Wed "Sydney Morning Herald"
Qantas dips on new entrant talk
September 4 2002
Singapore is tipped as wanting to take on the Flying Kangaroo - if it can find a mate, writes Mark Todd.
Rumours that a new entrant had secured terminal space at Sydney Airport as a precursor to launching a domestic service were back again yesterday. Predictably, Qantas shares were sold off on fears of what a third operator would do to the cosy duopoly the airline shares with Virgin Blue.
It's hard to see anything happening soon. Singapore Air, the most likely to set up in Australia, has a board meeting later this month. The matter will get an airing then.
But Singapore Air isn't anxious to start a business here on its Pat Malone after burning a pile of cash in Ansett. It is thought the Asian carrier is trying to sound out the views of other potential investors.
There are signs that competition is already on the rise in Asia, with Cathay Pacific last week announcing it would add flights to Melbourne and Brisbane. And Qantas has applied to boost capacity to Hong Kong.
This will pretty well lock up the Hong Kong route.
Shares in Qantas eased 12c to $4.15.