Qantas-Emirates alliance ‘good for consumers’

The argument by Qantas and Emirates that renewing their alliance will deliver benefits to consumers has received a fillip.

Qantas and Emirates want to revise their partnership.

The argument by Qantas Airways and Emirates that renewing their alliance will deliver benefits to consumers has received a fillip.

In a submission to the competition watchdog as it assesses whether to reauthorise the joint venture, the Department of Infrastructure and Regional Development says reauthorisation is “likely to enhance consumer choice, sustain strong competition in the important Europe/UK market, and, like recent Virgin Australia partnerships, enable Qantas to broaden its international network”.

Perth Airport, the gateway for non-stop flights between Australia and Britain from March, has also swung behind the renegotiated joint venture, as has the Australian Federation of Travel Agents. The travel agents group says that since the original 2013 deal between Qantas and Emirates, “the price paid by consumers has decreased while the frequency and quality of product has increased,” the submission by the group says.

The landmark deal was revised recently. Qantas is now in a much stronger financial position than when it signed the original deal with the Gulf carrier. As part of the revised deal, Emirates is ending most of its flights between Australia and New Zealand, while Qantas is going to stop flying to London via Dubai, instead doing a stopover in Singapore during its Sydney to London service.

The revised deal needs the approval of the Australian Competition & Consumer Commission.

From March, Qantas will use the Boeing 787-9 Dreamliner to fly direct to London from Perth.

Perth Airport chief executive officer Kevin Brown told the regulator that the deal between Emirates and Qantas would still be necessary after the non-stop flight takes wing as Perth-London traffic was only 30 per cent of the overall Perth-Europe market.

Adelaide Airport has also backed the revised deal.

The ACCC is expected to make a draft determination on the proposal in January and a final decision in March.