Tues "Australian Financial Review" 11:05 AEDT
Qantas hits back
Qantas yesterday hit back at a call by Singapore Airlines for access to the lucrative Australia-North America route, saying such a move would give the Asian airline an unfair advantage in the region. Qantas chief financial officer Peter Gregg said Singapore Airlines already enjoyed considerable access to the Australian aviation market, which he described as one of the most liberal in the world. Mr Gregg's comments came after Singapore Airlines CEO Chew Choon Seng told The Australian Financial Review that it was time the federal government opened up the United States route since the global aviation industry had recovered from the combined shocks of the September 11, 2001, terrorist attacks in the US and the severe acute respiratory syndrome epidemic. Qantas was 3¢ higher at $3.72.
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news.com.au 15:05 AEDT
Australia to discuss US route
January 11, 2005
TRANSPORT ministers from Australia and Singapore will meet next month to discuss opening routes from Australia to the US to Singapore Airlines, a move hotly contested by Qantas, a government spokesman said today.
A spokesman for Transport Minister John Anderson said the talks with his Singapore counterpart Yeo Cheow Tong would take place in mid-February in Canberra and had been called at Singapore's request.
The meeting comes amid talk of cut-throat competition between the two carriers after Qantas set up a low-cost Asian airline based in Singapore, Jetstar Asia, putting it in direct competition with the Singapore flag carrier in its home market.
Flights between Australia and the US are currently restricted to airlines from the two countries concerned and are among Qantas' most profitable routes.
The spokesman said the government was happy to talk to the Singaporeans about the issue and had some points of its own it wished to raise.
"The government will make its mind up after that and won't be pressured into making a decision," the spokesman said.
Australia would also be raising issues about limited access to the European market out of Singapore, he said.
Qantas has argued that it needs protection amid the turbulent world airline market after the attacks of September 11, 2001 but Singapore Airlines argues that the airline's soaring profits suggest otherwise.
The Australian flag carrier reported a record net profit of $648.4 million for the year to June 2004.
Qantas has said giving Singapore Airlines access to the Australia-US routes would effectively put it at a competitive advantage.
"Qantas could still not compete with Singapore Airlines on the majority of Singapore Airlines' routes between Singapore and the US due to restrictions in Australia's bilateral agreements with third countries," said Peter Gregg, the airline's chief financial officer.
Singapore Airlines also had the option to establish a wholly-owned Australian-based airline if it wished, he said, noting that fuel prices remain at record highs and the global aviation industry subject to many external shocks.
"Qantas is not protected and does not seek protection," Gregg said.
Agence France-Presse
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Last edited by Wirraway; 11th January 2005 at 03:43.