Shortly, this is not the first time you have burst into print in an ill-informed way.
As you may now be aware, the application to postpone the ATLA hearing was put forward by BOTH CX & KA. Therefore, this is not a matter of KA wanting to air it's gripe in private as you wrongly assert.
You might also be interested to note that the issue of PRC-SAR flight allocations is apparently a matter for the Central Government to determine in accordance with the Basic Law. Articles 131 and 132 of the Basic Law document to be precise - which state in part, "The Central People's Government shall, in consultation with the SAR Government, make arrangements providing air services between the region and other parts of the PRC for airlines incorporated in the SAR."
We are therefore going to see this issue become increasingly political - with CNAC (including Air China now) and the PRC probably wanting a different outcome to that desired by CX and Swires. (CITIC will sit on the fence in order to be on the winning side.) Therefore, I suspect, CX realised that the codeshare arrangement offered was a spectacularly good deal (given the alternative of getting a flat rejection either by ATLA at this end or CAAC at the other end) and readily agreed to it. Thus the gloomy faces present when Justice Stone threw the cat amongst the pigeons. Dragonair (under pressure from CITIC not to fight with CX) probably offered the codeshare as a face saving alternative.
The point however is one that I made some time ago. The days when CX/Swire held political sway here are over. Today, Dragonair is likely to be more powerful because of the links with mainland political heavy's (CNAC & Air China). And, just as CX/Swire used political connections to beautiful effect in the past, we must expect that CNAC/Dragonair will do the same in modern times. This cannot be good news for Cathay Pacific's monopolistic domination of Hong Kong aviation. But, c'est la vie!
Remember, even if ATLA gives CX a licence to fly to PRC ports, the mainland Government can (and I suggest will) still deny them access.
Move over Cathay - Dragonair is coming through...