie Up To Be Announced
In a soon to be announced tie up between EK and QF Qantas will relinquish FRA and fly to Dubai(with its own metal) effectively becoming a feeder service for EK
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Qantas silent on talks about Emirates alliance
QANTAS and Emirates remained tight-lipped today over reports that they are talking about a possible alliance, which could see the Flying Kangaroo join the Middle Eastern network. The airlines were making no comment on the discussions, which have been proceeding intermittently after Emirates president Tim Clark last month confirmed his airline had approached Qantas.
The tie-up would see Qantas plugging into the network of its biggest rival, but the alliance that would once have been unthinkable has become more likely as the Australian airline continues to make large international losses, predicting a $450 loss for this financial year.
Prime Minister Julia Gillard said whatever new arrangements Qantas might make, it would remain majority-Australian owned as guaranteed under the Qantas Sale Act.
"Qantas’ commercial arrangements are a matter for it,” she said on ABC radio.
Under a potential agreement, Qantas passengers would have access to the enormous Emirates worldwide network by gaining landing rights in Dubai, which could also see the Australian airline drop its remaining flight into continental Europe, to Frankfurt in return for the chance to offer passengers a vast network without having to travel via London.
Spokesmen for each of the airlines said they did not discuss commercial arrangements, but Mr Clark has made it clear Emirates is not interested in taking any ownership share in Qantas.
Qantas has been withdrawing from loss-making international routes, but an Emirates deal would likely see England as its only remaining destination in Europe.
A tie-up with Emirates would complete an expanding network of international co-operation for Qantas, which has partnership deals with American Airlines through its Dallas hub, but it is uncertain if an Emirates deal could spell the end of the Qantas-British Airways tie-up.
Qantas has been seeking to roll back loss-making routes, handing its London-bound services via Bangkok to One World network partner British Airways and co-operating with another partner, Cathay Pacific, through Hong Kong.
The need to gain far better direct access to European destinations outside London for Qantas passengers has seen the airline talking to various potential partners, with expansion of a tie-up with Malaysian stalling due to that airline’s financial woes.
The push of Qantas CEO Alan Joyce to start up a premium-quality Asian airline has also stalled, after Malaysia pulled out of talks.
Since Emirates first flew to Australia in the late 1980s it has gradually made deep inroads into the Qantas market, with the international share of passengers out of Melbourne dropping by around 18 per cent.
The last Middle Eastern airline with which Qantas had an arrangement was Etihad, but that low-level code sharing deal, which was highly conditional, broke up in 2010.
Etihad executives later struck a full deal with Virgin Australia, which now has tie-ups with Delta, Etihad, Singapore Airlines and Air New Zealand that cover more than 200 destinations globally.
QANTAS and Emirates remained tight-lipped today over reports that they are talking about a possible alliance, which could see the Flying Kangaroo join the Middle Eastern network. The airlines were making no comment on the discussions, which have been proceeding intermittently after Emirates president Tim Clark last month confirmed his airline had approached Qantas.
The tie-up would see Qantas plugging into the network of its biggest rival, but the alliance that would once have been unthinkable has become more likely as the Australian airline continues to make large international losses, predicting a $450 loss for this financial year.
Prime Minister Julia Gillard said whatever new arrangements Qantas might make, it would remain majority-Australian owned as guaranteed under the Qantas Sale Act.
"Qantas’ commercial arrangements are a matter for it,” she said on ABC radio.
Under a potential agreement, Qantas passengers would have access to the enormous Emirates worldwide network by gaining landing rights in Dubai, which could also see the Australian airline drop its remaining flight into continental Europe, to Frankfurt in return for the chance to offer passengers a vast network without having to travel via London.
Spokesmen for each of the airlines said they did not discuss commercial arrangements, but Mr Clark has made it clear Emirates is not interested in taking any ownership share in Qantas.
Qantas has been withdrawing from loss-making international routes, but an Emirates deal would likely see England as its only remaining destination in Europe.
A tie-up with Emirates would complete an expanding network of international co-operation for Qantas, which has partnership deals with American Airlines through its Dallas hub, but it is uncertain if an Emirates deal could spell the end of the Qantas-British Airways tie-up.
Qantas has been seeking to roll back loss-making routes, handing its London-bound services via Bangkok to One World network partner British Airways and co-operating with another partner, Cathay Pacific, through Hong Kong.
The need to gain far better direct access to European destinations outside London for Qantas passengers has seen the airline talking to various potential partners, with expansion of a tie-up with Malaysian stalling due to that airline’s financial woes.
The push of Qantas CEO Alan Joyce to start up a premium-quality Asian airline has also stalled, after Malaysia pulled out of talks.
Since Emirates first flew to Australia in the late 1980s it has gradually made deep inroads into the Qantas market, with the international share of passengers out of Melbourne dropping by around 18 per cent.
The last Middle Eastern airline with which Qantas had an arrangement was Etihad, but that low-level code sharing deal, which was highly conditional, broke up in 2010.
Etihad executives later struck a full deal with Virgin Australia, which now has tie-ups with Delta, Etihad, Singapore Airlines and Air New Zealand that cover more than 200 destinations globally.
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I don't see why EK would even consider this option. What's in it for them? I'm not a glass half empty type of guy but if I'm looking at the glass from an EK point of view, it's almost bone dry!
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Is it coincidental this leaked at around the same time as the staff survey results? The Rat has form for this and seeing as there was no distraction with parliamentary processes, they probably needed to create their own diversion especially with the Jetstar safety culture issues that should have CASA's attention but probably wont.
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The pressure is on
Has Qantas actually said anything about this or is it all just media speculation?
Qantas needs Emirates badly, but will this save its CEO?
Qantas needs Emirates badly, but will this save its CEO? | Plane Talking
The outing of a yet to be finalised closer commercial relationship between Qantas and Emirates in today’s AFR can be read as the deal that may give Qantas group CEO Alan Joyce more time to save his job, or, prove to be the final straw when it comes to badly burned investors and employees in an airline in crisis.
Qantas needs Emirates badly, but will this save its CEO? | Plane Talking
The outing of a yet to be finalised closer commercial relationship between Qantas and Emirates in today’s AFR can be read as the deal that may give Qantas group CEO Alan Joyce more time to save his job, or, prove to be the final straw when it comes to badly burned investors and employees in an airline in crisis.
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Is it coincidental this leaked at around the same time as the staff survey results? The Rat has form for this and seeing as there was no distraction with parliamentary processes, they probably needed to create their own diversion especially with the Jetstar safety culture issues that should have CASA's attention but probably wont.
It is no coincidence.
Survey was given to Fin review. At 1430 yesterday they called Qantas for comment. Now, in the same paper they get another reporter to talk of this deal that is in the making to grab the headline but you will note that Qantas haven't really made any comments about it.
I reckon a deal with Emirates would be great. They fly North/West of Dubai, we do all the Australian legs. It either won't happen because it is horsesh!t or they will hand our rights to Europe over and get nothing in return.
Australia is a huge market for in and outbound tourism, I'm sure the benefits are mutual for EK. A massive domestic feeder network, former Oneworld passegners directed via Dubai and onwards. A kick in the pants for SQ and CX it would be.
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Well that will make for interesting viewing. Ek, will want big bucks for any dollar they put in, and the Australian attitude of "get stuffed we will do it our way" should make for confortable seat and popcorn time. If it happens get ready to fly your asses off lads.
Considering AJ appears to be copying everything JB is doing at Virgin (no Allan, no one actually thinks you come up with any good ideas), I would suggest that a tie up with EK would pretty much remove the need for any QF metal to fly west. QF could shrink international and just fly the Pacific, along with a few token flights here and there. Grab whatever commission (or whatever they get in a tie up) EK throws your way and focus on domestic. I wonder what wonderful things AJ can come up with when he shifts his focus onto domestic...
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Domestic strategy is obvious...take out Tiger, because thats about all they are capable of.Sad but true, they have no idea how to actually grow or be innovative. Joining EK (if it happens) is one step below gifting routes to a friend (BA), now they are giving them to a fierce competitor.
Last edited by rodchucker; 26th Jul 2012 at 03:18.
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From the ASX.
QANTAS RESPONSE TO MEDIA REPORTS
SYDNEY, 26 July 2012: Qantas today confirmed it is in discussions with a number of airlines about
potential alliances.
These airlines include Emirates, among others.
Strengthening alliance partnerships is one of the four pillars of the Qantas Group's five-year strategy,
announced in August 2011.
At any one time Qantas may be in contact with a wide range of companies about potential
commercial cooperation.
Qantas' policy is not to comment on the nature or status of these discussions. Should Qantas have
a material announcement to make, it would be disclosed to the market in the normal way at the
appropriate time.
QANTAS RESPONSE TO MEDIA REPORTS
SYDNEY, 26 July 2012: Qantas today confirmed it is in discussions with a number of airlines about
potential alliances.
These airlines include Emirates, among others.
Strengthening alliance partnerships is one of the four pillars of the Qantas Group's five-year strategy,
announced in August 2011.
At any one time Qantas may be in contact with a wide range of companies about potential
commercial cooperation.
Qantas' policy is not to comment on the nature or status of these discussions. Should Qantas have
a material announcement to make, it would be disclosed to the market in the normal way at the
appropriate time.