Emirates Deal to Help Qantas

Qantas is expecting that its deal with airline company Emirates would help improve its bottom line and improve Qantas’ standing in the airline industry.

Indeed, the Qantas-Emirates alliance has already help the struggling Australian carrier. Its share price increased 13 percent in the last 24 hours.

Although some industry analysts said the alliance is Qantas’ admission that it cannot compete internationally, it is also heartbreaking realization for Qantas that it needs to salvage its struggling international operations.

The Qantas-Emirates alliance would also mean that Qantas passengers would pay lower departure taxes to German and UK government authorities. Passengers who depart from Australia to go to UK have to pay UK departure taxes, which are also called air passenger duty.

Qantas had to pay about $142 for passengers in the economy class and $285 for those in the premium economy, first-class and business sections if they use the Singapore hub.

With the alliance, Qantas would use the Dubai hub and passengers would no longer have to pay as much.

Although industry observers are still wary if the alliance would benefit Qantas in the long run, they are optimistic that Qantas would pull through.