BA cuts Qantas code share "in protest"

Profile picture for user Matt-100

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7 years 2 months

Posts: 569

I was surprised by the news today, especially seeing as last year Qantas had said they'd keep the code-share for passengers still wanting to connect via Asia. It would seem BA has other ideas, and I can't really blame them. I understand they were given the cold shoulder during the Emirates negotiations. Out of interest, does this mean Qantas is moving further and further away from One World? In the article it says Qantas passengers will no longer be able to gain frequent flyer miles on BA, which I thought was one of the benefits of being in an alliance? http://afr.com/p/business/companies/ba_cuts_qantas_out_of_code_share_nz7DvDuqn6DPVq4MqvdYlL
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Profile picture for user cloud_9

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14 years

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I would think that QF will probably end up leaving OneWorld because of its tie-up with Emirates, seeing as they are a currently a non-alliance partner, and I very much doubt that EK would join OW because Qatar Airways are joining in August of this year. I would imagine that QF/EK will come to some sort of agreement between them that will see them code-sharing on each others flights, and customers being able to gain frequent flyer miles jointly. That said, I don't quite understand why BA has suddenly chosen to cancel their code-share "in protest"...isn't this cutting off their nose to spite their face, and could it potentially hurt them financially in the process? Until such an announcement has been made, surely it would be in BA's interests to keep the code-share and ability to collect frequent flyer miles running, and then they can cancel it a few days before or the day before the new agreement between QF/EK comes into effect, thus giving customers more time to adapt to the changes? One question I do have...will this see QF drop LHR from its schedule? Due to the tie-up to EK, I'm assuming most of their customers will now look to transit via DXB, and I don't think that there is enough demand for both QF and EK to operate A380's on the same route...? Perhaps QF/EK can come to some agreement whereby customers can travel SYD-DXB on QF, and then DXB-LHR on EK, similar in a way to the partnership between Virgin Australia and Etihad?
Profile picture for user Matt-100

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7 years 2 months

Posts: 569

I have read rumours that BA will be forming a partnership with CX on the kangaroo route, to replace the one QF ditched. So maybe this is the rationale behind BA's decision to drop the code-share, they have a plan B? What I find really interesting about the whole QF+EK thing is the AUS-DXB leg. It's well documented and well known DXB-EUR works a charm, but Emirates have always struggled to make the Australian leg work. Whether the tie-up with QF will entice more passengers remains to be seen, but I think both airlines are taking quite a large gamble. So there is a chance that if they can't make AUS-DXB profitable, QF could drop it and the onward leg to Europe. Personally I think Qantas should have started off by sending just one of the A380s to DXB and the other to ply the classic SIN route and reviewed how well DXB was doing in 6 months time before committing the second.

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14 years 5 months

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It does amaze me at times how people think large carriers such as BA do things to put themselves out of business, or to seek revenge or to make a protest. I truly believe that in the main these multi-billion dollar businesses are there to grow, thus make money for the shareholders and to invest in the business and any decions such as these are made on a pure business decision as seems the case here?