Qantas legal challenge to codeshare ruling

Qantas legal challenge to codeshare ruling
By admin

Qantas is seeking a judicial review into the decision by the aviation regulator not to extend its codeshare with South African Airways beyond the end of 2012.

The airline has filed an application with the Federal Court as it again argued the agreement with SAA is of benefit of the public.
The escalation of the issue to the courtroom follows a ruling by the International Air Services Commission (IASC) to reject a bid by both carriers to extend the codeshare for five years.
The IASC said it would not extend the deal beyond December 31 after declaring it was a deterrent to new entrants between Australia and South Africa.
But after scrutinising the ruling, Qantas has decided not to accept the IASC’s conclusions.
A Qantas spokeswoman said: “We believe the codeshare arrangements are of benefit to the public and we are therefore disappointed that the Commission has indicated it will not approve them beyond the end of this year. Qantas has applied to the Federal Court for a Judicial Review of the decision.”
Qantas has previously stressed that the termination of the codeshare would eventually lead to only one carrier operating between the two countries.
South African Airways declined to comment beyond its statement issued in March when it said it would “review its options and will announce any potential change in due course”.
But Marc Cavaliere, SAA’s vice president in charge of sales and alliances, quoted in the Australian Financial Review, said high fuel prices meant the continuation of the codeshare had never been more important.  

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