Grim future for QF without Emirates

Grim future for QF without Emirates
By admin

Qantas will become a shell of an airline if its proposed alliance with Emirates is knocked back, a scenario which is “against the national interest”, competition regulators have been warned.

The carrier said it may be forced to withdraw one its two remaining London services “in the short term” while the long term ramifications will see Qantas pull out of Europe altogether in the event of its plans being blocked.

It’s Frankfurt service will be axed irrespective of the outcome, Qantas added.

In a submission to the Australian Competition and Consumer Commission (ACCC), Qantas said it needed the Emirates partnership to “arrest the terminal decline of the international operation”.

“While Qantas may historically have been regarded as ‘dominant’, this is not the reality,” the airline told the ACCC. “To the contrary, it is clear that it is no longer possible for Qantas International to sustainably go it alone as an international network carrier. The growing magnitude of losses cannot continue.”

Should the alliance be rejected “Qantas International will only invest in new aircraft and operate to those ports where it can make an appropriate return on capital – this will not include Europe”.

Qantas has been hampered by its geography, and been unable to match the regulatory and economic advantages of competitors, the submission said.

Without an alliance with Emirates, Qantas will become “increasingly marginalised” and in the medium term pull off underperforming routes and “retreat to a virtual network”.

“Under such a scenario, Australians will lose the benefit of Qantas operating a strong locally-based international airline,” it said. “This is not in the national interest”.

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