Read the above Sunday paper version Airtart.
A number of factors are going to play heavily into this.
Firstly Singapore Airlines backed.
This company although on the improve financially has made some woeful investments of late,Air New Zealand costing them a mint and their 49% of Virgin Atlantic which although now profitable has cost them alot more money than they anticipated.
Each of the above has left Dr Cheong with egg on his face.
The collapse of Ansett and re-nationalisation of Air NZ left him with a severe loss of face also.
His job and every move is under heavy scrutinsation - just read the Asia Wall St Journal if you get the chance.
This start up operation will be a very expensive venture if only to fill a minor gap in the Start Alliance network.Worth it I ask you say?
Terminal access will be interesting and I know for a fact that Chris Corrigan and the
VB team along with Geoff Dixon at Qantas will be both united in lobbying strongly against these guys.
My money is with the incumbents and if this new mob is to get access to the old Golden wing lounge the new owners of Sydney Airport will make sure they pay a pretty penny for the priviledge.
Combine this with the fact that alot of Australians have been severly soured by the loss of their Frequent Flyer Points and will think twice in the future about spending money with these guys doesnt bode well.
I hardly expect this supposed start up operator to start a non sustainable air fare war either.
Experience has taught them the consequences.