China Southern deal to fill 'gaping hole' in Qantas network Qantas and China Southern Airlines have struck a codeshare deal which will give their passengers access to a range of new destinations in China, Australia and New Zealand. QANTAS has forged a code share deal with Asian giant China Southern in an attempt to crack the booming Chinese tourist market. The move came as Tony Abbott indicated he would not stand in the way of further foreign ownership of the national carrier, which has been pushing for a loosening of rules which say it must be 51 per cent Australian owned. Qantas has argued this hampers access to investment capital and creates competition restraints. Asked whether he would consider easing the foreign ownership requirement on Qantas, the Prime Minister said: "That's a fair question." I don't think anyone says that because something was done once it is set in concrete forever," Mr Abbott said. Meawhile, analysts said the China Southern deal would fill a "gaping hole" in Qantas' route network and drive Chinese tourism to Australia. Under the deal, Qantas customers will be able to book on China Southern services from Sydney, Melbourne, Brisbane and Perth to Guangzhou as well as four onward destinations within China - Xiamen, Kunming, Fuzhou and Urumqi. China Southern customers will be able to book on 10 different Qantas routes within Australia and to New Zealand, including Cairns, Adelaide and Canberra. Australian Business Traveller editor David Flynn said Qantas' tie-up with Asia's largest airline would help the carrier to address an area of weakness. "Asia has been a gaping hole in Qantas' network for some time, particularly China," he said. Mr Flynn said Australians wanting to visit the booming business and manufacturing centres of southern China would particularly benefit from the arrangement, as Qantas' existing Chinese services all pass through Shanghai or Hong Kong. China Southern makes sense as a partner because they have their hub in Guangzhou, which is particularly a business and manufacturing hub for southern China. China Southern Airlines has been aggressively building its Australian presence in recent years, and in late October began a new Airbus A380 service between Guangzhou and Sydney. China Southern Airlines chairman Si Xianmin said the agreement would help Chinese tourists see more of Australia. "We welcome this move because it will give our passengers greater access to Australia and will also open up Australian tourism to a leisure and business market that is growing by nearly 20 per cent a year," he said. Qantas chief executive Alan Joyce said the deal, which requires regulatory approval, fitted with his airline's strategy to build alliances into Asia. "Qantas is now in a unique position of having commercial relationships with the three biggest carriers in Greater China," he said. The two airlines have also agreed to investigate other areas of potential cooperation, including pilot training assistance from Qantas and cargo opportunities.