Alliance underway for Qantas, Emirates

Alliance underway for Qantas, Emirates
By admin


Qantas is continuing to target the 2015 financial year as the break even date for its international division despite reporting a six-fold increase in bookings to Europe since its alliance with Emirates went on sale nine weeks ago.

Chief executive Alan Joyce welcomed the early support for its new-look network, but said there were no plans to bring forward its break even timetable for Qantas International.

Speaking at a press conference on Sunday to mark Qantas’s inaugural flight to Dubai – and the official operational launch of its tie-up with Emirates – Joyce said consumers have embraced the greater connectivity to Europe.

He branded the occasion of the alliance launch as “one of the most important days in our 92-year history”.

“Previously we had five one-stop connections into Europe and the UK with our partners, from today we’ll have more than 30,” Joyce said ahead of the departure of QF1 from Sydney to Dubai.

“This partnership has already shown real solid signs for Qantas. We are seeing forward bookings six times what they were under the previous partnerships to Europe.

“There are many things we are doing to build a stronger, better Qantas both in the domestic and international markets. This joint network with Emirates is a key part of tackling the structural challenges that Qantas International is faced with.”

But he ruled out an early return to profitability for the loss-making international business.

“It is still early days. It is only nine weeks of bookings. The response has been amazing and those booking levels are a great first sign,” he said. “They show that people feel that the one stop options into Europe make us truly competitive.

“But in terms of Qantas International’s profitability, we are still sticking with the target of getting the business to break even in the 2015 financial year.

“There is no indication that it will be earlier than that and that’s the plan we are focusing on.”

Along with the European sales increase, the number of Emirates passengers booked on Qantas services is seven times higher than under Qantas’s previous arrangements in the nine week period.

Such a rise is positive news for Australian tourism, Joyce said.

“Emirates for the first time is promoting destinations like Hobart, Cairns and the Gold Coast,” Joyce said.

Along with the expanded network, travelling time with Qantas to Europe’s top 10 destinations has reduced by an average of two and a quarter hours, Joyce said, with direct services via Dubai eliminating the need to travel via London.

In total, Qantas passengers will have one-stop access to more than 65 destinations in Europe, the Middle East and North Africa, he said.

“Our partnership with Emirates is probably the biggest partnership deal we will ever do. It is certainly the most strategic initiative that we will ever do.”

He went on: “Dubai is the best hub for Qantas in the 21st century. It is eight hours flying time from 75% of the world’s population.

"From today we have more than 65 destinations in London and Europe, the Middle East and North Africa that have one stop connections.”

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