ACCC grants conditional authorisation for an alliance between Qantas and Emirates
May 14, 2013, 8:28 pm
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NZ Government Approval - Govt ticks Qantas-Emirates trans-Tasman tie up
Qantas and Emirates have been given the go-ahead to share flights on trans-Tasman routes, provided they maintain the present level of services.
In March, the Australian competition regulator approved a wider alliance between the airlines - mainly focused on routes to Europe via Emirates' Dubai hub - but said they must maintain existing capacity on four over-lapping trans-Tasman routes due to fears fares could be pushed higher.
The New Zealand Government has now added its approval, initially for five years, saying it will monitor trans-Tasman competition. Qantas and Emirates operate 129 flights per week between Australia and New Zealand on a mix of B737, A380 and B777 aircraft.
The agreement means Emirates can now list Queenstown and Wellington as destinations on its network, but flights would always be operated by Qantas as Emirates' planes are too large for those runways.
"Qantas and Emirates will be able to cooperate on passenger and cargo transport operations, and other related services, for an initial period of five years," Transport Minister Gerry Brownlee said, adding the alliance would help airline passengers, exporters and the tourism sector.
"Exporters and travellers will benefit from strengthened connections with Emirates' international network, including 30 points in Europe, as well as the growing Middle East region and Africa."
Qantas chief executive Alan Joyce said the decision was great news for global travellers and local tourism.
"[It] means that New Zealand consumers can tap into the lounges, frequent flyer benefits and destinations available under the joint Qantas and Emirates network."
President of Emirates Tim Clark said the partnership was game-changing.
"Dubai is a leading global hub and through it, our two airlines will connect New Zealand to Europe, the UK and Northern Africa more smoothly than ever before."
From Dubai, passengers can connect to 65 destinations in Europe, North Africa and the Middle East. Almost all of these connections to Europe and most to North Africa are available within four hours of landing in Dubai.
Qantas and Emirates launched the global partnership with an inaugural flight from Sydney to Dubai on March 31.
In March, the Australian competition regulator approved a wider alliance between the airlines - mainly focused on routes to Europe via Emirates' Dubai hub - but said they must maintain existing capacity on four over-lapping trans-Tasman routes due to fears fares could be pushed higher.
The New Zealand Government has now added its approval, initially for five years, saying it will monitor trans-Tasman competition. Qantas and Emirates operate 129 flights per week between Australia and New Zealand on a mix of B737, A380 and B777 aircraft.
The agreement means Emirates can now list Queenstown and Wellington as destinations on its network, but flights would always be operated by Qantas as Emirates' planes are too large for those runways.
"Qantas and Emirates will be able to cooperate on passenger and cargo transport operations, and other related services, for an initial period of five years," Transport Minister Gerry Brownlee said, adding the alliance would help airline passengers, exporters and the tourism sector.
"Exporters and travellers will benefit from strengthened connections with Emirates' international network, including 30 points in Europe, as well as the growing Middle East region and Africa."
Qantas chief executive Alan Joyce said the decision was great news for global travellers and local tourism.
"[It] means that New Zealand consumers can tap into the lounges, frequent flyer benefits and destinations available under the joint Qantas and Emirates network."
President of Emirates Tim Clark said the partnership was game-changing.
"Dubai is a leading global hub and through it, our two airlines will connect New Zealand to Europe, the UK and Northern Africa more smoothly than ever before."
From Dubai, passengers can connect to 65 destinations in Europe, North Africa and the Middle East. Almost all of these connections to Europe and most to North Africa are available within four hours of landing in Dubai.
Qantas and Emirates launched the global partnership with an inaugural flight from Sydney to Dubai on March 31.
