Qantas to Team Up With Emirates, Drop British Airways
Qantas announced some interesting news yesterday: the Australian airline will be terminating its joint business with British Airways starting March 31, 2013, and beginning a new global partnership with Emirates.
The Qantas-British Airways partnership has been in place since 1995, and the two airlines will continue to operate some bilaterally codeshared flights – and Qantas also says is plans to remain a part of the Oneworld alliance – so we won’t see a death match over dominance of the routes between Australia and the UK just yet.
Qantas CEO Alan Joyce said that the new partnership with Emirates is a strategic shift for a changing travel marketplace and new global operating conditions. What that means is that Emirates has pretty much been beating Qantas hands down on its bread-and-butter Kangaroo Route from Australia to the UK thanks to Emirates’ hub in Dubai and the myriad connections to all corners of the globe that it flies out of there.
Under the new agreement, which stipulates a 10-year partnership, Qantas will move its hub for European flights to Dubai (instead of Singapore and Hong Kong where it currently connects between the UK and Australia) and enter a new extensive commercial relationship with Emirates.
Qantas will launch daily A380 service from both Sydney and Melbourne to London via Dubai. Together, both airlines will offer a total of 98 weekly services between Australia and Dubai alone and Qantas will be the only other airline operating out of Dubai International Airport’s Terminal 3 and its purpose-built A380 concourse. That seems like a lot of capacity, but Emirates President Tim Clark says that Australia is one of Emirates’ top 3 overall destinations.
The new hub means that, rather than having to continue straight to London or Frankfurt, Qantas customers can now take advantage of Emirates’ 70 destinations across Europe, the Middle East and Africa when connecting through Dubai. In turn, Emirates customers will have easier access to Qantas’ 5,000 weekly domestic flights to 50 destinations. The two carriers also plan to coordinate their services between Australia, New Zealand and Southeast Asia, one of the regions where Qantas plans to develop its routes further with business travelers in mind rather than using its hubs there as way-stations on the Kangaroo Route. Qantas plans to shift its schedules on these routes so that travelers can connect to other destinations in Asia more easily as well.
Perhaps the most interesting development: the Emirates and Qantas frequent-flyer programs will be aligned, so flyers can earn and redeem on either/both airlines, and the two carriers will provide reciprocal access to elite status benefits including priority access, lounge access and other perks.
Qantas CEO Alan Joyce spoke about the new partnership in no uncertain terms, saying: “This is the most significant partnership the Qantas Group has ever formed with another airline, moving past the traditional alliance model to a new level.”
So what does all this really mean, and are we moving beyond the traditional alliances into a world of hodgepodge bilateral airline partnerships? Or is this perhaps the start of a fourth alliance?
I hope this partnership pushes Emirates to officially join the Oneworld alliance so there are more options for redeeming American and British Airways Avios. Right now Emirates redemption options are limited to partners like Korean Airlines (transfer partner of Chase Ultimate Rewards) and, later in 2012, Alaska Airlines.
I also think this may push Virgin Australia and their partner Etihad to join SkyTeam now that competition is building down under. Time will tell, but I don't think partnership will be a bad thing for frequent flyers who will hopefully get more ways to earn and redeem miles.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.