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Old 3rd Jun 2002, 05:34
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nickmelb
 
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FYI from www.travelbiz.com.au

The Star Alliance has flagged plans to start a third domestic airline in Australia operated by Singapore Airlines or Air New Zealand.

It is expected the new entrant would initially service congested east coast routes, filling the vacuum left by the demise of Ansett.

The federal government has reportedly welcomed the possibility of a third carrier entering the domestic market with federal transport minister John Anderson “quite confident” that the number of players will grow.

SQ ceo Cheong Choong Kong told the Sydney Morning Herald that the airline was “working on solutions to compensate” for the collapse of Ansett.

At the same time, Air NZ ceo Ralph Norris said the move was an option for the airline, as it would help feed domestic traffic to its Star Alliance partners, but no decisions had yet been made.

According to the Sydney Morning Herald, Air NZ would face few barriers if it did launch an Australian domestic service.

3 June 2002

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