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International Air Services Commission rejects extension of Qantas-SAA tie-up beyond 2012

 |  March 2, 2012

The International Air Services Commission has rejected Qantas’ request to extend its alliance with South Africa Airways Aviation on the Australia-Johannesburg route. The code-share deal is set to expire at the end of this year, in consideration of the disruption to airlines if it were to end sooner. The Commission described the arrangement as an “effective duopoly,” and that competition for flights between Australia and South Africa is limited, especially given the exit of V Australia. It also pointed to the South African Competition Commission’s reservations about extending the alliance beyond 2012.


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