After weeks of speculation, Qantas has announced the termination of its 17 year joint business agreement with British Airways in favour of a new extensive aviation partnership with UAE carrier, Emirates.

Announced this morning, Qantas said it will amicably end its relationship with British Airways from 31 March 2013 before moving into its new ten year commercial relationship with Emirates from April next year.

Although still subject to regulatory approval, the Australian flag carrier said the new agreement would go beyond codesharing to include coordinated pricing, sales and schedule as well as allow the Australian flag carrier to move its hub for European flights from Asia and into Dubai.

The combination of operations means Qantas and Emirates will have up to 98 weekly services flying between Australia and Dubai per week, with Qantas utilising Dubai International Airport’s Terminal 3 to operate its A380.

Qantas chief executive Alan Joyce explained although the partnership with British Airways had been “central” to the airline’s network over the past 17 year, “conditions have changed” and the partnership with Emirates “is the right strategy” for the carrier.

Describing it as the “most significant partnership” the airline has ever formed, Mr Joyce said Emirates is the “ideal partner for Qantas” with its modern fleet, A-list destinations and approach to quality.

Emirates president Tim Clark concurred, adding that the “time was right” for the new “long term, future forward” agreement.

“As the world’s largest international airline, with a network that perfectly complements our own, Emirates will help us give our customers across Australia a dramatically expanded range of travel options,” Qantas’ head explained.

“Together with Emirates, Qantas will provide a unique ‘one stop’ hub service, as well as deeply integrated frequent flyer and customer benefits.

“There will be considerable benefits for the broader economy as we collaborate with industry to drive more inbound trade and tourism.”

As part of its move away from Asia, Qantas announced it will restructure its Asian network, commencing with the termination of its “underperforming” Singapore to Frankfurt route.

Mr Joyce said changes to its Asian network are in line with business customer demands for better access to Asia.

“We will increase dedicated capacity to Singapore and re-time flights to Singapore and Hong Kong to enable more ‘same day’ connections across Asia,” Mr Joyce said.

“We believe this will significantly improve the economics of our Asian operations.”

Unlike Virgin Australia’s relationship with Etihad, both Qantas and Emirates have confirmed that neither airline will invest in equity in the other.

The new partnership will give Qantas customers access to up to 70 Emirates destinations in Europe, the Middle East and Africa.
For more information on the partnership, flyers can check out the new conjoined website; www.qantasandemirates.com