Emirates expands codeshare with struggling South African Airways

Emirates and financially embattled South African Airways are expanding their codeshare agreement to include new destinations for both carriers. The two struck a codeshare deal in 1997 after Emirates launched services to South Africa in 1995. In 2017-18, that saw about 90,000 passengers benefit as SAA offered seats on four daily Emirates flights from Johannesburg, three from Cape Town and one from Durban. The new deal, which is subject to government approval, will see them strengthen the existing deal “across a wide spectrum of commercial and customer touchpoints”. READ our ratings for South African Airways. This includes plans to enhance links between Emirates’ Skywards and SAA’s Voyager frequent flyer programs as well as other areas of bilateral cooperation. South African Airways has not made a profit since 2011 and is expected to make another big loss this year despite a further 5-billion-rand ($US350m) cash injection in October by the government to allow it to pay creditors and suppliers. The airline is looking at cutting routes, fleet and its 10,000 plus workforce as it seeks to restructure and chief executive Vuyani Jarana has expressed optimism it will break even within a few years. But South Africa’s Mail & Guardian reported this week the airline was struggling to pay salaries and it would need to be propped up to the tune of a further 17 billion rand. “This agreement marks a significant forward step in the execution of our strategy and in transforming our business,’’ Jarana said about the Emirates’ agreement. “It will enable us to explore and leverage synergies between ourselves in a much more enhanced relationship of mutual benefit. “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 South African government has indicated that SAA will need an equity partner in the longer term.