SINGAPORE -- Loss-making Qantas got a much-needed publicity and share price boost when it made headlines on Thursday over a potential tie-up with Dubai-based Emirates.
A partnership could create an airline powerhouse, capable of making a big dent in the earnings of Singapore Airlines and other rivals. Worse, it could hit Changi Airport if Qantas shifts its hub for the long-haul “kangaroo route” — Australia to Britain flights — from Singapore to Dubai.
Emirates has chosen to stay silent, while Qantas maintains that it is talking with several airlines, including the Dubai carrier, about potential alliances.
A tie-up could take several forms. One is a codeshare deal, where a passenger with a Qantas ticket flies on an Emirates-operated aircraft, and vice-versa. There is also the possibility of Qantas flying to Europe via Dubai, bypassing Singapore. But whatever the final agreement, it actually does not make sense for Qantas to jilt Changi for Dubai.