Expanded Qantas-Cathay codeshare blocked
An extension of the codeshare arrangement between Qantas and Cathay Pacific has been blocked by Australia’s International Air Services Commission.
The carriers proposed an expansion on their August 2018 agreement which would have added numerous extra domestic Qantas -operated flights, as well as one-way routes beyond Hong Kong operated by Cathay and Cathay Dragon.
It had been opposed by rival Virgin Australia which operates Hong Kong flights from Melbourne and Sydney.
Australia’s competition watchdog also had concerns over consumer choice if granted.
Even though the IASC acknowledged some customer benefits to improved connectivity, it sided with Virgin.
"The commission finds that the variation is likely to entrench and expand the market position of Qantas and Cathay Pacific to the detriment of Virgin Australia’s competitive position and the position of potential future entrants on the route,” it stated.
"If this occurs it is likely to weaken competition on the route, leading to an increase in prices and /or a reduction of other benefits to consumers."
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