British Airways and Qantas are restructuring their joint services agreement (JSA) by opening a new premium Singapore Changi lounge and adjusting operations between Australia and the UK.
The move to update the JSA, which has been in place since 1995 and allows the airlines to plan certain routes together and share revenues, is part of Qantas’ plans to turn around loss-making routes.
On London-Singapore-Sydney flights, BA will increase capacity by swapping B777 aircraft for the larger B747. Qantas will continue with its A380 services on the route.
On London-Bangkok-Sydney and London-Hong Kong-Sydney flights, the airlines will divvy up the sectors.
Qantas will only fly from Australia to Bangkok and Hong Kong, ceasing to operate the Bangkok-London and Hong Kong-London sectors.
In turn, BA will operate flights from Bangkok and Hong Kong to London, increasing the latter from 14 to 17 per week, but stop operating the Bangkok-Sydney sector.
The restructured JSA allows Qantas to retire four of its B747 aircraft early, and improve profitability on the “fiercely competitive” London-Australia routes, according to Alan Joyce, Qantas’ CEO.
“Strengthening our relationship with British Airways is an important element of our new strategy for Qantas International,” he said.
“Singapore will become the focal point of the JSA relationship, with daily Qantas A380 services from Melbourne and Sydney and onward to London, increased British Airways capacity and a new premium lounge.
“The new approach is a smarter use of both airlines’ resources that will enhance our competitive position in Asia and in the Australia-Europe market.”