Qantas Airways shares have risen almost five per cent after the airline announced a deal with Emirates that leaves London as its sole European destination.
The 10-year partnership between the two carriers, unveiled in Sydney on Thursday, will result in Qantas shifting its European hub to Emirates' home airport in Dubai.
From there, Qantas passengers headed to destinations other than London can transfer to Emirates flights carrying the QF airline code as part of a wide-ranging partnership that also includes reciprocal frequent flyer benefits.
Starting April 2013, Qantas will fly daily from Melbourne and Sydney to London via Dubai.
Passengers wishing to buy Qantas tickets to Europe from other Australian capitals, such as Perth, Adelaide or Brisbane, will be flown on Emirates aircraft.
The Australian flag carrier said it would cease flights to Frankfurt, its only other European destination, and end codeshare arrangements with Cathay Pacific to Rome and Air France to Paris.
The long-running joint-services agreement between Qantas and British Airways will also be terminated.
Qantas chief executive Alan Joyce said the new global aviation partnership was a key plank in turning around the airline's struggling international division, which reported a $450 million loss in 2011/12.
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