Published: Mon, July 17, 2017
Health Care | By Oscar Goodwin

Emirates and flydubai Go Beyond Codeshare

Emirates and flydubai Go Beyond Codeshare

The two Dubai state-owned airlines have announced an "extensive partnership agreement" that stops short of a merger but will allow them to issue tickets for each other, coordinate schedules and launch new routes. It adds that the two sides are discussing various additional network and customer initiatives including frequent-flyer alignment.

"This is an exciting and significant development for Emirates, flydubai, and Dubai aviation".

Emirates suffered a 70 percent drop in profit in the year ended March 31 as the low price of crude clipped growth in oil-based Persian Gulf economies, terrorist attacks hurt demand for travel and the company faced US -imposed travel restrictions.

Emirates cited fierce competition and a "relentless rise" in the U.S. dollar as the main factor in falling revenues.

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Emirates in particular has been hit by currency fluctuations, geopolitical uncertainty and United States travel restrictions leading it to post an 82 percent drop in profit in May, its first decline in five years.

The tie-up will include co-ordinated scheduling and integrated collaboration to ensure a beneficial combination of the networks of each carrier, with increased feed and the possibility of opening new routes.

"The new model will give flydubai customers seamless connectivity to Emirates worldwide destinations spanning six continents. For Emirates' customers, it opens up flydubai's robust regional network".

An Emirates spokesperson declined to comment on whether plans would be hatched to construct an internal link between flydubai's hub Terminal 2 and Emirates' Terminal 3.

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"This partnership isn't about savings, it's about extracting commercial value by leveraging the strengths of both companies to accelerate growth", representatives from the airlines said.

Emirates has a wide-body fleet of 259 aircraft, flying to 157 destinations and flydubai operates 58 Next-Generation Boeing 737 aircraft to 95 destinations.

The current joint fleet size is 317 with a combined network of 216 unique destinations.

Emirates says the tie-up will be implemented "over the coming months", with initial "enhanced" codesharing from the fourth quarter of this year.

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