Qantas, Emirates lodge formal submission

Qantas, Emirates lodge formal submission
By admin

Qantas and Emirates have spelt out the consumer benefits of their alliance in a formal submission to the competition regulator with the airlines seeking interim approval to begin stitching the commercial partnership together.

The carriers told the Australian Competition and Consumer Commission (ACCC) that the tie-up will lead to improved connectivity, greater choice of travel from Australia to Europe, Middle East and Africa and enhanced benefits for frequent flyers.

It will also spark product innovation, tourism opportunities and create jobs, while rival airlines will be provoked into  introducing more competitive fares and product.

“The routes are highly competitive and will continue to remain constrained by aggressively expanding competitors,” the submission said.

Qantas and Emirates also gave “formal commitments” over the alliance’s trans-Tasman operations, insisting it will not reduce capacity. Qantas said it is considering the launch of flights between Adelaide and Auckland and Perth and Auckland.

The submission said the “benefit-sharing” model will also enable Qantas to improve its services into Asia with re-timed flights while Emirates’ “long term growth strategy will be materially enhanced and expedited without Emirates taking any equity stake in Qantas”.

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