The Australian
SingAir loses US flight
June 15, 2005
SINGAPORE Airlines (SIA) said today it would not give up the fight to fly the Australia-US route after the Federal Government denied the carrier access, protecting Qantas' lucrative market.
Australian Transport Minister John Anderson's office said today SIA has been denied access to the lucrative route and that the Singapore government was told of the decision last week.
"The issue of trans-Pacific access has been considered at the highest levels by the Australian government and it has decided that the time is not right for Singapore Airlines to be granted access to the route," a spokesman for Mr Anderson told AFP.
Qantas, which makes about 15 per cent of its profits from the Australia-Los Angeles route, has in the past expressed opposition to allowing SIA access to the route.
The Australian carrier controls about 75 per cent of direct flights and United Airlines has the remaining 25 per cent.
The Singapore carrier was disappointed with the decision but said it did not come as a surprise since Canberra had delayed making a decision on the matter in the past.
"We restate our view that the delay is a disappointment, but not surprising, given that the decision has been deferred several times previously," an SIA spokesman said.
"Singapore Airlines is seeking the ability to compete beyond Australia in the same way that Qantas now competes beyond Singapore.
"We ask for a level playing field; for consumers to be given the opportunity to make choices between the USA and Australia."
He said Singapore Airlines, which has been lobbying for access to the route for three years, had not been given an indication about when the issue might be reconsidered.
SIA vowed to continue pushing for access which is currently dominated by Australian flag carrier Qantas.
"The interests of all involved are best served by making a decision to open one of the world’s most protected air routes to competition," the SIA spokesman said.
"In the meantime, Singapore Airlines will continue to press its case with the Australian government ... by highlighting the benefits of competition, and why protection of Qantas from competition comes at significant cost to the travelling public and the tourism industry."
SIA recently released details of a report it sent to Canberra which claimed that giving the airline access to the Australia-US route would generate an extra $126 million dollars a year from US tourism spending in Australia.
The report also said fares would drop and growth in demand for travel to Australia from the United States would grow by four to eight percent.
The Australian Government decision looks to be final for the time being although the Singaporean Transport Minister is shortly being sent cap in hand to Canberra to attempt a retrieval of the situation – I’d guess that he will be unsuccessful.
From memory, SIA ordered the B777-300ER’s either at the same time or shortly after starting the lobby process for the Aus-US routes, three years ago, so jstars2’s speculation may have some basis in fact.
As for pilots being "volunteered" over to SIA Cargo, the airline has a track record for doing exactly what it damned well likes – Take the case of ex-Silk Air A320 rated pilots who moved to SIA on the B777 fleet and were subsequently "volunteered" to Tiger Airways as a stop gap to cover the dearth of suitable recruits to Tiger due the poor package on offer.
The Alpa-S response to a similar future gambit? – “Your humble citizens await your instructions”.