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Australia's competition watchdog on Thursday gave Qantas and Emirates Airlines permission to launch their global alliance although final approval is still pending.
The Australian Competition and Consumer Commission, which gave the carriers preliminary approval in December to combine operations for an initial five years, said that practical sales, marketing and other steps could now start.
"The ACCC is allowing Qantas and Emirates to start implementing their alliance because of the long lead time required to market and sell tickets before the commencement of long-haul services," said ACCC chairman Rod Sims.
"In making its decision, the ACCC has accepted written assurances from the parties that should the ACCC ultimately decide not to allow the alliance to go ahead, the airlines will accommodate consumers' bookings."
The regulator said it anticipated making a final decision in March.
Under the proposal, which will be fully implemented from April, the airlines will coordinate ticket prices and flight schedules and Qantas will shift its hub for European flights to Dubai from Singapore.
It also means an end to Qantas's partnership with British Airways on the so-called kangaroo route to London, which has spanned nearly two decades.
The tie-up is seen as vital to the sustainability of Qantas, which last year posted its first annual deficit since privatisation in 1995 due to tough regional competition and high fuel costs for its international arm.
Sims said the ACCC had determined in December that "the public benefits resulting from the alliance are likely to outweigh the public detriment ... where Qantas and Emirates offer overlapping services".
But he said New Zealand had been identified as a key market where competition could be eroded by the Qantas-Emirates deal and the ACCC had therefore exempted it from the new permissions for now.
"The ACCC is granting interim authorisation on the condition that the applicants do not engage in the conduct for which authorisation is sought in relation to services between Australia and New Zealand," Sims said.
He added that the regulator "may review its decision on interim authorisation at any time and it should not be taken to be indicative of whether or not final authorisation will be granted".
Qantas chief Alan Joyce said the decision meant pricing, capacity and scheduling could now be coordinated with Emirates and one-stop trips could be booked across their combined networks, boosting tourism.
Once final approval is granted, Qantas will fly daily Airbus A380 services from Sydney and Melbourne to London via Dubai, meaning that the two airlines will operate 98 weekly services between Australia and the Emirates Gulf hub.
For Emirates customers, the alliance opens up Qantas's Australian domestic network of more than 50 destinations and nearly 5,000 flights per week.
Dubai Airports has earmarked $7.8 billion to further expand the capacity of the international travel hub and expects to handle 75 million passengers by 2015 and 98 million by 2020. Some 57 million passengers were expected to use Dubai International in 2012.
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Dubai's Emirates Airlines began operations Wednesday from a $3 billion new concourse dedicated to Airbus' A380 superjumbos at the Gulf city-state's rapidly-expanding airport.
Concourse A, which cost $3 billion (2.3 billion euros) to build, gives Emirates -- one of the fastest-growing carriers -- an additional airport capacity of 15 million passengers a year, the company said.
The expansion takes place as the CAPA Centre for Aviation said Emirates could become this year the world's second-biggest carrier in terms of capacity, right after United Airlines, and way ahead of legacy European carriers.
Flight EK003 took off to London Heathrow from Concourse A, which will become "home of the Emirates A380," and add a capacity to handle 15 million passengers a year, said a statement by Emirates -- one of the world's fastest-growing carriers.
The new extension to Terminal 3, featuring 20 gates specifically designed to accommodate Airbus' longhaul airliners, will open gradually, with just four gates operational on Wednesday, Dubai Airports chief executive Paul Griffiths said in another statement.
"This is a historic and momentous occasion, marking another world first from Emirates," said Sheikh Ahmed bin Saeed Al-Maktoum, chairman of Emirates and of Dubai Airports.
The government-owned carrier is the largest operator of A380, with a fleet of 31 and another 59 units on order.
The new concourse spreads across 11 floors with a total area of 528,000 square metres (5.7 million square feet). It cost $3 billion to build.
Dubai Airports has undertaken a $7.8 billion to further expand the capacity of the international travel hub, as it expects to handle 75 million passengers by 2015 and 98 million passengers by 2020.
It expected the number of passengers who used Dubai International airport in 2012 to be around 57 million.
The new facility will be available to A380 flights to Europe operated by Australia's Qantas, as per the global partnership announced recently and awaiting the approval of the Australian Competition and Consumer Commission, Emirates said.
Emirates had moved its operations to Terminal 3 in 2008, when the new complex opened dedicated to the national carrier of Dubai, leaving the older Terminal One to foreign airlines.
The new facility will be available to A380 flights to Europe operated by Australia's Qantas, as per the global partnership announced recently and awaiting the approval of the Australian Competition and Consumer Commission, Emirates said.
Emirates has a fleet of 195 wide-body Airbus and Boeing, and has some 204 units on orders worth more than $74 billion, it said. It flies to 128 destinations in 74 countries.
The carrier, which began operations in 1985 with two leased planes, has become a major competitor of legacy airlines, turning Dubai into a major transit hub for travel between Europe, Asia and Australasia.
Sydney-based CAPA said this week Emirates remained last year third in global ranking of world's airlines by capacity, with 4.993 billion available seat kilometres (ASKs), compared to 6.15 billion ASKs for United Airlines thanks to its merger with Continental, and 5.64 billion ASKs for Delta Air Lines.
But Emirates registered a whopping growth of 18.4 percent in ASKs last year, compared to a drop of 0.3 percent by Delta.
This put Emirates ahead of many traditional airlines, including British Airways, which was ranked seventh with 3.049 billion ASKs, and Air France, which followed with 2.825 billion ASKs.
Other Gulf carriers, vying to grab a chunk of the trans-continental travel market, followed behind. Qatar Airways rose to 17th place, with 1.798 billion ASKs, and Abu Dhabi's Etihad advanced to 28th, with 1.135 billion ASKs.
In addition to Dubai International Airport, the busiest regional hub, the city-state is developing another airport.
Dubai World Central-Al Maktoum International has been open for cargo since 2010, but passenger operations have been repeatedly delayed.
The airport, launched at the height of Dubai's rapid economic growth, is touted to become the world's largest with a capacity to handle 160 million passengers annually.
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