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Has Qantas signed its own death warrant by “merging” with Emirates?

No farmer would ever invite a fox into his hen-house, but a close look over the past few days at the strategic link forged by the one-time Australian flag-carrier, Qantas Airways, with Dubai-based Emirates Airlines, reveals a “fox and hen” situation which can only lead to the obvious outcome.

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A strange and some might say paranoid take on what is really a better deal for Qantas than Emirates. The other option would have been an eroding of Qantas'international business through the gradual cessation of flights to key European destination; London being the most likely to fall. With Emirates as a partner, Qantas gets access to Dubai and all the European destinations that this prized hub supplies.

Well written Tim. I could not agree more. Lets hope finally Qantas will realise the inferior service they have offered for sometime just does not cut it anymore and the need for high end upmarket service will sink in. They could start by getting rid of their staff, majority of whom are grumpy at best and appear to really hate their jobs. It is always nice to fly with an airline where the cabin crew are happy to have you on board (as with most Asian airlines) rather than make you feel like you should be thanking them for their half baked service!

Karrinyup
EasyA - How is that paranoid? Qantas is pretty much on life support and had to do something but the point is that what they've now done is invite their own customers to experience a vastly superior airline that operates off a lower cost base. All this will do is hasten their own demise. Besides which, the Asian airlines aren't going to stand by and watch their own passenger numbers fall because of this tie up and they have the means to compete on cost with Qantas (not to mention the much better service they offer). Why would anyone want to fly Qantas these days?

perth
hi tim ref "It [Qantas] has been the best on offer for most Australians" if you believe this you have not traveled often enough to sample what else has been available for years .

Perth
The two two biggest issues are will this spur Qantas to lift its game in the service department to remain relatively competitive in the partnership and will they continue to cede Australian captial cities to Emirates as they have done with Perth and Adelaide? Some of Qantas' equipment is pretty good compared to the 10 abreast seating down the back of Emirates 777s, but service and staff approach can be the deciding factor, but if Qantas don't even provide a flight to 'their' Australian customers while Emirates do, well they aren't even in the game. I'm sure Qantas' Perth customers would be waiting till hell freezes over to see an A380 out of here and instead with Qantas will continue to be required to head over to Melbourne or Sydney to experience it, while Emirates will later this year be converting one of their 3 daily flights out of Perth to an A380 and its only being held up by the ridiculous wait time of getting Perth airport into the 21st century to be able to handle the A380s. Meanwhile Qantas has cut one of its two daily flights Perth to Singpaore and scratched its partially weekly Perth-Hong Kong flights leaving only 1 Qantas international flight out of Perth a day... With that sort of commitment to many Australian customers and its Sydney-centric approach is it actually such a loss if Qantas is the loser from this arrangement?

When Alan Joyce forced passengers around the world to miss flights and suffer in airports due to his personal - and costly - dummy spit with unions, he indicated right there and then what his priorities are and that his reputation for running airlines into the ground (and perhaps taking a nice pay/share benefit after a takeover) is warranted. As for grumpy staff: staff reflect their leadership.

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Total Shareholder Return as at 30/09/16

1 year TSR5 year TSR
356thAmcor19%24%
365thLendlease17%20%
421stOrigin Energy4%-11%
526thQantas-9%19%
722 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Revenue

9th-Qantas$16,200.0m
10th-Lendlease$15,350.3m
13th↓Amcor$12,811.1m
14th-Origin Energy$11,981.0m
77 listed non wa companies ranked by revenue.
Source: Morningstar

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