Qantas stakes survival on Emirates deal
Qantas Airways has told the Australian Competition and Consumer Commission (ACCC) that its international operations were in ”terminal decline” and would need a strong partner to survive.
The national carrier said its proposed partnership with Emirates would help it overcome the disadvantages of geography, high cost base and fierce competition.
In their submission requesting approval for the alliance,
Qantas and Emirates said the tie-up would “underwrite the sustainability of Qantas international and to continue to provide substantial benefits to Australia and Australians”.
Qantas and Emirates have proposed a wide-ranging code-sharing arrangement, reciprocal frequent-flyer benefits and joint marketing, pricing and coordination on certain routes.
“The growing magnitude of (Qantas) losses cannot continue,” the submission said.
“It is clear that it is no longer possible for Qantas international to sustainably ‘go it alone’ as an international network carrier.”
Qantas said it is also considering introducing flights on routes to New Zealand it doesn’t currently fly, including Adelaide-Auckland and Perth-Auckland.
Ian Jarrett
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