Virgin fights code- share
VIRGIN Australia says there is “no justification” for Qantas to code- share its routes from Australia to Port Moresby with Air Niugini.
Qantas wants to continue to code- share on Air Niugini services between Sydney and Port Moresby and Brisbane and Port Moresby, and add its code to Air Niugini services between Port Moresby and Townsville and Port Moresby and Cairns.
In a submission to Australia’s International Air Services Commission, Virgin Australia wrote if the code- sharing application was granted it could prevent another carrier entering the market.
“For the markets between each of Cairns, Sydney and Townsville and Port Moresby, Virgin Australia urges the commission to exercise caution in assessing the variations requested by Qantas, given that the likely effect of such code share services would be to foreclose these markets from entry by another carrier in the future,” the submission reads.
“If the commission is inclined to grant approval for Qantas and Air Niugini to code share on these markets, it may be appropriate to impose conditions to ensure that there is a level of competition between the carriers.”
Qantas already code- shares with Air Niugini between the Sydney- Port Moresby and Brisbane- Port Moresby routes.
However, there is no code- sharing between Papua New Guinea’s capital and Townsville or Cairns.
“If the commission was to endorse the expansion of codeshare services to include the Cairns and Townsville markets, this would enable Qantas and Air Niugini to hold out for sale 83 per cent of all seats on flights between Australia and PNG,” their submission reads.
Despite Virgin’s objections to Qantas’ proposal, Townsville Airport, Townsville City Council and Townsville Enter- prise all wrote to the commission expressing their support for the plan.
Council chief executive Adele Young said in the council submission that an expansion of the code- share agreement would increase the viability of the service and ensure its longterm sustainability.
“The route between Townsville and Port Moresby will always remain a low volume route that will only support one carrier,” she wrote. “Putting a code share on it will not result in an anti- competitive situation. Instead, I believe approval of the proposed code share is highly desirable and will maximise consumer choice.”
TEL chief executive Patricia O’Callaghan wrote the direct air route between Townsville and PNG was an important catalyst to strengthening the relationship and a code- share arrangement between Qantas and Air Niugini would support the long- term sustainability of the route.