QANTAS and Cathay Pacific have lodged a robust defence of their plans to expand their codeshare agreement on routes between Australia’s east coast capitals and Hong Kong (TD 09 Jan 2019), in response to an invitation from the International Air Services Commission (IASC) to provide further information.
The application, which has been strongly opposed by rival Virgin Australia (TD 24 Jan), would see Cathay offer codeshare services on selected flights operated by Qantas from Sydney, Melbourne and Brisbane to Hong Kong.
However in all cases the sectors would be only sold in conjunction with through journeys to “behind/beyond destinations,” Qantas noted.
If approved, the expanded pact will see Qantas add its code to a total of 34 one-way routes operated by Cathay Pacific/Cathay Dragon from Hong Kong to India, Japan, Myanmar, Vietnam, South Korea and Sri Lanka, and on select Cathay services from Hong Kong to Sydney, Melbourne and Brisbane.
In turn Cathay will add its code to a total of 57 one-way routes in the Qantas Australian domestic network, as well as selected Qantas flights to Hong Kong from Sydney, Melbourne and Brisbane.
The updated agreement prohibits either party from selling airfares on respective codeshare flights for the origin/destination routes where both airlines fly – namely point-to-point routes between Hong Kong and Sydney, Melbourne and Brisbane.
QF noted that routes between Australia and Hong Kong are growing in terms of passenger demand, while intense competition has driven a range of innovation and improved options from Qantas, Virgin Australia, Cathay and the Virgin/HNA Group/Hong Kong Airlines alliance.
“The proposal represents a pro-competitive expansion of each carrier’s ability to sell and market itineraries, and will not substantially lessen competition on any relevant market,” Qantas and Cathay claimed.
The response highlights a range of public benefits, including boosting tourism and trade, while also giving QF better options to India given changes to the distribution platforms of Jet Airways & Air India (TD 23 Nov).
Further submissions are now sought by the IASC, with a deadline of 25 Feb.
Source: traveldaily