canton route vs kangaroo route, page-15

Cathay and Qantas together could marginalise airlines such as Singapore and Malaysian, for through traffic, by controlling North Asia and South Asia. Together they would be an Asian powerhouse, apart they are both good businesses.

Qantas have a lot of prime landing slots that could be used more effeciently by a combined entity. Take a look at British Airways being lent prime landing slots into London Heathrow. San Francisco is another example of wasted landing slots. Qantas have rights to 5 landing slots into Paris, but can't make it work due to the lack of frequency, but if you had the option of using them as a combied entity, you could fly up through Singapore and back through Hong Kong.

The synergies are there for both to reap the rewards.