Heading in to the launch of the Emirates/Qantas strategic partnership this month some numbers were released by the Australian carrier regarding booking trends. Most notable, perhaps, is the claim that bookings to Europe are six times greater than the prior year. That’s a rather significant swing, and it is based almost entirely on dumping the inefficient connections via Asia in favor of better options available via Emirates’ hub in Dubai. And, depending on how one reads the tea leaves, it provides an interesting commentary on the value of global alliances.
Photo from the Qantas/Emirates flyover of Sydney Harbour courtesy of Qantas
It seems that the oneworld partnership between Qantas and both Cathay Pacific and British Airways was less that spectacular in pushing passengers into Europe; many of the destinations required an extra connection or less than desirable flight times. Or both. That’s not a great way to attract passengers. Emirates offers better connections and more than 50 destinations in Europe with a single connection from Australia. It is not all that difficult to believe that customers prefer that approach.
The bigger question from this data is what it means for the global alliances. Have they run their course?
Emirates doesn’t seem to want to join one and Qantas is more concerned with being profitable than with being exclusive to the oneworld group. Neither of those should be much of a surprise. Yet the partnership was quite a surprise when announced.
I still believe that the alliance serve a purpose. They provide great opportunities for joint marketing and certain customer benefits. But they are no longer the only way to build a solid international footprint. Focused bilateral partnerships (Air New Zealand and Cathay are launching a similar one) can be bar more valuable in many scenarios.
The times, they are a-changin.
- How much does the Middle East alliance shake-up matter?
- Emirates, Qantas tie up on Australia service
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