The new alliance deal between Qantas and Emirates could be the start of changes in the world of global airline alliances. As in a previous blog (here) I discussed why alliances such as oneworld were failing and this deal is an indication of unrest with a larger member in the oneworld alliance. I see this new alliance deal as the potential start for some major alliance break-ups and perhaps some new groupings to emerge. I certainly don’t foresee this as an indication Emirates is about to join the oneworld alliance. Emirates’ entering into an alliance relationship such as this is also a large concession on their part that the “go it alone” strategy isn’t working either. Deals such as this between Emirates and Qantas will not be the first and certainly not an end game solution either.
This deal tells us two things.
- Qantas is not getting the required returns from oneworld, and
- Emirates is struggling to achieve the global mega airline status
In the short term this alliance will add value to both airlines as Qantas considers its oneworld position and Emirates their growth strategies.