Qantas ditches BA in tie-up with Emirates on European flights

Qantas Airways will work with Emirates on European routes as it quits a 17-year partnership with British Airways in a bid to end losses on international operations.

The accord would let Qantas add more than 60 new one-stop destinations to its network, as it shifts its European hub to Dubai from Singapore, the Sydney-based carrier said.

The airlines will offer 98 flights a week to Dubai under the 10-year agreement, which is due to begin in April next year.

Qantas lost A$450 million (HK$3.6 billion) on long-haul flights in the year ended June. The carrier has struggled to compete with fast-growing Middle East airlines that have used hubs in the Gulf to offer a wider range of connections between Australia and Europe.

"This is the biggest arrangement Qantas has ever entered into with another airline," chief executive Alan Joyce said yesterday. "This agreement represents a step-change for the aviation industry."

The two airlines, the biggest and third-biggest by passenger numbers on routes from Australia, intend to co-ordinate pricing, sales and scheduling. They will also align their frequent-flier programmes, allowing passengers to earn points on both carriers' flights.

The deal would probably be worth more than A$90 million a year to Qantas, as it would boost the carrier's appeal to corporate travellers and grow its international business, said Sondal Bensan, a BT Investment Management analyst. The fund manager's parent Westpac Banking Corp owns 5 per cent of Qantas.