Australia's competition watchdog, the Australian Competition and Consumer Commission (ACCC), has on Thursday awarded a conditional approval to the partnership of Qantas Airways with Emirates as the former reclaims its fading glory in the global airline industry.

Approved for five years rather than the intended 10 years sought by the two airline companies, ACCC said the alliance was considered and allowed because it "has the potential to result in public benefits," which include "cost savings and other efficiencies, a competitive response from rivals on routes between Australia and UK/Europe, stimulation of tourism and trade, as well as enhanced crisis management response."

"This is the right deal for Qantas," Simon Fitzgerald, a Sydney-based analyst, told Bloomberg News. "They can fly to a lot of destinations with this."

Under the agreement, Qantas will sell tickets to 60 new one-stop destinations in Europe, the Middle East and Africa through Emirates' Dubai center. It will also assist the Middle Eastern carrier to revamp its Asian schedules.

The ACCC, however, believed the alliance could pose some disadvantage as Qantas and Emirates currently have overlapping services.

"In most of these regions, there are factors which are likely to mitigate the public detriment, including continuing competition from a number of established airlines," the ACCC said.

The two airline companies had earlier said they will work on price coordinations as well as sales and scheduling. They also said they will work up their respective frequent-flier programs so passengers can earn points on both carriers' flights.

"The ACCC considers that the alliance is likely to result in material, although not substantial, benefits to Australian consumers," the regulator said in a statement.