Qantas, Emirates form alliance
Qantas Airways entered into an agreement with Emirates and inked a 10 year partnership deal in an attempt to bolster its sagging international division. The Australian airline will now move its European flights hub, currently in Singapore, to Dubai. It will coordinate with Emirates on pricing of tickets, flight scheduling and will put in place a profit sharing model effective April 2013. No equity will change hands.
"This is the most significant partnership the Qantas Group has ever formed with another airline, moving past the traditional alliance model to a new level," said Qantas CEO Alan Joyce. "It will deliver benefits to all parts of the Group."
The Australian airline’s international operations are under severe strain with the international division alone losing AU $450 million in a year while the company lost AU $245 million.
The announcement of a new partnership had a positive effect on Qantas shares which rose 5.8 percent in late morning trade.
Qantas will end its 17-year partnership with British Airways on March 31, 2013.
Entergy Chairman and CEO to resign
Meanwhile, Entergy Corporation(NYSE:ETR) has announced that Chairman and CEO J Wayne Leonard will retire on January 31. Executive Vice-President and Chief Financial Officer Leo Denault will take over. Leonard has been blamed for the slow restoration of electric power after Hurricane Isaac. But company spokesman Chanel Legarde has insisted that the two issues are unrelated, saying "The succession plan we announced today is the result of ongoing conversations with the board of directors that have occurred over many months."
Leonard took over as CEO and joined the board of directors on January 1, 1999. He took up additional role of chairman in 2006.
"During his tenure of financial leadership as CFO, the company delivered the highest operational earnings per share and highest operating cash flow in company history in 2011 and 2010, respectively," according to an Entergy press release.