IAG and Qantas to end agreement after 17 years

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Airlines Qantas and International Airlines Group (IAG) are to terminate their joint business arrangement at the end of March next year, following Qantas's decision to hook up with the Emirates airline.

The joint business was established in 1995 to enable close commercial co-operation on British Airways' and Qantas's services between the UK and Australia. The airlines will continue to work together as part of the oneworld alliance and through bilateral code shares, a statement from British Airways owner IAG said.

"This is a small part of our overall network and this move fits in with changes in our global strategy. Asia has become a key market focus for IAG and we're talking to a number of airlines about alternative options for us," revealed IAG's Chief Executive, Willie Walsh, adding that the termination of the joint business will not have a negative impact on the group's financial targets.

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British Airways will contact any customers due to travel after March 31, 2013, whose bookings may be affected by changes to the joint business, to discuss alternative travel options.

JH