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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.

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Australia's International Air Services Commission (IASC) has knocked back Qantas's application to forge a deeper codeshare arrangement with Cathay Pacific.

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Cairns will lose its last remaining nonstop link to Hong Kong from October 2019 when Cathay Pacific ends flights to Far North Queensland.

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Virgin Australia says Qantas's argument its proposed codeshare with Cathay Pacific would not reduce competition is simplistic and incorrect.

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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.

Airlines

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.

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