Qantas has confirmed it is in talks with Emirates over a possible alliance.
The Australian carrier was earlier reported to have been approached by the Dubai-based carried with regards to a possible tie-up, and said in a statement today that it was is discussions with a number of airlines over an alliance.
“Qantas may be in contact with a wide range of companies about potential commercial cooperation,” the airline said. “These airlines include Emirates, among others.”
The Australian Financial Review reported earlier today that Qantas is working on a tie-up with Emirates. According to the report, the deal could result in a substantial number of Qantas’ east-to-west flights being routed through Dubai, including its lucrative ‘kangaroo route’ services to London, which currently operate through Southeast Asia. Emirates would codeshare on these services, as well as operating its own flights connecting Europe and Australia.
Last month, Emirates’ President & CEO Tim Clark said he was not interested in a takeover of Qantas. “We are not an M&A (mergers and acquisitions) vehicle; we don’t really get involved in that,” Clark was quoted saying by the AAP, although in a separate interview with Bloomberg, Clark admitted that Emirates was interested in coming to a “commercial arrangement” with the Australian carrier.
A partnership with Emirates is likely to be attractive to Qantas, which expects to make a AU$450 million (US$462m) loss on its international operations in the 2011-12 financial year. Plans to form a new Asia-based carrier with Malaysia Airlines were shelved earlier this year after the two airlines failed to agree commercial terms.
Meanwhile, Etihad Airways has been given the green light by Australian authorities to take a maximum 10% stake in Virgin Australia. Emirates, which will boost its Australian operations later this year with the launch of flights to Adelaide and additional capacity to Perth and Melbourne, is currently battling with both Etihad and Qatar Airways for dominance in the Australian market.
