The Australian Competition and Consumer Commission has today given the final tick of approval for the Qantas-Emirates strategic alliance which the airlines proposed back in September.
The decision came as no surprise, after the competition watchdog gave the deal its interim authorisation earlier this year, so that the two airlines could start planning and aligning their schedules.
The alliance means Qantas and Emirates can now co-operate in areas like maintenance and crew training, along with the joint purchase of things like fuel, which will make it more cost effective, much like when consumers buy things in bulk.
Catering and aircraft cleaning service co-ordination was not sought, because of competition concerns.
To go ahead though, they'll need to maintain existing capacity on four overlapping routes from Australia to New Zealand.
This is to ensure competition remains between the two countries in one of the busiest passageways.
In fact, most inbound movement into Australia comes from New Zealand.
Watch Ricardo's interview with Allan Joyce
The biggest change customers will see from the new alliance is the re-routing of the Kangaroo Route.
Instead of a Singapore stopover, Qantas flights from Sydney and Melbourne will now pass through Dubai.
It means that customers can then jump onto an Emirates flight at Dubai International to connect to a total of 32 destinations in Europe, or 65 if you include North Africa and the Middle-East.
Of course, you can remain with Qantas to head to London.
Previously, under the British Airways alliance, many Qantas customers had to fly to London before bouncing back to other final destinations like Barcelona or Madrid.
There has been some talk of longer layover times depending on destinations, which some analysts expect to be smoothed out over time.
Qantas insists its flights from Melbourne and Sydney to London via Dubai will be about 30 minutes shorter than its previous route, with a stopover of around 1 and a half hours.
However, Australian travellers from outside Melbourne or Sydney will need to fly into these two cities if they want to be on a Qantas flight through to London, otherwise, they'll need to board a codeshare Emirates flight to reach Europe.
This deal, according to its CEO Alan Joyce, is crucial to the survival of Qantas International.
Structural changes at the company have seen losses at its international business narrow from $200million to $91million in the last six months of 2012.
Interestingly though, in its decision to green-light the alliance, the ACCC said that it does not accept that Qantas International is in "terminal decline" or unable to compete effectively or profitably without an alliance.
I asked CAPA aviation analyst Peter Harbison about that, and in a statement he told me: "Qantas simply can no longer be a strong competitor once it has to stop to refuel, because there are then so many intermediate airlines that can offer better frequencies and better selections of daily one-stop routes, and better prices."
Speaking of prices, in its initial press release announcing the partnership plan in September, Qantas noted that the alliance "includes integrated network collaboration with coordinated pricing."
That seems to have not happened yet, with some Qantas flights on the same Emirates route costing around $400 more to Europe.
I'll try to get a clearer indication on that from CEO Alan Joyce, when I speak to him on board the inaugural flight to Dubai. Qantas is taking a media team to test the experience.
Analysts meanwhile say price coordination could be an issue which will be smoothed out over time, or it could be a strategy because Qantas is seen as a premium brand.
While some may argue that Qantas is seen as too old to be seen as premium, services to Europe will predominately be on its newer planes.
Frequent flyer points between the two airlines will mostly be shared.
The focus on Dubai is strategic, with more Arabic Airlines expanding successfully.
Abu Dhabi-based Etihad Airlines, which is run by an Australian by the way, won best airline in the 2012 World Travel Awards.
Virgin Australia has an alliance with Etihad, with the UAE company taking a near-10 per cent equity stake Virgin Australia.
Emirates meanwhile has been gaining market share.
When it comes to international passengers into and out of Australia, Emirates has increased its share from 7.1 per cent in 2007 to 8.2 per cent in 2012 according to figures from the Australian Government.
Qantas' share meanwhile, is down from 34.5 per cent in 2002, to 28.3 per cent in 2007, to 18.1 per cent last year.
Whether this means Emirates will use this deal as an opportunity to grow its market share even more, remains to be seen.
It does go to show however how the Middle-East as a hub is growing in importance.
Dubai International Airport is undergoing significant growth.
So much so that it plans to spread into a second existing airport over the next 10 years.
By 2015, Dubai International expects to be the world's busiest airport.
Earlier this year, it opened up the world's first and only dedicated A380 concourse, which will be solely used by Emirates and now Qantas.
Dubai as a destination is becoming increasingly popular, and tourism is one of its most important economic sources.
Its geographical location helps. The city is four hours flight away from around one third of the world's population.
Passengers do however need to be aware of the cultural differences between the United Arab Emirates and Australia.
The Australian government notes through its Smart Traveller website, "medications available over the counter or by prescription in Australia may be illegal in the UAE. There are strict laws on personal conduct, particularly in regard to sex and personal relationships, as well as the consumption and possession of alcohol."
There have been reports of incidents at Dubai Airport where passengers have been arrested for breaking such rules.
Similarly though, Singapore also has tough penalties for anyone breaking the law.
And when it comes to Singapore, and Asia, the region is by no means out of Qantas' sights.
The company is focusing on Asia, by expanding its Jetstar brand, including the soon to be launched Jetstar Hong Kong.
Jetstar is the standout in the Qantas portfolio, along with the Qantas brand domestically.
What will be interesting is to see whether this all means we'll see less and less Qantas planes in the air.
There is no doubt the global industry is consolidating, and Qantas would argue partnerships like this with Emirates is necessary in a tough competitive environment, especially given the regulatory limitations.
In an interview to be broadcast on SBS World News Australia next week, Peter Harbison told me that the Qantas Sale Act which governs the company, serves no useful purpose.
The law prohibits foreign ownership of Qantas to 49 per cent, and of that, a maximum of 35 per cent can be a foreign-owned airline, with an individual limited to 25 per cent.
In the meantime, the company would argue that these partnerships are essential for the success and profitability of its international division.
At the end of the day, while the Act persists to protect Australia's national interest in the airline, as a listed company, one of Qantas' main priorities would be not just to its stakeholders, but its shareholders as well.
Its share price hovered at a low of around $1 in July last year, and has steadily risen since then, to $1.76 today, but is still nowhere near the $5.45 Airline Partners Australia takeover bid of December 2006.
No doubt, the company is now looking forward, or west, to better days.
Disclosure: Ricardo is part of a media contingent travelling as guests of Qantas and Emirates.
