Cathay Pacific -Malaysian revenue sharing deal abandoned

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  • cwoodward

    The two airlines proposed a revenue sharing deal on revenue and costs for their Hong Kong-Kuala Lumpur and Hong Kong-Penang routes, as well as coordinate pricing and flights for various other indirect services it seems was pulled by Cathay after fearing refusal for an exemption from Malaysia’s competition laws.
    It also seems that Hong Kong’s regulator HKCC had also started investigations on suspicions that such a deal would be against Hong Kong’s competition law.

    Its reported that Cathay pulled the proposed deal fearing more potential problems than advantages
    ( Have time to post today as we have a black rainstorm here which has closed down HK and kept me at home.
    -airport is still functioning)


    wouldn’t that amount to a cartel?


    I believe that it does Steve.
    However this arrangement exists between Air New Zealand and Cathay Pacific to/from NZ and has done for at least 12 years and being renewed every about every 3 years However ANZ has no local long haul competitor ex NZ and so there is some difference

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