Qantas alliance may expand to support services
With just four weeks to go before the alliance is due to be launched, Qantas has sought to make clear that the focus of the alliance is on flying operations, and that the two airlines have not begun any talks or planning about operations such as ground handling, catering or aircraft engineering.
"There are no current plans for co-ordination [of non-flying operations] in Australia at this time," it said in a submission to the Australian Competition and Consumer Commission.
However, Qantas noted that the two airlines' flying operations might jointly look to buy services from other companies that offer ground handling, engineering and catering operations.
Qantas' catering operations include Q Catering and Snap Fresh, while Emirates' associate Dnata owns Alpha Flight Services. The latter has about 1200 employees in Australia. As well as supplying their respective fleets, the catering businesses provide meals for other airlines that fly to and from Australia.
Qantas and Emirates said they were willing "to exclude co-ordination between catering and aircraft cleaning operations" from their alliance "in order to seek to allay issues" raised by trade unions such as the Transport Workers Union.
But it said that "any potential co-ordination between the catering and aircraft cleaning operations would, if considered necessary at the time, be subject to a separate application".
The long-haul pilots' union and the TWU, which represents baggage handlers, have also raised concerns that jobs could be threatened by a "narrowing of competition and a transfer of flying to Emirates" on services from Perth and Adelaide to Europe and Asia.
But Qantas said jobs would be "more secure" with the deal, emphasising that it would be forced to cut more services to Europe if it did not go ahead.
The competition regulator has given a tentative nod of approval to the Qantas-Emirates alliance but will not make a final decision until next month. The airlines plan to launch their alliance on March 31.
Frequently Asked Questions about this Article…
The Qantas–Emirates alliance is a partnership focused on flying operations between the two airlines; they plan to launch the alliance on March 31, with the competition regulator to make a final decision next month.
Qantas has said the current alliance focuses on flying operations and there are no current plans to coordinate non-flying activities like ground handling, catering or aircraft engineering in Australia at this time.
Yes — Qantas noted the two airlines' flying operations might jointly look to buy services from companies that offer ground handling, engineering and catering, but any such coordination would be subject to separate review or application.
Qantas' catering operations include Q Catering and Snap Fresh, while Emirates' associate Dnata owns Alpha Flight Services, which employs about 1,200 people in Australia and supplies meals to multiple airlines.
Unions including the Transport Workers Union and the long-haul pilots' union have expressed concerns that coordination could threaten jobs, narrow competition and shift flying to Emirates on routes from Perth and Adelaide to Europe and Asia.
Qantas says jobs would be 'more secure' with the deal and has offered to exclude coordination between catering and aircraft cleaning operations from the alliance to allay union concerns; it also said any future coordination would require a separate application.
The Australian Competition and Consumer Commission (ACCC) has given a tentative nod to the alliance but has not made a final decision; that final decision is due next month.
Unions worry the alliance could lead to a transfer of flying to Emirates and a narrowing of competition on routes from Perth and Adelaide to Europe and Asia, while Qantas argues the alliance would prevent cuts to services and help preserve jobs.
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