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Qantas-Emirates deal coming next week — report

written by australianaviation.com.au | August 31, 2012
Dubai-based Emirates has said a tie-up with Qantas will not include revenue sharing.

Qantas is expected to finalise a codesharing alliance with Emirates as early as next week, The Australian has reported.

Details of the deal have yet to be confirmed but it will likely include Qantas services to Dubai and possibly the end of Qantas’ money-losing Frankfurt route, the newspaper said.

The codesharing deal is part of an effort to turn around Qantas‘ international operations, which lost $450 million last year. It would also counter rival Virgin Australia’s code sharing deal with Etihad.

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14 Comments

  • Steve B

    says:

    Qantas have played the patriotic card for 10 years too long. Most of us who travel want value. So Emirates gets our business. Qantas executives just don’t get it.

  • James from Sydney

    says:

    Steve B I don’t think it’s the executives that don’t get it. Unions don’t seem understand exactly what you said. Australians want value = we don’t want to travel with an airline with high costs. Unions killed Ansett and they will kill QANTAS.

  • Ben

    says:

    I think you are both right. Management has been playing the patriotic card and the unions have been displaying an enormous amount of ignorance. Tony Sheldon is a burden on this country.

    I have been a loyal Virgin flyer for the past year now. I left Qantas when the industrial strikes began but with a product like Virgins…. I decided not to go back

  • Observer

    says:

    Anocement on Thursday.

  • Brendan

    says:

    James,
    Allan Joyce was with ansett when air newzealand was transferring fuel costs onto ansett when it went under, Joyce is now transferring jetstar japan, jetstar hong kong, jetstar pacific etc,costs onto qantas international, poor old qantas is getting done over by Mr Joyce. Not the unions, they just want to save a great company,
    Remember unions are made up of members (qantas staff) and those members see what is really happening, not just the spin put out to the news station.
    Joyce is the problem.

  • Hutch

    says:

    Brendan,

    If we are looking at history, you’ll note the unions have had problems with every QF CEO – not just Joyce.
    Joyce’s management style can be questioned, but it would be pretty ignorant to claim that unions do not share a fair portion of the blame for QF’s situtation.

    In my view, currently neither side can say they want to save a great company. The unions need to realise and adjust to the moden world Qantas now must operate in and QF management need to do a better job at looking at planning for the medium term (787’s etc) and enhancing relationships with staff.

    The problem with QF is that it has major structural problems for the current aviation market – you do not need to work for Qantas to see that. But I do note only one side actually seems to want to change and its not the union. The changes being implemented are not perfect from my view, but its better than not doing anything.

  • Ben

    says:

    Brendan. Wow I hvent read that much propaganda in a long time!

  • pez

    says:

    Brendan you have got to be kidding? You’re clearly a member of that union, but seriously, as Hutch says, at least the company is trying. Unions started out as a way to preserver employee rights, now they merely exist to secure their own existance. When they do to Qantas what they helped do to Ansett, maybe then (but not likely) will they see the error of their ways.

    I just hope it never comes to that.

  • lwf

    says:

    Brendan is on the money. The unions have to provide more productivity and soon or more of their jobs will (quite rightly) be exported. This is what was to be expected when the Govt decided to open the skies.

    Qantas mgt also was painfully slow in recognising that their product was uncompetitive. No good justifying their position by pointing to the B787 and A380 delays, everyone inside and outside of the industry knew that significant delays were almost certain with both and QF sat on its hands instead of immediately putting in place an interim measure.

    I dont think all is lost for QF because of its safety record. When the chips are down, there’s nothing better than a Qantas pilot up front (QF32). But both QF mgt and the unions will need to pull their finger out real quick to save a company that the shareholders, the staff (as distinct from unions) and the public want saved.

    I have been a QF Platinum flyer for years (all in J class), but after the last two intercon flights in the front on a Virgin A330……….

  • Paul

    says:

    I have a “certain airline “manager in my soccer team who was crying because he missed his morning coffee because it took too long to let someone go.
    Stop kidding yourself.

  • Grumpyoldfart

    says:

    This is great news. Brring it on.

  • Blind Monkey

    says:

    I was recently involved in discussions with Victorian based QF maintenance staff that at the time were about to be made redundant. It amazed me that so few were interested in applying for some 200+ vacancies in Queensland. Then there were those that new of, or had been in discussions with Middle East airlines offering US$200k packages but weren’t interested either. I appreciate that moving house is not for everyone for a variety of reasons.

    But it was the ‘set in concrete’ style thinking that caught my attention. The QF long termers, and there was a lot of them, were still of the two airline policy/government owned airline mindset and had plainly not moved with the times. The culture was old, and it rapidly became plain to me that it was for the latter reasons that QF management moved maintenance to Brisbane. In my view if was centred around breaking the old-school culture. Something that wasn’t going to happen anytime soon with the previous Victorian maintenance workforce.

    QF simply won’t survive if the status quo remains. The about to be announced QF-EK deal is the sort of thing QF needs to be doing to survive. In my experience the union movement, while necessary, is largely made up of dinosaurs, and officials wanting to play party (i.e. ALP) politics. and not all things are done in the name of members’ conditions and benefits. Just look at the HSU as an example.

  • pez

    says:

    Blind Monkey, interesting (but hardly surprising) stuff.

  • Rahayu

    says:

    I’d add to your list that Air New Zealand’s CEO Rob Fyfe is the only major business ledear who is prominently and consistently seeking action on the major environmental issues facing business in NZ.He puts other major industries (e.g Fonterra/ dairying) and the government to shame with his realistic no-nonsense approach to sorting out NZ’s ETS (carbon reduction) scheme and on the importance of actually taking convincing and meaningful action to maintain and enhance NZ’s green’ reputation.

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