Sad luck, Sunfish!!!
AUSTRALIA'S new aviation policy is set to reject Singapore Airlines' bid to fly Qantas's most lucrative route, from Sydney to Los Angeles.
The policy, which is expected to be considered by federal cabinet tomorrow, could deeply divide ministers and backbenchers.
Although Singapore Airlines is poised to miss out on the Sydney to Los Angeles route, Qantas is expected to face more competition from other airlines, including budget carrier Virgin Blue.
This could lead to lower prices for air travellers on popular domestic routes and possibly some international ones.
One option being considered is to relax the rules limiting foreign ownership in the carrier to 49 per cent to allow a merger with another airline.
The Prime Minister, John Howard, believes Qantas and Singapore Airlines should one day merge into a giant new airline.
The Government is divided over the policy. A number of backbenchers are worried about the impact on Qantas of allowing Singapore Airlines to fly between Sydney and Los Angeles.
Government backbenchers Bruce Baird and Warren Entsch have lobbied Mr Howard on aviation policy changes, arguing that jobs at Qantas as well as routes in rural areas would be lost if the carrier was put under intense competitive pressure.
Backbenchers also argue that Qantas is not competing on a level playing field because Singapore Airlines enjoys lower tax rates than Qantas.
But other Coalition backbenchers, including West Australians Geoff Prosser and Michael Keenan, have pushed for Qantas to face greater competition on the Sydney to Los Angeles route as well as within Australia, arguing that it would lower air fares for Australians.
Mr Baird has argued that many of Qantas's 38,000 jobs could move to Singapore if the island's airline was allowed to operate the Australia-US west coast route.
But the Minister for Small Business and Tourism, Fran Bailey, believes Australian tourism would be boosted if there were more airlines flying between Australia and the US
All of a sudden the gov't is worried about jobs in aviation??? WTF???
What about Ansett?
What about LAMEs' work being farmed off to the Chinese?
And as if they really care if the ugg-boot crowd can get a cheaper air-fare. But then as if I do either.....
