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.
Australia’s competition watchdog and Virgin Australia have argued a proposed codeshare agreement between Cathay Pacific and Qantas would lead to a lessening of competition on Australia-Hong Kong routes.
Qantas has sought to reassure regulators its proposed codeshare with Cathay Pacific would not harm competition and instead offer travellers more choice for travel between Australia and Asia.
Hong Kong Airlines will exit the Oceania market entirely from May 2019 when it ends nonstop flights to New Zealand’s biggest city Auckland.