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Emirates the 'missing piece in earnings bridge' for Qantas
From the article:
The code-share agreement is believed to include route swaps whereby Emirates would operate the majority of flights on some routes, such as those out of Perth to Europe.
Rumour has it Perth & Adelaide to go to EK
"We expect an agreement to be announced shortly, with the two carriers likely to code-share over Dubai into Europe, as well as on certain Tasman and Asian services," he said in note today.
Rumour was EK to operate code shares across the Tasman.
The code-share arrangement would also free up additional Boeing 737 aircraft for Qantas, as well as allowing it to accelerate the retirement of up to six older 747 jumbos.
Rumour was EK accross the Tasman freed up B737's from Jetconnect to return to Mainline.
Despite the prospects of a deal with Emirates, Mr Shaw said Qantas still faced challenges in the medium term in improving its network in Asia to help it to compete against Cathay Pacific and Singapore Airlines.
JQ LCC widebody operations to Asia can't compete with the established Asian Premium players.
"Changing the flight timings will be a positive move, but the existing array of partners represents a lack of consistency in product and quality across the Asian network," he said.
Qantas customers want to fly QF, not codeshared on Jetstar International services.
Qantas also faces a short-term hit to its earnings in the domestic market in the new financial year as it seeks to repel the advances of Virgin Australia. The latter is seeking to grab a bigger share of the lucrative corporate travel, which Qantas has dominated since Ansett's collapse in 2001.
Qantas needs to return it's A330's to the Domestic market with a consistent product offering. No good to a have passenger fly east coast to Perth on an A330 & return on the B767 with the crappy cabin. The 767 interior upgrade is a stop measure until it's retired.