Wirraway
28th Jan 2004, 04:37
Tues "The Guardian" London
Virgin's new service faces delay
Andrew Clark
Tuesday January 27, 2004
The Guardian
Virgin Atlantic's new service to Australia could be delayed until the end of the year because of strong protests to the European Commission by rival airlines,
it emerged yesterday.
The airline secured long awaited government permission in November to serve Sydney via Hong Kong from this summer, in a move which will challenge British Airways' and Qantas' dominance on the profitable long-haul route.
Under the deal, the Department of Transport agreed with the Hong Kong government to allow Cathay Pacific to fly from Heathrow to New York - a concession which has provoked fury from fellow carriers.
Cathay's general manager for international affairs, Andrew Pyne, told reporters yesterday that the EC was unlikely to clear the deal for many months. "We hope the agreement comes through [the process] unscathed but it is under attack from some quarters," said Mr Pyne. "This will mean a significant delay and it could be toward the end of 2004."
A hold-up will be a setback to Virgin Atlantic, which had predicted that it would be able to link services with its antipodean partner, Virgin Blue, by the summer. The so-called "kangaroo route" is among the most profitable in the world. Virgin eventually wants to fly it with an Airbus A380 superjumbo, carrying 550 passengers in each direction every day.
Among the objectors are Singapore Airlines, which owns a 49% stake in Virgin, and BMI British Midland. Both have been lobbying unsuccessfully for permission to fly transatlantic routes from Heathrow - a right restricted to a handful of carriers.
A Virgin spokesman yesterday insisted that the airline remained confident of winning permission from transport commissioner Loyola de Palacio "this summer".
He said: "There's absolutely no reason why the commission shouldn't approve it relatively quickly. It's a pro-competition deal. It gives passengers more choice in flying from London to the US and from London to Sydney."
Singapore Airlines and BMI say it is unjust for Cathay to get a competitive advantage in routes from Heathrow, where landing rights are restricted because of a shortage of landing slots.
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Virgin's new service faces delay
Andrew Clark
Tuesday January 27, 2004
The Guardian
Virgin Atlantic's new service to Australia could be delayed until the end of the year because of strong protests to the European Commission by rival airlines,
it emerged yesterday.
The airline secured long awaited government permission in November to serve Sydney via Hong Kong from this summer, in a move which will challenge British Airways' and Qantas' dominance on the profitable long-haul route.
Under the deal, the Department of Transport agreed with the Hong Kong government to allow Cathay Pacific to fly from Heathrow to New York - a concession which has provoked fury from fellow carriers.
Cathay's general manager for international affairs, Andrew Pyne, told reporters yesterday that the EC was unlikely to clear the deal for many months. "We hope the agreement comes through [the process] unscathed but it is under attack from some quarters," said Mr Pyne. "This will mean a significant delay and it could be toward the end of 2004."
A hold-up will be a setback to Virgin Atlantic, which had predicted that it would be able to link services with its antipodean partner, Virgin Blue, by the summer. The so-called "kangaroo route" is among the most profitable in the world. Virgin eventually wants to fly it with an Airbus A380 superjumbo, carrying 550 passengers in each direction every day.
Among the objectors are Singapore Airlines, which owns a 49% stake in Virgin, and BMI British Midland. Both have been lobbying unsuccessfully for permission to fly transatlantic routes from Heathrow - a right restricted to a handful of carriers.
A Virgin spokesman yesterday insisted that the airline remained confident of winning permission from transport commissioner Loyola de Palacio "this summer".
He said: "There's absolutely no reason why the commission shouldn't approve it relatively quickly. It's a pro-competition deal. It gives passengers more choice in flying from London to the US and from London to Sydney."
Singapore Airlines and BMI say it is unjust for Cathay to get a competitive advantage in routes from Heathrow, where landing rights are restricted because of a shortage of landing slots.
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