The International Air Services Commission (IASC) has extended a code-share alliance between Qantas Airways and South African Airways for flights between Sydney and Johannesburg for a period of 2 years.

Qantas Airways has been seeking a permission to extend the alliance for a period of four years until March 2016, but the IASC approved the extension only for two years, stating that it does not beelive the alliance will benefit customers beyond December 2014.

The IASC said that, “While the Commission's finding on competition is finely balanced, the Commission considers that they are likely to be marginal public benefits gained from approving the code share until the end of 2014. After 2014, the Commission considers there is a greater prospect of either entry and/or more competition between the incumbent airlines in the absence of the code share.”

Qantas and South African Airways have been partnering for services between Australia and South Africa since the December of 2000. South African Airways offers services between Perth and Johannesburg while Qantas Airways operates flights between Sydney and Johannesburg.

There are only two companies offering direct flights between the two counties and they are required to operate a combined 13 services a week between Australia and South Africa.