Emirates Airline, the world’s largest carrier by international passenger traffic, will seek deeper ties with Qantas Airways Ltd. (QAN), the Australian company struggling with escalating losses on long-haul routes.
The Dubai-based carrier is examining a “commercial arrangement” with Qantas to benefit from the Australian aviation market while stopping short of an equity stake in the Sydney-based airline, Emirates president Tim Clark said in an interview with Bloomberg Television in Beijing today.
Emirates could take a stake of as much as 30 percent in a Qantas domestic unit if the international operations were separated, Sydney-based Deutsche Bank analyst Cameron McDonald wrote in a May 24 note. Photographer: Antoine Antoniol/Bloomberg
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June 11 (Bloomberg) — Tim Clark, president of Emirates, talks about the airline’s business strategy and the outlook for the global aviation industry. He speaks with Zeb Eckert on Bloomberg Television’s “First Up” from Beijing, where he is attending the International Air Transport Association’s annual general meeting. (Source: Bloomberg)
Qantas slumped 32 percent last week after forecasting its first annual net loss as a publicly traded company as unprofitable long-haul routes and restructuring charges wipe out earnings from domestic flights, where it has about 65 percent of the market. A deeper alliance with Emirates would allow the Australian airline to drop loss-making international services, while the Dubai-based carrier could take international passengers connecting from Qantas’s domestic flights.
via Emirates Seeks Closer Qantas Ties for Australian Growth – Bloomberg.
