Possible New Airline before Xmas !!!
This article has appeared in the Singaporean newspaper 'The Business Times' and also in the Sydney newspaper ' The Sunday Telegraph' Page 7
July 21, 2002
SIA preparing to enter Aussie domestic market: report
SYDNEY - A Singapore Airlines-backed consortium is preparing to enter the lucrative but failure-strewn Australian domestic aviation market, a Sydney newspaper reported today.
The Sunday Telegraph said Singapore Airlines (SIA) would underwrite the new airline, which aims to be flying by Christmas.
The move would challenge Qantas, which now has about 80 per cent of the domestic market following the collapse of Ansett last year, and Virgin Blue, the successful discount carrier launched by British tycoon Sir Richard Branson in 2000.
Since the collapse of Air New Zealand-owned Ansett, the Star Alliance group of airlines, including SIA, has lacked a presence in the Australian domestic market, denting its tourist numbers.
A spokesman for SIA told the newspaper the company was "keeping its domestic options open" and was not ruling out any proposals.
The newspaper quoted an industry source as saying plans for the safety certificate needed to operate in Australian skies was well advanced.
"These guys have their paperwork ready to go, they can be in the air by Christmas," he said.
The new airline, which is yet to be named, would initially fly new Boeing and Airbus jets on the Sydney-Melbourne, Sydney-Brisbane routes, with some additional Canberra services.
Later expansion plans include Perth and Adelaide, the newspaper reported.
A vital consideration is understood to be the old Ansett terminal in Sydney airport, with SIA worried it will be frozen out if Qantas and Virgin Blue occupy the bulk of the facility.
"We are sending a strong signal that while we might be able to get the planes and the passengers, you've got to have somewhere to park your planes," the SIA spokesman said.