BA and Qantas announce divorce
British Airways and Qantas will terminate their joint business from March 31 2013.
This follows Qantas’ announcement that it is entering a global partnership with Emirates.
The joint business was established in 1995 to enable close commercial cooperation on Qantas and BA services between the Australia and the UK.
The airlines will continue to work together as part of the oneworld alliance and through bilateral codeshares.
Qantas chief executive Alan Joyce said: “Over the past 17 years the joint business with British Airways has been central to the Qantas network.
“However, global operating conditions have changed and partnership with Emirates is the right strategy for Qantas.”
Willie Walsh, chief executive of BA parent IAG, said: “We’re ending the joint business on amicable terms and support Qantas’ decision to work with Emirates.
“This is a small part of our overall network and this move fits in with changes in our global strategy.
“Asia has become a key market focus for IAG and we’re talking to a number of airlines about alternative options for us.
“Qantas has made it clear that its international performance has been weak and the termination of the joint business won’t have any negative impact on IAG’s financial targets.”
Qantas will transfer its hub for European flights from Singapore to Dubai as part of a 10-year commercial agreement with Emirates.
The agreement will cover networks, frequencies, lounges, loyalty programmes and customer experience.
There will be no equity investment by either Qantas or Emirates.
Qantas’s daily Airbus A380 services to London from Melbourne and Sydney will transit via Dubai’s Terminal 3, the world’s only purpose-built A380 terminal.
Qantas and Emirates will have exclusive use of the terminal.
Qantas will no longer service Frankfurt as a hub in Europe.
Qantas and Emirates will provide reciprocal access to tier status benefits which includes end-to-end recognition of customers, lounge access, priority check-in and boarding and more.
“The time was right for developing a long term, future forward partnership with Qantas, the iconic Australian airline,” said Tim Clark, president of Emirates.
Qantas will now restructure its Asian network by increasing dedicated capacity to Singapore, and re-time flights to Singapore and Hong Kong to enable more same day connections across Asia.
The airlines will submit applications for authorisation to the Australian Competition and Consumer Commission (ACCC) and other relevant regulatory authorities, in order to begin commercial planning.
Subject to regulatory approvals, it is anticipated that the partnership arrangements will take effect in April 2013.
By Ian Jarrett, TravelMole Asia
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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