Virgin Australia voices concerns over Qantas codeshare arrangement with Cathay Pacific

    Virgin Australia head of government and international relations Lee-Anne Tomkins, in a submission to the International Air Services Commission (IASC), expressed (23-Jan-2019) “significant concerns” over Qantas‘ proposed utilisation of capacity for codeshare services with Cathay Pacific on the Hong Kong route. Ms Tomkins argued the proposal will “result in an unnecessary expansion of both Qantas and Cathay Pacific’s market power, to the detriment of the travelling public”. Virgin further argued Qantas’ submission does not provide sufficient information for stakeholders to assess impact of the codeshare expansion, including:

    • City pairs served by Qantas on which Cathay Pacific will place its code;
    • Whether reciprocal codeshare services are in prospect, including on city pairs served by both carriers;
    • Whether the codeshare arrangement will be of a free sale or hard block nature.

    Qantas and Cathay Pacific currently hold a combined frequency share of 88% and a combined seat capacity share of 90% on the Hong Kong route.