Emirates airline and United Airlines announce codeshare agreement


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Emirates airline and United Airlines have announced a codeshare agreement that executives promised would “terrify our competitors”, with non-stop flights between Newark and Dubai included in the deal.

The respective airlines hosted an event on Wednesday at Dulles International Airport near Washington to announce the codeshare. They unveiled a pair of their Boeing 777-300ER planes on the tarmac as cabin crew in Emirates and United uniforms appeared on stage.

From November, Emirates customers flying into Chicago, San Francisco and Houston — three of the biggest business hubs in the US — will be able to easily make connections on United flights to and from about 200 cities across the Americas on a single ticket.

  • Emirates cabin crew in the airline's brown, white and red uniforms. Getty
    Emirates cabin crew in the airline's brown, white and red uniforms. Getty
  • Emirates was rated the world’s safest airline in January 2022 for the second year in a row. Reuters
    Emirates was rated the world’s safest airline in January 2022 for the second year in a row. Reuters
  • An Emirates Boeing 777-200LR aircraft mid-flight. Photo: Emirates
    An Emirates Boeing 777-200LR aircraft mid-flight. Photo: Emirates
  • Emirates airline's Boeing 777-300ER jets at Dubai International Airport. Reuters
    Emirates airline's Boeing 777-300ER jets at Dubai International Airport. Reuters
  • Travellers at Dubai International Airport's Terminal 3. Chris Whiteoak / The National
    Travellers at Dubai International Airport's Terminal 3. Chris Whiteoak / The National
  • Emirates has first and business class lounges around the world. Photos: Emirates
    Emirates has first and business class lounges around the world. Photos: Emirates
  • A fast-track gate that uses face and iris-recognition technology at Dubai International Airport. The biometric system is being used at 122 smart gates at the airport's arrival and departure terminals. AFP
    A fast-track gate that uses face and iris-recognition technology at Dubai International Airport. The biometric system is being used at 122 smart gates at the airport's arrival and departure terminals. AFP
  • An Emirates cabin crew staff member demonstrates new health and safety measures introduced after the onset of the Covid-19 pandemic. Photo: Emirates
    An Emirates cabin crew staff member demonstrates new health and safety measures introduced after the onset of the Covid-19 pandemic. Photo: Emirates
  • Emirates has fully enclosed private suites in first class. Photo: Emirates
    Emirates has fully enclosed private suites in first class. Photo: Emirates
  • An Emirates Airbus A380 aircraft on the tarmac at the 2021 Dubai Airshow. AFP
    An Emirates Airbus A380 aircraft on the tarmac at the 2021 Dubai Airshow. AFP
  • Emirates, Etihad, flydubai and Air Arabia aircraft perform a flypast over the UAE. Emirates
    Emirates, Etihad, flydubai and Air Arabia aircraft perform a flypast over the UAE. Emirates

At the eight other US airports served by Emirates — Boston's Logan International, Dallas-Fort Worth, LAX in Los Angeles, Miami International, New York's JFK, Florida's Orlando International, Seattle-Tacoma in Washington state and Dulles — the airlines will have an interline arrangement in place.

Emirates airline's president Tim Clark and United chief executive Scott Kirby touted the partnership as a major moment in “a robust pandemic recovery”.

Both airlines have recently announced significant investments to improve customer experience, including $2 billion from Emirates to retrofit more than 120 aircraft. Photo: United Airlines
Both airlines have recently announced significant investments to improve customer experience, including $2 billion from Emirates to retrofit more than 120 aircraft. Photo: United Airlines

“We welcome United's return to Dubai next year, where our Dubai help essentially becomes a gateway for United to reach Asia, Africa and the Middle East via the combined network of Emirates and flydubai,” Mr Clark said.

“This will defy the laws of physics when it comes to moving people across the planet. This is going to terrify our competitors.”

  • Emirates will offer passengers new and improved choices starting from August. All photos: Emirates
    Emirates will offer passengers new and improved choices starting from August. All photos: Emirates
  • Passengers can order cinema snacks as they browse through the 5,000 channels on Emirates’ ice inflight entertainment system.
    Passengers can order cinema snacks as they browse through the 5,000 channels on Emirates’ ice inflight entertainment system.
  • Passengers can now have unlimited portions of Persian caviar as part of the dine on demand service.
    Passengers can now have unlimited portions of Persian caviar as part of the dine on demand service.
  • Vegans, or anyone interested in a healthy plant-based meal, can opt for gourmet dishes.
    Vegans, or anyone interested in a healthy plant-based meal, can opt for gourmet dishes.
  • New menus will also be introduced to business and economy on September 1.
    New menus will also be introduced to business and economy on September 1.

Codeshares are business arrangements in which two or more airlines agree to market and publish a particular flight as part of their own schedule or timetable. Only one airline operates the flight, but the other airlines marketing it can add their own unique flight number for marketing purposes and frequent-flyer programmes. Airlines use such pacts to expand their networks at little extra cost.

"United’s new flight to Dubai and our complementary networks will make global travel easier for millions of our customers, helping boost local economies and strengthen cultural ties," Mr Kirby said.

The agreement will allow Emirates to boost connectivity to US domestic markets and the Americas ― and offer a better value proposition for passengers with more seamless travel and increase load factors on its planes, said Andre Martins, head of transport, infrastructure and services for India, Middle East and Africa at Oliver Wyman.

United will widen its access to markets in the Middle East, Africa and Asia, where Emirates has a strong presence. This will increase the number of possible destinations through the networks of the Gulf airline and its sister airline Flydubai, Mr Martins said. United will also penetrate markets that were previously difficult to enter due to lack of bilateral agreements or difficult economics, he said. In May, United started direct flights from Washington DC to Amman Jordan three times a week.

The airlines' deal will "without a doubt ... reshape the industry in terms of the connectivity being offered and will benefit the two airlines on both sides of the Atlantic," Mr Martins said.

Mr Clark has shunned the idea of joining one of the global airline alliances, favouring instead bilateral agreements and partnerships such as Emirates' joint venture with Australia's Qantas Airways.

He has publicly endorsed an Emirates partnership with one of the “big three” US airlines since mid-2020, as the Covid-19 pandemic first unfolded and shook the aviation industry.

"The partnership between Emirates and United could generate huge amounts of revenue for both, opening up new traffic lanes and markets for both carriers," Linus Benjamin Bauer, founder and managing director of Bauer Aviation Advisory, said.

United’s direct service from Newark to Dubai will also "steal a chunk" of the passenger volume on one-stop flights from the US to the UAE via Star Alliance hubs in Europe, he added.

The "strong business case" for the Emirates-United partnership, coupled with the strong demand in both directions, can offset the higher operational complexity and inflexibility that can sometimes come with establishing new codesharing or interlining agreements, Mr Bauer said.

The Emirates-United partnership is likely to help the airlines to meet demand for lucrative international travel, which has recovered slower than domestic trips from the Covid-19 pandemic in most markets. Emirates, the world’s largest airline on international routes, does not have a domestic market.

The agreement marks a new era of co-operation following a years-long rivalry between the global airline over alleged government subsidies, which Gulf airlines have strongly denied.

The deal is likely to help United to compete better for customers flying to the Gulf region, after a recently expanded American Airlines deal with Qatar Airways raised the stakes.

American Airlines and Qatar Airways expanded their agreement to an additional 16 countries in June. The former said that the expansion would establish it “as the only US carrier to serve the Gulf region, seamlessly connecting through Doha with Qatar Airways”.

Abu Dhabi's Etihad Airways is also expanding a codeshare pact with US airline JetBlue to increase flights to New York.

For United flyers in the US, the deal may signal easier travel to India, too.

Emirates is the biggest foreign airline serving India, where direct flights from the US have become more complicated recently with Russian airspace closures.

The deal also comes as the US faces a severe pilot shortage.

Management consulting firm Oliver Wyman estimates the industry is facing a deficit of about 8,000 pilots, or 11 per cent of the total workforce. It says the shortfall could reach 30,000 pilots by 2025.

Mr Clark told Bloomberg TV that he expects Emirates to begin securing Boeing's long-delayed 777X jets in 2025.

The airline, which has been facing delays in deliveries of new widebodies as it seeks to ramp up growth, is also in discussions with Airbus for quicker delivery of its A350 widebodies. The airline expects to obtain the first deliveries in the summer of 2024.

Emirates is currently flying 70 of its 118 A380 superjumbos as it expects a return to pre-pandemic traffic levels in 2023.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.

Updated: September 15, 2022, 9:51 AM