Qantas/Emirates tie up in news again

[Jon Harris]

Looks like FRA will get the chop and leaving only LHR.

http://www.airlinehubbuzz.com/qantasemirates-tie-gains-momentum/

and

http://afr.com/p/national/qantas_forges_emirates_tie_GKZJYgOs7oRkwZIgeI6VQJ

doesn't look so good for QF.

[George G]

In my opinion, Qantas has more to gain through this deal than Emirates does.

Hopefully Qantas starts improving customer service if this goes ahead.

[Jim M]

Don't really know what to make of this yet :confused:
If some of the LHR flights route through Dubai, and with the cancellation of the services to FRA, one would think that QF would have to up the ante of flights to SIN in some other way,such as it becoming a destination in its own right,I guess.

This will all be very interesting space to keep an eye on :rolleyes:

Jim

[Rowan McKeever]

I agree George... there doesn't seem to be much, if anything, in this for EK. I would've thought they'd rather continue their own expansion of services to Australia than do so through the use of QF's metal. Likewise I can't see why EK would want to have QF on DXB-LON when it already has its own extensive LON network.

If this did go ahead do people see scope for BA to scale down its LON-DXB flying in favour of putting a codeshare on the prospective QF service?

[Bernie P]

If this did go ahead do people see scope for BA to scale down its LON-DXB flying in favour of putting a codeshare on the prospective QF service?

OR, they could scale it up, and then take on those QF pax on their metal as opposed to the EK metal, in much the same way as they are doing now through both SIN and HKG?

Personally, I think it could be good for both, a wider scope for QF to access Europe, and for EK to have a domestic 'network' within Australia. Not to mention, EK having access to the QF FF program as well...

Interesting times ahead...

[Dave Dale]

Could this mean a new order for more planes at at Qantas, the 747-8I or 777 perhaps? (I am not intending to revive old arguments for either plane, just a question of possible expansion of aircraft).

Dave

[Joe Frampton]

I don't get it. Why would I fly on Qantas to Dubai to connect on Emirates to Europe, when I can fly on Emirates to Dubai to connect on Emirates to Europe? Seems like Qantas is just gonna become a regional carrier. If that's the only way to survive then fair enough I suppose.

[Thomas Collins]

there doesn't seem to be much, if anything, in this for EK

You have not thought about the domestic feed this provides to EK.

Qantas will funnel customers that may have travelled on Qantas then switched to other carriers e.g. Etihad, Qatar, Singapore Airlines etc.

Qantas may operate their own metal to DXB and EK removes theirs, or they'll operate in conjunction, much like Qantas and British Airways on the JSA.

This will be a fantastic opportunity to offer Qantas customers 1 x stop into Europe. Something not previously available due mostly to bilateral constraints e.g. Qantas was ever only allowed 3 x services per week to Paris ex SIN, yet AF and SQ could operate to their hearts content.

I truly hope this goes through - for Qantas's sake. Geographically, Qantas suffers being and end-of-the-line carrier - in addition to the lack of hub and spoke advantages other carriers enjoy... I could go on.

[Rowan McKeever]

Bernie & Thomas, you're right in that I hadn't thought of domestic Aussie feed for EK, but that's already happening by interline isn't it?

If I were Tim Clark (which I'm not) there'd have to be one hell of a carrot dangled in front of me to entice me to withdraw some of my own capacity from what (I read somewhere today) is my third biggest market...

[Ash W]

Maybe that carrot is access to the US, something that Emirates has always wanted.

[Rowan McKeever]

Maybe that carrot is access to the US, something that Emirates has always wanted.

Except as a codeshare arrangement (which doesn't help EK that much as it has its own non-stoppers to the US so only benefits in the 'round the world' sense), access for EK to the US is not QF's to give... although of course they could drop their objection, but would they?

[Ash W]

Just realised it is Singapore that wants US flights through Aus and not Emirates.

[Adam J]

I agree with Joe.

Doesn't seem to make much sense to me for either airline.

[Ash W]

It makes a lot of sense for Qantas provided of course they get some of the action, or assistance to elsewhere. For example maybe EK will stop flying to NZ handing that traffic to Qantas, same too on the SYD-BKK route.

[Mark Grima]

EK won't stop flying to NZ without a significant change to their schedules. The NZ services allow usage of their equipment during what would otherwise be significant downtime. As everyone knows a plane that's not flying is costing money not making money.

I think this will be great for QF. Opens up many more one stop markets on a QF ticket and allows then to have the equipment to focus on an Asian expansion.

I have also read comments that this could see the end of QF as part of Oneworld. Not so sure about that. Rather does anyone actually think it may bring EK to OW? That should help out with their American ambitions.

Cheers

M

[Thomas Collins]

As everyone knows a plane that's not flying is costing money not making money.

It is unlikely they're making money on trans-Tasman. It is a thin margin route, with a lot of capacity, and most notably, not suitable for A380's and A346's etc.

They're operating on the market so they can capture passengers from NZ and take them all the way through to Dubai and Europe etc.

Whilst they'll loose on the TT - they'll gain on the larger ticket onwards and in addition, secure loyalty.

Trust me - operating a A380 on TT is not turning coin...

[Jayden Laing]

Unless they load it with freight Thomas. I have heard & seen that quite a lot of freight is moved by EK between AUS & NZ!

[Thomas Collins]

There is a lot of freight carriage on TT, by all carriers.

It is unlikely they're filling the 380 daily with sufficient freight to turn a profit...

[Jayden Laing]

Freight pays a lot more than pax. However it would be interesting to see if they are making a profit though.....

[Lawrie L]

If EK has a codeshare with QF for trans-Tasman, then QF would sell lower price than NZ/Virgin Australia/jetstar. Maybe it's unlikely.

[Andrew M]

http://capgroup.com/ have just purchased another 1% of QAN shares.

Hmmmmmmmmmmm