Qantas will seek to reverse a draft ruling from Australia regulators denying the airline approval to allow Cathay Pacific to codeshare on flight between Australia and Hong Kong.
Australia's International Air Services Commission (IASC) has knocked back Qantas's application to forge a deeper codeshare arrangement with Cathay Pacific.
Cairns will lose its last remaining nonstop link to Hong Kong from October 2019 when Cathay Pacific ends flights to Far North Queensland.
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.