Virgin Australia says Qantas’s argument its proposed codeshare with Cathay Pacific would not reduce competition is simplistic and incorrect.
Cathay Pacific will add a low-cost carrier (LCC) to its business after agreeing to buy HK Express from HNA Aviation Group for HK$4.93 billion.
Qantas says its proposed codeshare agreement with Cathay Pacific will have no adverse impact on the competitive dynamics on point to point routes between Australia and Hong Kong.
Cathay Pacific says it is active discussions about an acquisition involving local rivals Hong Kong Express, part of the HNA Group of airlines.
Cathay Pacific returned to profitability in calendar 2018 with improved passenger and cargo demand helping offset higher fuel costs and currency movements.