Qantas says deal will lure more Europeans
Launching the tie-up this week, Qantas chief executive Alan Joyce also said the deal would enable the two airlines to eat into the market share of the 30 other airlines that fly between Australia and Europe, particularly main rivals Singapore Airlines and Cathay Pacific.
"With us having the Emirates network and our frequent flyer base [of 9.3 million members], we believe we will shift share significantly back," Mr Joyce said.
But the airlines face a challenge in convincing Europeans from nations with weak economies to travel to a country that has been made more expensive by the high dollar.
The number of tourists from Britain - Australia's biggest market in Europe - fell 2.4 per cent to 593,600 last year.
It has meant that Qantas has been carrying a slightly higher proportion of Australians on its flights to and from Europe than foreign travellers.
Mr Joyce conceded the dollar had made Australia a "little bit less attractive". But he emphasised that the alliance's one-stop flights from 32 cities in Europe would help increase the number of inbound tourists.
The alliance is mostly focused on routes to Europe but includes services to North Africa, the Middle East, Asia and New Zealand.
Diarmuid McDonald, an auditor from Ireland's second-largest city, Cork, said people from his home town were much less inclined to consider a holiday in Australia, preferring destinations much closer to home.
"You would want to be pretty immune to the downturn to even contemplate a holiday to Australia these days because of the economic conditions," he said. "No European country is spared from the downturn - even Germany's growth has completely levelled off."
Emirates president Tim Clark agreed the high dollar was an issue but said Europeans were still eager to travel to Australia because it was regarded as a top destination.
"If it is considered difficult now, and we are launching our flights and they are full, I wonder what's going to happen when the eurozone sorts itself out and things get good again."
The reporter travelled to Dubai courtesy of Qantas.
Frequently Asked Questions about this Article…
The alliance pairs Qantas with Emirates to offer one‑stop flights from 32 cities in Europe, combining Emirates' global network with Qantas' frequent‑flyer base of about 9.3 million members. Qantas says that greater route connectivity and loyalty benefits will make travel to Australia easier and help lure more Europeans despite the high Australian dollar.
Qantas chief executive Alan Joyce said the alliance will let Qantas and Emirates take market share from the roughly 30 other airlines operating between Australia and Europe, specifically naming main rivals Singapore Airlines and Cathay Pacific as competitors likely to be hit as the partners leverage their combined networks and customer base.
Yes. The article notes the high Australian dollar has made Australia more expensive for overseas visitors, and Qantas acknowledges this challenge—especially for Europeans from weaker economies—meaning the currency makes attracting some tourists harder in the near term.
The article reports that the number of tourists from Britain, Australia’s biggest European market, fell 2.4% to 593,600 last year. Anecdotal comments from a traveller in Cork also suggest people in some European areas are less inclined to consider holidays in Australia during the economic downturn.
While mostly focused on routes to Europe, the alliance also includes services to North Africa, the Middle East, Asia and New Zealand, expanding options for passengers travelling to and from Australia across multiple regions.
One‑stop flights improve convenience and network reach, which Qantas says should increase inbound tourists. Emirates’ president Tim Clark added that Europeans still view Australia as a top destination, and demand could grow further if the eurozone economic situation improves.
Yes. The article states Qantas has been carrying a slightly higher proportion of Australians on its Europe flights than foreign travellers, a shift partly linked to the high dollar and softer inbound demand.
Investors should be aware of near‑term headwinds highlighted in the article: the strong Australian dollar making Australia more expensive, weaker European economies reducing travel propensity, and recent declines in key markets such as Britain. The alliance’s success may therefore depend on economic recovery in Europe and sustained demand growth.
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