It marks a major milestone for the Qantas -- which is trying to turnaround its money-losing international business.
This is a five year strategic alliance between the two airlines which will allow them to co-ordinate on things like scheduling, pricing, and frequent flyer programs.
The main attraction for Qantas customers is that they'll have access to around 30 European destinations by just making one stop in Dubai -- replacing Singapore.
For Emirates, it gives it more access to Australia, allowing it to grow even more aggressively.
Emirates President Tim Clarke, told SBS "I think our presence in Australia was already very large but putting our network next to Qantas's already very strong network in Australia was particularly attractive to us.
"For one, it gave us access to the domestic reach they have, and it gave us better quality in the business because they are much stronger in Australia than we are, particulary in the corparate markets. So bringing the two together was a very neat fit."
The celebrations started with a spectacular flyover Sydney. A Qantas and an Emirates A380 made their way over the city to the airport, passing the Harbour Bridge and Opera House.
Time will tell if that trend will continue, and help turn around the company's loss making international unit, but investors seem to like it -- with shares up around 50 percent since the deal was first announced back in September.
Disclosure: Ricardo is part of a media contingent travelling as guests of Qantas and Emirates.
