CATHAY to Codeshare on QANTAS Hong Kong Flights

[pauly7]

Qantas has sought regulatory approval for Cathay Pacific to codeshare on its flights between Australia and Hong Kong.

The apparent expansion of the airlines’ recently-announced codesharing arrangement is revealed in a Qantas application to the International Air Services Commission (IASC), the Australian government body which allocates international airline capacity.

“The International Air Services Commission (the Commission) has received an application from Qantas seeking to vary Determination [2015] IASC 115 (as varied) to permit the use of the capacity for the provision of codeshare services with Cathay Pacific Airways Limited (Cathay Pacific) on the Hong Kong route,” the IASC said on its website on Tuesday.

In a letter to the IASC, Megan Morris, Qantas’s acting head of international affairs wrote that: “it is proposed that Cathay Pacific will offer codeshare services on flights operated by Qantas on the Hong Kong route from 31 March 2019.”

For now Qantas is keeping details of the proposed codeshare expansion under wraps.

READ FULL ARTICLE:
Cathay to codeshare on Qantas Hong Kong flights? - Australian Aviation





Another sign that the once frosty relationship seems to be improving after the first round of codeshare deals between CX and QF late last year. Interesting times!

 

[Himeno]

At the same time that Qantas submitted the request for CX codesharing on the HKG route (https://iasc.gov.au/applications/files/QF_Application_Variation_Hong_Kong_20190108.pdf), they also submitted a request for 400 seats/week to Korea to provide jointed services with CX/KA. (https://iasc.gov.au/applications/files/QF_Application_Capacity_Korea20190108.pdf)

Qantas currently has 500 seats/week to Korea (for 5 years from July 1 17), which they use for the QF367/368 codeshare on OZ.
Looks like they'll be adding codeshares on CX/KA to Korea.

QF also asked to renew their HND rights for another 5 years.

 

[MEL_Traveller]

So... reading between the lines... CX is at full capacity and can't get more. QF is well under capacity and needs to fill its planes with CX customers?

 

[amaroo]

So... reading between the lines... CX is at full capacity and can't get more. QF is well under capacity and needs to fill its planes with CX customers?

Sounds like smart business.

CX as a business isn’t performing very well - full capacity doesn’t = smart business

 

[MEL_Traveller]

Sounds like smart business.

CX as a business isn’t performing very well - full capacity doesn’t = smart business

I thought this too - but then I read somewhere the main issue was CX's fuel hedging (which was apparently really bad, and locked in over a long period), and the underlying business is actually ok? With an expected profit coming up.

 

[pauly7]

So... reading between the lines... CX is at full capacity and can't get more. QF is well under capacity and needs to fill its planes with CX customers?

Or yields have taken a hit on HKG route due VA starting up and discounting their way in to build up a customer base so it’s become less profitable and saturated and CX are looking to deploy their metal on new/more profitable routes?

 

[Wanderlust_tim]

Is there any chance this would mean that QF codeshares would go on CX flights? Am i daring to dream of a possible day time flight out of Asia with a QF flight number?...

 

[MEL_Traveller]

Or yields have taken a hit on HKG route due VA starting up and discounting their way in to build up a customer base so it’s become less profitable and saturated and CX are looking to deploy their metal on new/more profitable routes?

It could be - except i thought CX was actually up-guaging some flights from A30s to 77s?

 

[wandering_fred]

Sounds like smart business.
CX as a business isn’t performing very well - full capacity doesn’t = smart business

While I have found routes that provide "nice" SC returns for QF when returning from Asia, I still check the possibility of CX flights in to PER since they have a few flights a week which don't arrive late evening (something about the 5 hour drive from PER to home).
It seems that CX charges more for the HKG-PER legs than they do for routing HKG-MEL(QF)PER (most of the time). Neither of the two routings are particularly user friendly fares but I suspect they could take one flight a week from their multiple sections to MEL/SYD (say Tues with one less round trip) and increase HKG-PER from 10/week to 12 and see increased profits.... Probably sufficiently politically incorrect to be possible though.

Just wandering
Fred

PS the alternative is MH Z fares to DPS and a JQ Max fare to PER.

 

[jb747]

Another step along the way to the perfect airline....a virtual one.

 

[dajop]

Am i daring to dream of a possible day time flight out of Asia with a QF flight number?...

Already are day flights with QF codes out of 3 Asian cities (but not HKG) .... SIN-BNE and MEL on EK, CAN-SYD and MEL on CZ and TPE-SYD on CI.

 

[Wanderlust_tim]

Already are day flights with QF codes out of 3 Asian cities (but not HKG) .... SIN-BNE and MEL on EK, CAN-SYD and MEL on CZ and TPE-SYD on CI.

Thanks for this. I had forgotten about SIN-MEL on EK. Would still love to have CX onboard.

 

[Himeno]

VA filed a complaint about the proposed codeshare (of course they did), on the last day submissions could be sent. Current Cases and Other Matters
It's likely to lead to IASC asking for more information from QF about the deal.

As mentioned before, based on the other submission QF made at the same time as the CX/HKG codeshare request, it is quite clear that QF wants to put their code on CX/KA flights into Korea.

 

[Mattg]

Qantas has responded to Virgin Australia's concerns. Here is a link to the letter: https://iasc.gov.au/applications/files/IASC_Addtional_information-Hong_Kong_route.pdf

 

[Robert K]

Qantas has responded to Virgin Australia's concerns. Here is a link to the letter: https://iasc.gov.au/applications/files/IASC_Addtional_information-Hong_Kong_route.pdf

Why was Tucker crossed out and Marlene written?

 

[Himeno]

Why was Tucker crossed out and Marlene written?

No idea, but it's done on all the letters sent to IASC.

 

[kamchatsky]

I hope this gets knocked back as it would drive VA out and then they will enjoy their duopoly again.

 

[Mattg]

I hope this gets knocked back as it would drive VA out and then they will enjoy their duopoly again.

I strongly suspect the IASC will come to the same conclusion.

 

[Mattg]

Virgin has now provided a follow-up response to the Commission: https://iasc.gov.au/applications/files/VA-PUBLIC_submission-Hong_Kong_route_(Feb_2019)_(002).pdf

I can't see this being approved, but that's just my personal opinion based on the facts presented so far. We'll see what the IASC says!

 

[Himeno]

Virgin has now provided a follow-up response to the Commission: https://iasc.gov.au/applications/files/VA-PUBLIC_submission-Hong_Kong_route_(Feb_2019)_(002).pdf

I can't see this being approved, but that's just my personal opinion based on the facts presented so far. We'll see what the IASC says!

It makes me wonder what both VA and QF have submitted on the confidential versions.