Qantas requests extension for QFSAA code share pact

first_img<a href=”” target=”_blank”><img src=”;cb=INSERT_RANDOM_NUMBER_HERE&amp;n=a5c63036″ border=”0″ alt=””></a> Source = e-Travel Blackboard: C.F Qantas has applied for its code share agreement with South African Airways between Sydney and Johannesburg to be extended for a further two years. Group executive, David Epstein said, “Qantas believes that the continuation of the code share arrangements provides an efficient use of capacity that enhances the viability of the carriers in the face of increasing competition, and maximizes the public benefit. “Discontinuing the code share arrangements would result in significant increases in average costs for both airlines and erode these public benefits.” Epstein said the current QF/SAA code share agreement had delivered a range of benefits including enhanced frequency and schedule choice between South Africa and Australia and the promotion of both Sydney and Perth by SAA. In its application to the International Air Services Commission (IASC), Qantas also admitted that its sales during the 2010 FIFA World Cup had been disappointing. “Qantas had hoped the South Africa route would gain a one-off short term demand injection… however, the level of bookings received over this period has been disappointing.” “The Soccer World Cup 2010 has had a weaker-than-expected impact on tourism to South Africa,” Epstein said in the IASC application. Epstein also reported that the Qantas’ market share to Johannesburg declined to 39.1% in April, while SAA’s market share was 27.5%. Qantas’ newest competitor on the route V Australia claimed 14.8% of the market share in its first month of operation. Epstein also confirmed plans to remove the QF first class cabins on Boeing 747s flying to South Africa effective from late 2011, due to lack in demand.  last_img read more