Dow Jones
Thursday September 18, 2:34 pm AEST
Australian Govt: Qantas Can Cope With More Open Skies
CANBERRA (Dow Jones)--The Australian government said Thursday that Qantas Airways Ltd. is robust enough to withstand a more liberal air services arrangement between Canberra and Singapore.
"Handled carefully, phased in, done at a sensible sort of rate, the answer to that is yes," Deputy Prime Minister and Transport Minister John Anderson told reporters.
Anderson is due to visit Singapore next week to negotiate a more open air services deal with Australia's new free trade agreement partner.
He said the government will balance consumer benefits with ensuring a strong domestic aviation sector.
"We handle these things sensitively, with caution," said Anderson.
"But we are committed, probably more than any other country in the world...to reform of the skies, to more liberalized aviation arrangements," he added.
Singapore Airlines Ltd. is reportedly keen to use the east coast of Australia as a base for flights to Los Angeles.
But Qantas chief executive Geoff Dixon, keen to protect what is a lucrative route for the carrier, has said he is opposed to Singapore Airlines flying between Australia and the U.S.
Dixon warned Wednesday that while liberalizing market access is continuing to drive competition, "it must be recognized that the playing field in these markets is far from level, for many reasons including government support to carriers."
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