Emirates, South African Airways expand codeshare deal

South African Airways (SAA) will be able to offer its customers seats on flights operated by Emirates between South Africa and Dubai. Above, passengers board a SAA plane at Port Elizabeth International Airport, South Africa. (Reuters)
Updated 18 December 2018
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Emirates, South African Airways expand codeshare deal

  • Deal will improve connectivity between Dubai and Southern Africa
  • Emirates has been flying to South Africa since 1995 and the first codeshare agreement with SAA was signed in 1997

LONDON: Dubai’s flagship airline Emirates is to expand its codesharing agreement with South African Airways (SAA), aiming to improve connectivity between the emirate and locations across Southern Africa.

The expansion of the agreement will support the African airline’s turnaround plan which aims to make a profit by 2021.

SAA is grappling with financial difficulties, having posted a string of losses and forced to rely on government support. Having failed to make a profit since 2011, it is cutting staff numbers and looks to reduce its route network.

“It’s clear that SAA is struggling to survive and so it makes sense for them to coalesce their operations with the powerhouse that is Emirates as opposed to competing head to head, because they simply won’t cut it against them,” said aviation analyst Saj Ahmad at Strategic Aero Research.

“The deal also opens up the possibility of Emirates deploying more flights to places like Cape Town and Johannesburg as well as codesharing on other SAA-regional flights to points that Emirates doesn’t serve.”

Emirates has been flying to South Africa since 1995 and the first codeshare agreement with SAA was signed in 1997.

Under this deal, SAA is able to offer its customers seats on flights operated by Emirates between South Africa and Dubai. This currently includes four daily flights from Johannesburg, three daily flights from Cape Town and one daily flight from Durban.

The new agreement will see this codeshare expand across the airlines’ networks.

“We have seen great success with the codeshare agreement, having enabled greater connectivity to both SAA and Emirates customers, by offering more choice, flexibility and ease of connections to a wide range of cities via Dubai and across more points in Southern Africa,” said Tim Clark, president of Emirates Airline.

“Increasing the scope of our agreement underpins the strong bonds we share with SAA and our belief that this enhanced partnership will enable further success and gain to the airlines and their customers,” he said.

SAA CEO Vuyani Jarana said: “Our route network and that of Emirates complement one another. The expansion of our partnership will further strengthen key focus areas of the implementation of our turnaround plan.”

The agreement will include the two airlines working to improve connecting times via Johannesburg, to make it easier for people to catch flights to popular regional destinations.


US-China trade deal hopes grow as oil prices decline

Updated 19 June 2019
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US-China trade deal hopes grow as oil prices decline

  • Data suggested a smaller-than-expected fall in American crude inventories
  • Preparations underway for Donald Trump to meet Xi Jinping next week at the G20 summit in Osaka

LONDON: Oil prices declined on Wednesday as data suggested a smaller-than-expected fall in American crude inventories, as hopes for a US-China trade deal continue to grow.
Brent crude futures were down 51 cents at $61.72 a barrel.
US West Texas Intermediate crude fell 25 cents to $53.65 a barrel. On Tuesday, it had recorded its biggest daily rise since early January.
After weeks of swelling, US crude stocks fell by 812,000 barrels last week to 482 million, the American Petroleum Institute said on Tuesday, a smaller fall than the 1.1-million-barrel drop analysts had expected.
Official estimates on US crude stockpiles from the US government’s Energy Information Administration are due during afternoon trading.
US President Donald Trump offered some support, saying preparations were underway for him to meet Chinese President Xi Jinping next week at the G20 summit in Osaka, Japan, amid hopes a trade deal could be thrashed out between the two powers. Trump has repeatedly threatened China with tariffs since winning office in 2016.
European Central Bank President Mario Draghi also offered a boost, saying on Tuesday that he would ease policy again if inflation failed to accelerate.
Tensions remain high in the Middle East after last week’s tanker attacks. Fears of a confrontation between Iran and the US have mounted, with Washington blaming Tehran, which has denied any role.
Trump said he was prepared to take military action to stop Iran having a nuclear bomb but left open whether he would approve the use of force to protect Gulf oil supplies.
On Wednesday, oil markets shrugged off a rocket attack on a site in southern Iraq used by foreign oil companies.
“It is interesting to note that the crude oil futures market could not rally on hawks planting bombs in the Strait of Hormuz but could rally on doves planting quantitative easing,” Petromatrix’s Olivier Jakob said in a note.
“This is an oil market that doesn’t know how to react when an oil tanker blows up but knows how to react when the head of a central bank makes some noise.”
Members of the Organization of the Petroleum Exporting Countries have agreed to meet on July 1, followed by a meeting with non-OPEC allies on July 2, after weeks of wrangling over dates.
OPEC and its allies will discuss whether to extend a deal on cutting 1.2 million barrels per day of production that runs out this month.