Qantas, SAfrica Airways get codeshare OK

Qantas Airways Ltd has received draft approval to extend its code-sharing
arrangement with South African Airways on flights between Australia and South Africa
for a further 12 months.
The International Air Services Commission (IASC) said on Thursday it had granted
draft approval for the two carriers to maintain the code-sharing on the route until
December 2011.
Qantas had sought a two-year extension.
In its draft ruling, the IASC said there was "unlikely to be a lessening of public
benefit from continuing the code share for a further period".
"However, at this stage it is too early to be confident that the improved situation
will be maintained indefinitely," the commission said in its draft report, released
on Thursday.
"In particular, V Australia has been on the route for a short time only and has
operated in an atypical period associated with the World Cup soccer."
Virgin Blue's long-haul offshoot V Australia started flights between Melbourne and
Johannesburg in March this year, flying twice weekly.
The commission said it wanted to see more data associated with the new competitive
dynamic on the route before it could be satisfied that public benefits will not
begin to decline further into the future.
The new code-sharing agreement also required Qantas and South African Airways to
maintain a minimum of 12 services per week on the route, up from 10 previously.
"The previous minimum of 10 services is clearly too low to provide a base level of
frequencies intended to ensure a reasonable level of service provision by the code
share partners," the commission said.
Qantas has had a codesharing arrangement with South African Airways since December
2000.
In a submission to the IASC, the Australian Competition and Consumer Commission said
the recent increase in flights between the two countries had likely diminished the
need for codesharing arrangements between Qantas and South African Airways.
Interested parties have until September 2, 2010, to lodge submissions in response to
the draft decision.
Qantas shares closed up five cents at $2.62 on Thursday.



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