Australia's competition watchdog has given Virgin Australia the go-ahead to establish a deeper partnership with Virgin Atlantic.
Virgin Australia says Qantas has provided no new evidence to justify a re-assessment of its proposed codeshare with Cathay Pacific on Australia-Hong Kong routes.
Qantas says the proposed codeshare with Cathay Pacific could go ahead subject to a period of review to determine if any "hypothetical concerns" eventuated.
Cathay Pacific says a proposed codeshare agreement with Qantas would encourage more tourists to visit Australia and benefit the national economy.
Virgin Australia is seeking approval deepen its partnership with Virgin Atlantic on flights between Australia and the United Kingdom.
Australia's International Air Services Commission (IASC) has knocked back Qantas's application to forge a deeper codeshare arrangement with Cathay Pacific.