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FINANCIAL NEWS
Australia approves a 5-year alliance between Emirates and Qantas
20 Dec 2012
(MENAFN) The Australian Competition and Consumer Commission has approved an alliance between national flag carrier Qantas Airways and Dubai’s Emirates for only five years instead of the ten that had been sought, Reuters reported.
The alliance, which shifts Qantas’ hub from Singapore to Dubai for European flights, will enable Qantas to cut loss-making international routes and focus on its profitable domestic and budget operations.
The Australian competition watchdog also set some conditions on routes between Australia and New Zealand, saying full approval could allow the pair to reduce or limit growth in capacity in order to raise airfares for those flights.
Qantas CEO Alan Joyce said on Thursday that the airline would seek to respond to watchdog’s concerns about Australia-New Zealand routes.
The alliance agreement, announced in September, is deeper than a straightforward code-share arrangement, but stops short of a global revenue-sharing deal or equity injection from either side.
The regulator’s final decision is due in March.
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