Qantas and Emirates to form alliance

Here is another case of two airlines becoming cosy! Not a merger or takeover, but again the kind of strategic alliance that we have seen with the likes of KLM and Air France and their Sky Team partnership.

 

Qantas Airways has been given initial approval from Australia's competition authority for its proposed alliance with Dubai-based Emirates. The Australian Competition and Consumer Commission (ACCC) said the benefits of the tie-up, such as co-ordinating ticket prices and schedules, would outweigh the reduced competition.

It will make a final decision in March. Qantas and Emirates originally announced their partnership alliance plans in September. Neither airline is investing in the other.

The partnership with Emirates will see Australian carrier Qantas end its existing relationship with British Airways.

Good news for Boeing.

Dubai-based Emirates Airlines has ordered 50 long-range Boeing 777 passenger aircraft in an order worth about $18bn (£11.2bn) at list prices.

The carrier's chairman and chief executive, Sheikh Ahmed bin Saeed al-Maktoum said it was the single largest dollar-value order for Boeing aircraft.

"This order represents a milestone," he said after announcing the contract at the Dubai Airshow.

Emirates has also placed options for more jets, worth another $8bn.

The latest announcement take Emirates' firm orders of the long-range aircraft to 90.

Source:

http://www.bbc.co.uk/news/business-15711213

In the News...

ANOTHER TOYOTA RECALL

Toyota is to recall 8,000 Tacoma pick-up trucks in the US, over fears about defective front drive shafts. The recall involves four-wheel drive Tacomas built from mid-December 2009 to early February 2010.

The move is the latest in a string of recalls in the past few months, totalling more than 8.5 million Toyota vehicles around the world. Previous recalls - including the flagship hybrid Prius - were due to accelerator and brake problems.

Toyota said it was voluntarily recalling "a small production run of certain 2010 model-year Tacoma 4WD trucks".

US RETAIL SALES UP

US retail sales rose more than expected in January, providing a boost to hopes for a strong economic recovery. Sales grew 0.5% month-on-month, while December's figure was revised to a 0.1% fall from a first estimate of a 0.3% fall, the Commerce Department said.

Compared with January last year, sales were up by 4.7%. But separately, a closely-watched survey suggests that confidence among US consumers remains fragile as concerns about unemployment remain.

Retail sales are followed particularly closely in the US, as consumer spending accounts for about 70% of overall US economic activity.

AC MILAN TIE UP EMIRATES DEAL

The Dubai-owned airline Emirates has announced a 60m-euro (£52m, $82m) sponsorship deal with AC Milan. The four-year deal, due to begin in July, will see Emirates become Serie A team AC Milan's shirt sponsor in place of the Austrian betting company BWin.

Emirates already sponsors several football teams including Paris Saint Germain, Hamburg and Arsenal. The airline has a pre-existing sponsorship deal with AC Milan that does not include shirt sponsorship.

Speaking to reporters on Friday, AC Milan's vice president Adriano Galliani said the £52m deal could eventually be worth even more to the club if results on the field go its way.

INDIA FACTORY OUTPUT RISING

India's industrial production has risen at its fastest pace in more than a decade, providing further evidence of the country's strong economic recovery.

Factory output rose by 16.8% in December compared with a year earlier, much faster than analysts had expected. Subdued growth last year as a result of the global economic downturn helped to boost this year's figure in comparison.

The strong growth will strengthen the case for the government to withdraw its stimulus measures, analysts said.

Source: BBC News