Australia's air services regulator, International Air Services Commission (IASC), has rejected a bid by Australia's Qantas Airways and South African Airways (SAA) to continue their code-sharing alliance on flights between the two countries beyond 31 Dec 2012. According to the commission, the two airlines operate a "duopoly" on the direct services between Australia and South Africa. In its decision the IASC said that in determining whether to renew the approval for the codeshare, it had to consider whether it was likely to give rise to public benefits and in particular competition benefits going forward, compared with a future without the codeshare.
South African Airways currently flies from Perth to Johannesburg, while Qantas Airways operates from Sydney to Johannesburg. Under their code-sharing alliance, both carriers are required to operate a minimum of 10 services a week between Australia and South Africa.
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