Struggling Australian carrier Qantas on Thursday announced a major global alliance with Emirates that will involve moving its hub for European flights to Dubai from Singapore.
The 10-year tie-up, described by the airlines as the world's leading partnership, is part of Qantas's drive to turn around its fortunes after posting its first annual loss since privatisation in 1995 last month.
Subject to regulatory approval, it goes beyond codesharing to include coordinated pricing, sales and scheduling and a benefit-sharing model.
Neither airline will take equity in the other.
"This agreement represents a step-change for the aviation industry," said Qantas chief Alan Joyce.
"It is far bigger than a codeshare. Or even a joint services agreement. This is the biggest arrangement Qantas has ever entered into with another airline."
Under the deal, Qantas will fly daily A380 services from both Sydney and Melbourne to London via Dubai. Between the two airlines there will be 98 weekly services between Australia and Dubai.
For Emirates customers, it will open up Qantas's Australian domestic network of more than 50 destinations and nearly 5,000 flights per week.