The International Air Services Commission (IASC) ruled on Thursday that Qantas Airways Ltd could retain its code-sharing agreements with South African Airways for another 12 months on service routes between Australia and South Africa.

An initial draft was already issued on the two airlines' arrangements but a review was decided by IASC following Virgin Blue Holdings Ltd's announcement that its V Australia subsidiary would scrap the Melbourne-Johannesburg service flight in February 2011.

On its new order, the air service commission required both Qantas and SA Airways to increase their minimum number of flights to 14 as it added that the South Africa-Australia service route would "likely to be less competitive than would have been the case if V Australia had continued flying."

IASC admitted that once V Australia exits the Melbourne-Johannesburg route, the travelling public would definitely feel the disadvantages of reduce number of flights in the destinations but it asserted that Virgin's pulling out from the operations was not "a sufficient basis for denying continued code share approval."

The commission noted that Qantas has been in a code-sharing deal with the South African carrier since December 200 and the Australian airline merely applied for another two-year extension of the prior arrangement, as it reminded parties concerned that they can still file submissions on the second draft ruling until September 23.