Qantas and Telstra think big with new alliance

By Phil Boeyen, ShareChat Business News Editor

Thursday 10th August 2000

ASX market giants Telstra and Qantas are expecting hundreds of million of dollars in extra business to come their way from a new alliance.

The telco and airline are beefing up their already strong relationship by offering each other's customers a range of exclusive products, such as co-branded mobile phones aimed at business travellers.

The companies say the new offerings "will deliver our customers significant additional value compared with the offerings currently made separately."

Customers will get Qantas frequent flyer miles when they use co-branded Telstra services, and frequent flyers will be able to access services at Telstra's online portal.

The alliance plans to makes good use of the companies' customer and shareholder databases, including Qantas' 2.4 million frequent flyers and Telstra's one million plus online users.

One of the first product offerings under the Qantas-Telstra banner is a mobile telephone service to be launched within a month. Telstra expects the new service to attract at least 200,000 extra mobile customers over the next few years, and expects a similar number will join the co-branded internet service.

Qantas says the alliance agreement is a key element in its strategy to become one of Australia's leading e-commerce brands.

The two companies have already flexed their co-branding muscle by turning the Qantas Telstra Visa card into one of the most successful card products in Australia, with around one million cardholders.

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