Qantas agrees to alliance with Emirates, no equity stake

Tol replace Singapore with Dubai as hub for European flights, coordinate pricing and sales with Emirates

Australia's struggling Qantas Airways said on Thursday has agreed to an alliance with Dubai's Emirates - a key step in its efforts to shore up its loss-making international business.

Under the 10-year partnership, Qantas will replace Singapore with Dubai as its hub for European flights and coordinate pricing and sales with Emirates. The Australian airline will end its existing relationship with British Airways in March 2013 as a result of the new alliance.

The arrangement will allow Qantas to cut loss-making international routes and focus on its profitable domestic and budget operations, while helping Emirates meet competition from its main state-backed Abu Dhabi rivals Etihad Airways and Qatar Airways.

The alliance is deeper than a straightforward code-share arrangement - where airlines share some flights - but stops short of a global revenue-sharing deal or equity injection.