Airlines' tangled alliances evolve: British Airways-Cathay Pacific codeshare to Australia - for now

Implications continue to emerge from the Sep-2012 landmark Emirates-Qantas alliance, the latest development being a codeshare covering Australia for British Airways and Cathay Pacific. Although the two are members of the oneworld alliance and at first blush may be considered partners, they had the most minimal of ties, owing to significant competition between them.

That competitive situation still exists but other factors have changed: BA's once deep partner Qantas is now a competitor, aligned with Emirates, and is establishing a Jetstar franchise on Cathay's home turf in Hong Kong. BA and Cathay are united by a common enemy - not the first occasion this reasoning has spawned an alliance - but also other factors. BA has lost its Australian network access and Cathay fits in; meanwhile Cathay will be receptive to feed to sustain its positioning after China Southern and Singapore Airlines have made large capacity increases in Australia.

Alliances are evolving, and this partnership will surely change - or go extinct - as BA becomes more familiar with new oneworld members Malaysia Airlines and Qatar Airways, with whom it will have more in common than it does with Cathay.