Virgin Australia opposes expanded Qantas-Cathay Pacific codeshare
Virgin Australia is trying to block rival Qantas’ proposed expanded codeshare agreement with Cathay Pacific.
Virgin claims it will be a bad deal for consumers, resulting in higher fares.
Qantas and Cathay started codesharing last year which enables Qantas customer to book Cathay operated flights between Hong Kong and Perth and Cairns.
Earlier this month Qantas submitted an application to offer codeshare access to Cathay customers on its own Hong Kong flights.
If granted they would begin on March 31.
Qantas flies from Brisbane, Melbourne and Sydney, which are routes Cathay also serves.
This has irked Virgin which claims it would reduce competition and drive up fares.
"Any strengthening of the cooperation with Cathay Pacific is likely to increase the market power that the two carriers individually and collectively hold on the Hong Kong route," Virgin said in a submission to the regulator.
Together, Qantas and Cathay already have a stranglehold on the Australia-Hong Kong market with a more than 90% market share.
Virgin flies to Hong Kong from Melbourne and Sydney.
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