Final nail in the coffin for proposed Qantas-Cathay Pacific codeshare expansion
The fight by Qantas and Cathay Pacific to get their proposed codeshare expansion over the line is finally over, with the International Air Services Commission (IASC) handing down its final decision.
After the commission initially denied the proposed codeshare expansion between the two airlines with a draft ruling in May, Qantas suggested in a June submission that the IASC should permit the deal and monitor the outcome.
“Qantas stated that the commission would be able to review the codeshare in November 2019 (i.e.12 months before the expiry of the determination) as part of the process of renewing the determination,” the IASC said in its final ruling.
“This would allow for five months of implementation of the code share before the commission is able to review the arrangement.”
Under the proposed agreement, Qantas wanted to add its code to an additional 19 one-way routes operated by Cathay/Cathay Dragon from Hong Kong to India, Japan, South Korea and Sri Lanka.
Qantas planned to also add its code to select Cathay services from Hong Kong to Sydney, Melbourne and Brisbane, where passengers are connecting to a Qantas Australian domestic service.
In return, Cathay, would add its code to an additional 32 one-way domestic Australian routes operated by Qantas.
The airline wanted to also add its code to select Qantas services from Sydney, Melbourne and Brisbane to Hong Kong, where passengers are connecting to a Cathay/Cathay Dragon service to another destination in Asia.
Qantas was seeking approval from the IASC for Cathay to the last part of the deal, and did not require approval from to engage in the other three elements of the proposed expanded codeshare arrangement.
The proposed codeshare expansion has been strongly opposed by Virgin Australia and the ACCC ever since it was announced.
In opposing Qantas’ proposal to permit the proposed variation subject to monitoring and review, Virgin Australia in its July submission stated that if the approval was granted, “Qantas would automatically receive the benefit of the presumption in favour of renewal.”
The IASC concluded yesterday that Qantas’ suggestion to permit the codeshare subject to monitoring and review was “not a viable approach”.
“For monitoring to be effective, the commission should be able to identify the potential harms resulting from the variation in a timely way and prevent such harms from occurring or, at least, to substantially mitigate the harms,” it said.
“In this instance, it is not apparent how the commission could monitor the risks identified in this decision in a timely way, within the short period of five months before a review is undertaken.
“To the extent that the monitoring relied upon analysis of changing market share and competitive incentives, reliable information may not be available in a timely way to the commission.
The IASC said there was also a risk “that the harms resulting from the implementation of the variation would not be reversible by the time they were identified such that the route would end up being serviced by only two carriers under a codeshare arrangement”.
A Qantas spokesperson said the airline was “disappointed” with the IASC’s final decision.
“The codeshare has already delivered great benefits for our customers, and expanding it would create even more options for travellers and improve opportunities for frequent flyers,” the spokesperson told Travel Weekly.
“We are reviewing the decision and are considering our next steps.”
In a statement to Travel Weekly, a Cathay Pacific spokesperson said: “We believe that an expanded codeshare would create more options for travellers and improve opportunities for frequent flyers. We will consider our next course of action.”
Virgin Australia has welcomed the IASC’s final decision, with a spokesperson telling Travel Weekly that “it will ensure that there is no distortion in the competitive landscape on the Australia-Hong Kong route”.
“The proposed codeshare would have constrained the ability for other players to effectively compete on this route, which would have had a negative flow-on effect for our customers, as well as impacting tourism and trade,” the spokesperson said.
“Hong Kong remains an important part of our international network and we will continue to offer an exceptional product and service for the travelling public.”
Email the Travel Weekly team at traveldesk@travelweekly.com.au
cathay pacific codeshare codeshare expansion iasc international air services commission qantas virgin australiaLatest News
Airline Review: Singapore Airlines Business Class – A380-800
Join me on my personal review of the iconic Singapore Airlines’ A380-800 business class cabin. Singapore Airlines is renowned for its luxurious and spacious seating in any class, it’s sleek and fine interior reflects a sophisticated yet relaxed charm, promising instant luxury the minute you board. The configuration in business class is 1, 2, 1 […]
South African Airways to relaunch Joburg – Perth flights as economic ties strengthen
South African Airways will fly across the Indian Ocean for the first time since the pandemic today when the first of its relaunched Johannesburg to Perth flights touches down today. The South African Airways flights will connect 40,000 more passengers per year in each direction, between Perth and Johannesburg using Airbus A340-300s. Flight Centre Corporate […]
My journey: Before becoming a travel agent I was… a palliative care nurse
Australind Travel & Cruise, Travellers Choice member Saibra Twigg reveals her life as paediatric nurse then to palliative care before a career leap to travel agent. How did you become a palliative care nurse? ST I went straight from school in nursing and initially specialised in paediatrics, working at Perth’s Princess Margaret Hospital for Children. […]
Emirates unveils future plans with new hub at Al Maktoum International Airport
Emirates has unveiled a glimpse of its future with the news of a new base at Al Maktoum International Airport in Dubai overnight. Also referred to as the Dubai World Central, the airport is undergoing an AUD $53.3b refurbishment. Once complete, it will become the city’s main international hub with five parallel runways and 400 […]
Australia fails to make top 10 destination list for American travellers
Australia's top cities have failed to make the grade with American travellers this northern summer, with no local city in the top.
APT Launches 2025 Asia Adventures
APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]
ANZAC Battlefield travel on the 2025 bucketlist
As Anzac Day dawns, agents prepare for a surge in bookings for the 110th anniversary of the Anzac Cove landings.
Former Channel 9 Getaway host and founder of TRIBE Jules Lund to speak at Travel DAZE
From blond-tipped travel reporter to Travel DAZE speaker, Jules Lund cuts through the BS.
HX’s Roald Amundsen finds aliens in the Antarctic
Forget whales, HX's MS Roald Amundsen captures aliens in the Antarctic - and they're not pretty.
Mayhem in France as 70% of flights face cancellation
I mean it wouldn't be France if there wasn't at least one strike.
Etihad Airways launches double-decker service with world’s only in-air three-room suite
We imagine falling asleep in the three-room suite is superior to falling asleep on your neighbour's shoulder.
Norwegian Cruise Line launches 2024 Europe travel season
Europe certainly has a lot of ports. Its time for Australia to up its game.
“The power of travel for positive change” – Intrepid’s Jenny Gray hails controversial all-women Saudi Arabia trip
There is an awful lot to love about this tour from Intrepid. Where do we sign up?
Princess names the Sun, unveils Sanctuary Collection + Star Princess to Alaska in ’26
A huge bottle of Veuve was smashed into the side of the ship to make things official. So no, we couldn't snag a glass.
Collette special offers across peak northern summer season
If you are craving a trip to Europe then grab this deal with both of your grubby hands.
Air India and All Nippon codeshare between the two countries
Here at TW we agreed that the photo would have worked better if they had swapped planes.
A&K offers minimum 18 weeks paid parental leave
Contrary to what the photo suggests this benefit is only applicable for humans. Back to work Mrs Jumbo.
NH Hotel Group rebrands as Minor Hotels Europe & Americas
Hang around the bends of the hotels. We imagine they will be full of a lot of branded content.
Scenic Eclipse II – the business of creating unforgettable life-changing memories
These cruise brothers from another mother offer a view of cruising on Scenic Eclipse II that is poles apart.
MSC builds new hospital ship with Mercy Ships
If you want to read a story that puts a smile on your face then this is the one for you.
“I peed on myself watching this” – Social media users squirm at Royal Caribbean’s Harmony of The Seas 55ft dive video
TW is not responsible for any involuntary actions your body might have after watching this video.
FLIGHT REVIEW: Qantas Boeing 787 Dreamliner business class
The real bonus is you're unlikely to be around screaming children. Hoorah!
Traveltek offers travel agents new rapid deploy cruise website
As always, if you have any issue with the platform, just turn it off and on again.
Experience whale watching & classical music at the Australian Festival of Chamber Music in Townsville
Disappointedly, the whales do not start singing in tune with the orchestra. Opportunity missed.
Fond, very Fond. London hotel famed for James Bond link adds ‘Classic Comforts’ lunch menu
James Bond author Ian Fleming was so fond if this hotel, it inspired the legendary phrase ‘shaken, not stirred’.
What sets Eclipse Travel apart with Africa expert Hilary Dubyk: Travel Weekly TV
If you want to know more about Africa, then Hilary Dubyk is your person.
Surge in Australians visiting Japan
Feel like all of your friends have just returned from Europe? Now it's Japan.
Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit
Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]
Sydney named 17th best place to work remotely
If you struggle to get a seat within Sydney's coffee shops, you now know why.
W Melbourne grows sales team
We appreciate the thought that has gone into this team photo.
Cunard welcomes new ship Queen Anne
This might be the most impressive ship handover in ship handover history.
Intrepid Travel appoints Yvette Thompson as general manager sales & marketing ANZ
It isn't end-of-day Monday and Yvette Thompson has already nabbed herself an impressive promotion.
Anna Fawcett re-joins Global Touring in newly-created APAC role
With such an impressive CV, Global Touring is no doubt thrilled to have Fawcett back.
“We know our response has been far from perfect” – Emirates’ open letter following Dubai flooding
If you also need to write an apology letter, then this is a pretty good template.
Malolo Island Resort opens brand new Spa
Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]
Virgin Australia’s HILARIOUS second instalment of the ‘Bring on Wonderful’ campaign
We don't use the word 'hilarious' lightly, but this is worthy of the title.