In light of this morning’s announcement in Sydney of a new QANTAS/Emirates alliance the long standing British Airways/QANTAS Joint Service Agreement on the Kangaroo route will cease after 31st March 2013. The announcement read:
International Airlines Group’s wholly owned subsidiary British Airways and Qantas have agreed to terminate their joint business from 31 March 2013. This follows Qantas’ announcement that it is entering a new global partnership with Emirates.
The joint business was established in 1995 to enable close commercial cooperation on Qantas and British Airways services between the Australia and the UK. The airlines will continue to work together as part of the Oneworld Alliance and through bilateral codeshares.
Qantas chief executive Alan Joyce said: “Over the past 17 years the joint business with British Airways has been central to the Qantas network.
“However, global operating conditions have changed and partnership with Emirates is the right strategy for Qantas.
“I’d like to thank IAG CEO Willie Walsh and British Airways CEO Keith Williams for their support of the joint business and I look forward to a continued strong relationship in future.”
IAG chief executive Willie Walsh said: “We’re ending the joint business on amicable terms and support Qantas’ decision to work with Emirates. The world has changed since 1995 when the joint business started. This is a small part of our overall network and this move fits in with changes in our global strategy. Asia has become a key market focus for IAG and we’re talking to a number of airlines about alternative options for us.
“Qantas has made it clear that its international performance has been weak and the termination of the joint business won’t have any negative impact on IAG’s financial targets. The good relationship that we have with Qantas CEO Alan Joyce and his team will continue through our joint membership of Oneworld”.
Qantas will contact any customers due to travel after 31 March 2013 whose bookings may be affected by changes to the joint business, to discuss alternative travel options.”
This announcement is likely to see the BA15/BA16 London Heathrow – Singapore – Sydney service terminated at Singapore after 31st March 2013.