Saa Quantas Code Share Agreement To Be Terminated

[Biker]

Quote:

Australia's air services regulator has rejected a bid by Qantas Airways and South African Airways (SAA) to continue their code-sharing alliance on flights between the two countries.

The International Air Services Commission (IASC) on Friday denied the airlines' request to extend their existing arrangements beyond December 31 this year.

The commission said there was only limited competition for passengers travelling between Australia and South Africa and the code share provided a poor substitute for direct competition.

"The two airlines have an effective duopoly on the main routes (from Sydney and Perth)," the IASC ruling said.

Qantas, which had called for a five-year extension to the alliance, argued in response to an initial ruling in November, 2011 that one or both carriers could withdraw from the route if the partnership did not continue.

SAA general manager for commercial Theunis Potgieter said on Friday the airline was reviewing its options and would announce any potential changes in due course.

"We would like to assure our valuable clients of SAA's long-term commitment to the Australian market," Mr Potgieter said in a statement.

Qantas said it was disappointed by the decision and was studying the ruling closely.

"We believe the code share arrangements are of benefit to the public," Qantas said in a statement on Friday.

The IASC report noted that while the Competition Commission of South Africa had allowed SAA to continue with the code-share arrangements until 31 December 2012, it also expressed apprehension regarding any further extension.

In its decision, the IASC said there were marginal competitive benefits from approving the code share in the short term.

Any competitive benefits were uncertain and possibly negative in the long term, it said.

"The continued existence of the code share agreement discourages entry and discourages competition between partner airlines from gateway cities other than Sydney and Perth," the IASC said.

SAA flies from Perth to Johannesburg, while Qantas operates from Sydney to the South African capital.

Under their alliance, both carriers were required to operate a minimum of 10 services a week between Australia and South Africa.

[Donovan83]

Does this mean that the flight between JNB and PER will be a proper Qantas flight?!

*does a little dance*

That's fantastic news! I've flown the JNB>PER route before on SAA planes and you can really feel the difference. Qantas is very no-frills, but it reminds me of a time when air travel was polite and friendly and where the cabin staff try to make your trip pleasant and nice. Heck, I couldn't believe it when on the one flight (where no food was actually even meant to be served in the first place) they found they had about 15 extra chicken mayo sarmies. So the flight attendants asked if anyone would like seconds!

Then theres SAA: their planes stink, their air hostesses (and their attitudes) stink, it's just Proudly SA all the way on that stupid airline. I can't believe I have to fly on them again... I really hope they have improved their service since 2009. I won't hold my breath. At least we can turn on our iPads to watch movies now (holy 21st century, SAA!) without being snapped at.

Brilliant news!

[Emille]

i think competition is good and the code share is bad for prices/customers.

great news then.

[Serendipity]

Hopefully if this happens VAustralia can get back in the air on that route!!! That will seriously make it competitive and we will be the ones to benefit

[Biker]

Here is the shocking bit. If SAA and Quantas fly out of Sydney - each with their own planes and let's say Quantas is more expensive than SAA, I will still fly Quantas because of the service being so much better.

Example 1: I have yet to see a Quantas plane flying international and the whole entertainment system not even working.

Example 2: Quantas flight running late (30-45 minutes) due to jet stream. Still 3 hours away from landing, 2 hours from nearest land, they already started reorganizing connecting flights for passengers. So they make an announcement to appologise and the crew came to each person individually whom they knew had connecting flights and gave them their new boarding times and flight numbers. Not only that, but also the person in front of me whom they could not get a connecting flight for, they booked them into a hotel and sorted the next day flight and paid for all of it!!

So, despite Quantas upset a lot of people by grounding the whole fleet earlier this year, I will still rather take my chances with them.

[Emille]

qantas is great

i still remember boarding the qantas flight from joburg in 2008 - and hearing the 'welcome on board' at the door in australian accent- will never forget that relieve 'that I am safe now and my future is here'

[Dan Tanne]

I must say that I have had great service on Qantas AND on SAA.

And I have had BAD service on Qantas AND on SAA.

I flew to LA on Qantas and the entertainment system did not work, so it does happen. They were very kind enough to give me a bottle of champagne as compensation, which was confiscated by security in LA before boarding my flight to NYC.

As for SAA, I flew with them when I went to SA for the world cup, and it was fantastic. So all airlines have their good and their bad.

Having said all that, I will still fly Qantas whenever possible,because their frequent flyer loyalty programme is superb.

[DanieR]

Must admit we have flown with SAA four times during our five years living in Australia and all the flights were great! Maybe the Amarula on ice give them an unfair advantage! It will be great if direct flights to Cape Town could be introduced (maybe Virgin)?

[MrsMupersan]

Danie, there are flights on Singapore Airlines which fly into Cape Town via Singapore. I'm assuming you're trying to avoid ORT. I can definitely vouch for Singapore - they are absolutely amazing! And if you have a longish layover in Singapore, make sure you take a tour from the airport!

[DanieR]

Thanks Mrs Mupersan and I agree Singapore is a good option. Will just be so good if there could be direct Australia Cape Town connections!