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South African Airways long-haul partnerships: Hong Kong JV and re-examining Qantas opportunities

Analysis

Partnerships have been an important part of South African Airways' long-haul restructuring and will continue to shape changes as SAA seeks to bring its long-haul network to profitability. A joint venture with Cathay Pacific covering the Hong Kong-Johannesburg route is the likely next step.

A strategic solution for Hong Kong has been outstanding since SAA cancelled its Beijing service and dropped Mumbai as part of a partnership with Etihad Airways. In addition to its new Etihad partnership, SAA is looking to grow its pre-existing partnership with Emirates but denies reports Emirates was going to buy a stake in SAA.

SAA also wants better access to Sydney, and has considered various options to place its metal in Australia's largest city but would prefer to find a partnership with Qantas that regulators will approve. Expected regulatory rejection prompted Qantas to end a 14-year codeshare with SAA in early 2014.

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