SAA, QF codeshare extended

THE codeshare between SAA and Qantas has been extended for at least another year.

The International Air Services Commission (IASC) has issued a draft decision for the airlines to continue its codeshare agreement.

The decision comes after Australia’s competition commission questioned the need for the codeshare deal.
In its draft decision the commission said it considers it unlikely that there will be any lessening of competition benefits from continuing the codeshare for a further period.

According to the IASC, Qantas' only direct competitor on the route, V Australia, had a "significant" impact on air fares, increasing competition.

The IASC predicted V Australia would capture 15-20% market share of the Australia-South Africa route should current trends continue. It also noted that Qantas' share has fallen since V Australia's entry.

Tell us: What are your thoughts on this? Let us know by sending your comments...

© Now Media. This content is protected by copyright and may not be adapted or republished. If you would like to discuss cooperation opportunities, please contact: editor@travelnews.co.za.