The World’s Leading Airline Partnership – Alan Joyce

Sydney | Published on 6th September 2012 at 2:14

The World’s Leading Airline Partnership – Alan Joyce (opens in new window)

Good morning everyone and a warm welcome.

A special welcome to Tim Clark, President of Emirates Airline.

Today we mark a new era for Qantas, for Australian aviation, and for global
aviation.

This morning Tim and I signed a Commercial Agreement to form the world’s
leading airline partnership between Qantas and Emirates.

AN INTEGRATED PARTNERSHIP

We have agreed to join forces to give our customers the most comprehensive
premium travel experience on the planet.

We will be poised to deliver the best in networks, frequencies, lounges, loyalty
programs and customer experience.

There will be no equity investment on either side.

This is a partnership of independent peers, based on shared standards and
aspirations.

Pending approval by the regulatory bodies, from April next year Qantas will
transfer its hub for European flights from Singapore to Dubai.

Our daily Airbus A380 services to London from Melbourne and Sydney will transit
via Dubai’s Terminal 3, the world’s only purpose-built A380 terminal.

Qantas and Emirates will be the only airlines in the Terminal, so we’ll have a big
Qantas presence and access to superb lounges and facilities for Qantas
customers.

A NEW ERA PARTNERSHIP

This agreement represents a step-change for the aviation industry.

It is far bigger than a codeshare. Or even a joint services agreement.

This is the biggest arrangement Qantas has ever entered into with another
airline.

A ten year partnership, which will be good for all parts of the Qantas Group.

Subject to regulatory approval, it will include integrated network collaboration
with coordinated pricing, sales and scheduling and a benefit-sharing model.

This will deliver significant benefits to our business.

GREAT FOR CUSTOMERS

From April next year we enter a new era.

We will commence flying with 14 daily Qantas-operated or coded Boeing 777
and A380 flights from Adelaide, Brisbane, Melbourne, Perth and Sydney to
Dubai, with its 24 hour hub and connection to four continents.

It will mean just one stop to 33 European destinations, seven of them serviced all
the way by A380s, including Paris and Rome as well as London.

Regional Australians are used to multi-stop journeys to Europe and home again.

From April next year, for regional travellers it’s just two stops to the heart of
Europe.

Check in at Rockhampton and collect your bags in Rome. Port Macquarie to
Madrid. Even Longreach to Lisbon.

Eligible customers will be welcomed in Emirates lounges across Europe.

Our trans-Tasman customers will benefit through greater frequencies and the
potential for new routes.

Business and corporate customers will find that taking care of business is more
convenient with over 30 Middle East and North African destinations a short flight
from Dubai.

THE CUSTOMER EXPERIENCE

In our discussions Tim and I came up with a guiding principle for this partnership:
Treat each other’s customers as your own.

Our two airlines will, of course, retain their distinct style and identity, but we will
match key customer benefits.

Where there is a difference in customer service, we’ve agreed to make the
higher benefit our standard.

Our baggage policies will be the same, and we’ll operate from common terminals
in Sydney, Melbourne, Dubai and London.

FREQUENT FLYERS

Central to this partnership will be Qantas Frequent Flyer.

Together we will offer the world’s best loyalty proposition for Australian flyers.

The biggest benefit, of course, will be the vastly expanded opportunities for
Qantas Frequent Flyers to earn and redeem their points.

Qantas and Emirates will provide reciprocal access to tier status benefits which
includes end-to-end recognition of customers, lounge access, priority check-in
and boarding and more.

I think it’s going to give our 8.6 million Frequent Flyers big new incentives, which
should be great news for our partners like Optus, Woolworths and David Jones.

So when you purchase that Italian suit at David Jones, remember you are
earning points to wear it in Venice.

Or Barcelona. Or Milan.

WHY EMIRATES

A lot has been said about Qantas and aviation partnerships.

I’ve always made it clear we would not form any new partnership until we found
the partner that was absolutely right for us, our customers and our business.

Emirates is one of the world’s best airlines with an all wide-body fleet, an
amazing global network, and a wonderful reputation for quality.

Its extensive international coverage perfectly complements the strong Qantas
presence in North and South America, South Africa and Asia and our domestic,
regional and trans-Tasman network.

Respect and mutual confidence is essential for a partnership of this nature.

Tim Clark is an aviation visionary with a meticulous eye for detail, combined with
an understated management style.

He commands respect, and he has made this partnership possible.

Qantas alone can’t take passengers everywhere – but together Qantas and
Emirates can take Australians just about anywhere. With style.

THE BUSINESS BENEFITS

This is all about our customers.

But it is also about creating a sustainable future for Qantas International.

Last year I announced a four pillar plan to turn around that business.

GATEWAYS AND PARTNERSHIPS

One pillar was the use of partnerships to extend our reach.

Through our partnership with Emirates, Dubai will become the Qantas gateway
to Europe, the Middle East and North Africa.

Dubai will complement Dallas, the gateway to North America; Santiago for South
America; Johannesburg for Southern Africa; and Singapore/Hong Kong for Asia.

Emirates will complement our relationships with American Airlines, LAN, South
African Airways and China Eastern, as well as oneworld™.

Our relationship with British Airways is an important part of the Qantas story.

I have been in discussion with my colleague and friend CEO Willie Walsh, and
we have agreed that the time is right to wind up the Joint Services Agreement.

We both value the relationship very highly and our two airlines will continue to
work together.

GROWING WITH ASIA

Now to Asia.

We currently have an Asian flying schedule based on travelling via Asia to
Europe.

But our Australian business customers want better access to Asia, and so do we.
As you know, we have been looking to address this issue.

By moving our hub for European services to Dubai, we will be able to restructure
the Asian network.

Our Asian services will no longer be a subsidiary of the ‘Kangaroo Route’: they
will be dedicated to connecting Australians with our region, and Asian visitors to
Australia.

Qantas will increase dedicated capacity to Singapore, and re-time flights to
Singapore and Hong Kong to enable many more ‘same day’ connections across
Asia. Our partner Emirates also services South East Asian destinations from
Australia.

We are also looking at ways to refine our product and service offerings
specifically for the needs of business travellers.

This restructure will result in a significant improvement in the economics of our
Asian operations.

A STRONG, VIABLE BUSINESS

A key objective is to make Qantas International strong and viable, and bring it
back to profitability.

This partnership will help us do that, while building on our strengths in Qantas
Domestic, Qantas Frequent Flyer and Jetstar.

For the vast majority of our Qantas people it will be warmly welcomed because it
is all about creating a sustainable future for Qantas.

But there will be changes to our operations, and these will have an impact on
various roles.

Our Frankfurt services have been struggling for some time and withdrawal from
the route was inevitable.

This Emirates partnership will help us make an orderly withdrawal, and also
ensure we can continue to service our customers over the long term.
Along with changes to our schedule, there are likely to be changes to the aircraft
types we use in Asia.

We will be working through all these and other changes with our people, as with
all relevant stakeholders. However over the long term I see our partnership with
Emirates as a platform for growth.

BEST FOR GLOBAL TRAVELLERS

Finally what we are announcing today is a fantastic proposition for our global
travellers – literally opening up Europe, the Middle East and North Africa to
Qantas business and leisure flyers.

BENEFITS TO AUSTRALIA

And just as it opens up Europe to Australian travellers, it also offers the
opportunity to bring many more European visitors to Australia.

Qantas and Emirates will be working together to make the most of the array of
opportunities and it’s going to be good for Australia.

Let me conclude by thanking Tim and all of his hard working team.

I’d also like to thank all the Qantas people who have worked so hard to bring this
together.

It’s going to be fantastic for Qantas, Emirates, for Australian tourism and
business and for the Australian travelling public.

I’d now like to invite Tim to speak.