Emirates and Qantas Code-Share Alliance

Speculations of a code-share alliance between Emirates and Qantas rise as Emirates chief executive Tim Clark goes to Sydney for a visit. If this alliance is realized, the Middle Eastern airline, Emirates shall be in charge of the Europe and Australia routes.

$90 million pre-tax earnings are expected in Qantas’ future.

The transport analyst from Macquarie Equities, Russel Shaw, explained that this tie-up may as well be the answer to Qantas loss of income in its international operations which totaled $450 million from June 2011 to June 2012.

He further explained that with the code-share, several Boeing 737 aircraft of Qantas can be freed up to take in more flights in the Tasman and Asian areas while also allowing some six 747 jumbos to retire.

Shaw, however, stated that even with such alliance, Qantas is still facing a challenge overtaking the likes of Singapore Airlines and Cathay Pacific in the Asia routes. In the local market, Qantas faces competition through Virgin Australia.

There have been reports as well that Qantas wanted to go into a profit-sharing contract with Emirates. However, the latter is not yet entertaining such arrangement.

Shaw reported that the move of Qantas to work with Emirates is a means to attract investors but he is doubtful that investors will be enticed to do so since the domestic market doesn’t look good.

Furthermore, after a decade of complacency on its monthly traffic statistics, Qantas has stopped giving information on this.