Qantas-Emirates alliance cleared for trans-Tasman routes
Australia's largest airline has also reshuffled its senior management ranks, resulting in high-profile executive Olivia Wirth taking on an extra role as marketing chief.
However, her title as chief government lobbyist will be handed to new recruit Andrew Parker, who has been Emirates' chief spin doctor for the past six years.
Mr Parker, a one-time adviser to former Liberal leader John Hewson, will join Qantas in July.
Almost two months after the alliance won approval from the Australian competition regulator, New Zealand Transport Minister Gerry Brownlee has given the green light to the Qantas-Emirates deal for five years.
The airlines' request to extend their alliance to the trans-Tasman market was the most contentious part of the deal, which is focused on routes to Europe via Emirates' base in Dubai.
The Australian Competition and Consumer Commission has already forced Qantas and Emirates to keep capacity on four overlapping routes on the Tasman at the levels they were at before March.
The New Zealand government has not imposed any extra conditions on the airlines.
Mr Brownlee said the alliance would benefit passengers, exporters and the tourism sector through a strengthening of connections with Emirates' international network.
The government insists low fares will be maintained on the Tasman from "more sustainable competition and cost savings as a result of the alliance".
Virgin Australia and Air New Zealand are also seeking approval from regulators for an extension to their own alliance on the trans-Tasman.
A decision is expected in September.
Air New Zealand and Virgin have a combined market share of almost 57 per cent on the Tasman, compared with about 40 per cent for Qantas, Jetstar and Emirates.
Analysts at Macquarie Equities said the chance of a price war between the two airline groups was minimal.
Frequently Asked Questions about this Article…
New Zealand’s Transport Minister Gerry Brownlee approved the Qantas–Emirates alliance extension to trans‑Tasman routes for five years, clearing the final regulatory hurdle after earlier Australian approval.
The New Zealand government says the alliance will strengthen links to Emirates’ international network and benefit passengers, exporters and tourism. It also insists low fares will be maintained through “more sustainable competition and cost savings” resulting from the alliance.
Australia’s competition regulator (the ACCC) required Qantas and Emirates to keep capacity on four overlapping Tasman routes at the levels they were before March. New Zealand approved the deal without adding extra conditions.
Qantas reshuffled senior ranks: Olivia Wirth will take on an extra role as marketing chief, while the company’s chief government lobbyist role will be handed to new recruit Andrew Parker, who joins from Emirates in July.
Andrew Parker has been Emirates’ chief communications figure for the past six years and was previously an adviser to former Liberal leader John Hewson. He is set to join Qantas in July and take on the chief government lobbyist role.
According to the article, Air New Zealand and Virgin Australia together hold almost 57% market share on the Tasman, while Qantas, Jetstar and Emirates together account for about 40%.
Yes. Virgin Australia and Air New Zealand are seeking regulator approval to extend their own trans‑Tasman alliance, with a decision expected in September.
Analysts at Macquarie Equities said the chance of a price war between the two airline groups is minimal, suggesting analysts do not expect aggressive fare cutting as a result of the alliances.
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