QANTAS AND JAPAN Air Lines (JAL) have negotiated a memorandum of understanding on a codesharing deal which will allow both carriers to rationalise services on tourism routes between Tokyo, Cairns and Brisbane, following a flattening of the Japanese market.
Under the arrangement, Qantas will operate direct Boeing 747 services between Tokyo and Cairns, with JAL flying direct to Brisbane; rather than both carriers flying the composite route to both cities. The two carriers will nominate one another as their preferred carrier in their respective domestic markets.
The deal sets the scene for similar Qantas code shares on other Asian routes. Although the Japan route remains profitable, revenue last financial year dropped by 6.9% (A$55 million) to $742.1 million; whereas Qantas chairman Gary Pemberton says that other South East Asian routes lost money in 1995-6. South East Asian routes served by Qantas, include Indonesia, Malaysia, Singapore, Thailand and Vietnam.
Source: Flight International