Air Canada to fly LA-Sydney

[Wirraway]

Fri "Sydney Morning Herald"

Air Canada to fly LA-Sydney By Scott Rochfort
January 27, 2006

SINGAPORE Airlines has been gazumped in its bid to become the next airline to enter the lucrative Australia to US route after Air Canada announced it would start services between Sydney to Los Angeles and Toronto next year.

The move could take pressure off the Federal Government to allow additional competition - namely Singapore Airlines - on the capacity-constrained route that accounts for 20 per cent of Qantas's profits.

Singapore Airlines has been lobbying to get on the route for 10 years. There has been speculation the Federal cabinet could allow the Asian airline to fly limited flights on the route when it completes an aviation policy review in March.

At this stage, it is unknown whether this could change with Air Canada entering the route. Singapore Airlines, meanwhile, has vowed to push ahead with plans to enter the route.

"We have never argued that we should be the only additional airline to fly the trans-Pacific," said Kate Pratley, a Singapore Airlines spokeswoman.

"In this case, Air Canada has obviously made a business decision and it confirms there is a complete lack of competition on the trans-Pacific route," she said.

Air Canada has announced plans to launch a daily service on the route with its new fleet of long-range Boeing 777s.

"We believe it's time to get in there and compete," said the airline's Australian general manager, Jeannie Foster. Air Canada said a recent open skies treaty signed between the US and Canada would allow it to fly the previously barred route.

The announcement comes two days after the federal Tourism Minister, Fran Bailey, met Air Canada officials and opened a Tourism Australia office in Toronto.

The number of Canadians visiting Australia is growing at 7 per cent a year and recently topped 100,000 a year.

However, it is likely Air Canada will also be eyeing the heavy demand for business traffic between Sydney and Los Angeles. Like Singapore Airlines and Qantas's only competitor on the LA route, United Airways, Air Canada is a member of the Star Alliance.

The airline said it also saw "attractive opportunities … to work with its Star Alliance partners Air New Zealand, United Airlines and US Airways".

In a bid to boost its appeal to higher-yielding corporate passengers, Air Canada will also introduce business class beds later this year.

Ms Foster said the new Air Canada flights would cut the flight time from Sydney to Toronto from 25 to 21 hours. She said this would appeal to many business passengers flying to eastern Canadian cities such as Montreal and Ottawa. "We think we can get you to Canada a whole lot quicker," she said.

At the moment Air Canada flies a daily service between Sydney to Vancouver via Honolulu. Ms Foster hinted the airline could start a direct service between Sydney and Vancouver with its new 777s next year.

Qantas was unavailable for comment.

Singapore Airlines has argued its inability to fly the the Sydney-LA route is costing Australia $126 million in lost tourist revenue.

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[rescue 1]

Air Canada said a recent open skies treaty signed between the US and Canada would allow it to fly the previously barred route.

Ok...I'm dumb. How does this signing allow Canada to fly this route?

Not against the competition at least as they are a Star partner SQ can codeshare...wait maybe that's the answer???

[belowMDA]

I think you will find that it has something to do with 5th freedom rights. Well something along those lines, allowing one nations carrier to fly between two different countries ie. Air Canada between Australia and the USA

[Jerricho]

And thank christ they're gonna be using 777s. All that way on one of their clapped out 767s? No thank you.

[MarkD]

YYZ-LAX-SYD is a good start but add YYZ-MEL and it gets even better (lots of Greeks at both ends) :ok:

[Animalclub]

Maybe Canada has a deal with the US but has the Australian Government OK'd the flight between AUS and US.

I know it would be pretty stupid to announce this without the OK, but stranger things have happened.

[Cool banana]

Don't Air Canada have a handful of A340-500 would be better than getting ETOP approval for B777??

[Wirraway]

Sat "Sydney Morning Herald"

Air Canada might keep SingAir off LA route
By Scott Rochfort
January 28, 2006

OPPOSITION is hardening within Federal Government ranks on allowing Singapore Air access to the trans-Pacific route after Air Canada announced this week it would begin flights between Los Angeles and Sydney early next year.

It will join Qantas and United in flying between the cities non-stop. The route accounts for as much as 20 per cent of Qantas's profits.

"It certainly diminishes the argument Singapore has for the need for more competition," Liberal backbencher and Qantas supporter Bruce Baird said. "From my point of view they [Air Canada] have more claim to fly across the Pacific than Singapore Airlines because they will be flying Canadians back home."

There is further speculation another US carrier may enter the capacity-starved route amid early signs of a recovery in the North American aviation market.

According to some reports, Singapore Air had already lost the support of some politicians. A federal cabinet aviation policy review due to be released in March is expected to heavily restrict Singapore Air's access on the LA route. There are suggestions Singapore Air might be allowed to operate a paltry three weekly services from Sydney to LA while being restricted from using its giant A380s on the route.

The Coalition's leader in the Senate, Nick Minchin, previously cited as a supporter of opening up the route, is now said to be against Singapore flying on it.

The Prime Minister, John Howard, has voiced caution over allowing Singapore Air on the route. And there is speculation National Party Leader Mark Vaile and the Liberal Party's Senator Ian Campbell have softened their pro-competition stance.

Qantas is expected to argue that with Singapore Air's entry to the route, it would be competing with three Star Alliance airlines.

The managing director of the Asia Pacific Centre for Aviation, Peter Harbison, said the Air Canada announcement could damage Singapore Air's ability to gain access to the Sydney to Los Angeles route.

"It's certainly going to have an effect on that whole process," he said.

However, some Coalition MPs, including Tourism Minister Fran Bailey, want more competition.

"For too long, the North American market has failed to meet expectations," Senator Bailey said in a statement. "We need to grow this tourism market to create more jobs in Australia."

WA backbencher Michael Keenan said the Air Canada announcement did not change his view.

"Consumers would still benefit from any increased levels of competition on that route," he said.

Investors shrugged off the prospect of Air Canada's entering Qantas's most profitable international route. Qantas shares rose 7c to $4.08.

Macquarie Equities analyst Paul Huxford said the entry of Air Canada could be "a blessing in disguise" for Qantas as Singapore Air would find it more difficult to point to a lack of competition on the route.

=================================================

[MarkD]

AC's 2 x 345s are going away when the 777s arrive - ditto the 333s and 343s. 787s to replace the 762/763 fleets.

345s currently op YYZ-DEL I think and have a rep of being cranky.

[Buster Hyman]

If they have CAN-AUS traffic rights, then thats all they need. Stopping in the USA has nothing to do with the AUS Govt. I think...

[Animalclub]

Buster... agreed they can carry pax CAN-AUS via anywhere they like, but in this case can they pick up in any other country to carry pax to AUS? I don't think so without the Australian Government approval.

[MIss Behaviour]

The airline (Air Canada) said it also saw "attractive opportunities … to work with its Star Alliance partners Air New Zealand, United Airlines and US Airways".
No mention of a certain other Star Alliance carrier Singapore Airlines??? I may just be a tad pessimistic here but it sounds like a case of guilty by omission.
So Plan A didn't work for SQ ie flying in their own right SYD-LAX so what's plan B? Buy Air Canada then get the lucrative route by default, after all AC would surely be cheaper to buy than QF?
I'm sure Temasek Holdings aka SIN Govt/SQ has heard of the adage of more than one way to skin a cat (sorry Tipsy). :ooh: :ooh:

[Don Esson]

If they have CAN-AUS traffic rights, then thats all they need. Stopping in the USA has nothing to do with the AUS Govt. I think...

Buster ole chap....it has everything to do with the Yanks, Aussies and Canadians. I have just tried to sucessfully booked Air Canada from PHNL/YSSY. If the same logic applies, they will be able to carry traffic KLAX/YSSY. The wquestion is however, do they want to carry traffic Australia/USA or Australia/Canada? Like SIA, it will be the former rather than the latter as there's prolly umpteen times the traffic to/from KLAX then maybe CYYZ. After all, a few years ago the rat attempted an operation TO CYYZ and failed. Betcha AC will "cherry pick" just like any other 6th freedom interloper.:hmm: :hmm:

[Tom Sawyer]

Bearing in mind that AC already stop in Hawaii on the way, which is a US state, do they just tech stop there, or pickup pax. If they do a pickup / dropoff (ie have 5th freedoms) there what is to stop them just changing the port to LAX?

[Don Esson]

Tommy - they exercise traffic rights ex PHNL. I think we mighta posted simoltaneously!!

[newsreader]

Qantas to begin services to Canada
Latest News
Sydney, 21 November 2005
Qantas will begin operating seasonal services between Australia and Vancouver from 14 June to 13 August 2006.
The Executive General Manager of Qantas, Mr John Borghetti, said the new service would boost tourism in both Canada and Australia.
"These services will operate during the traditional peak travel season in both hemispheres, and will be first step towards establishing year-round Qantas flights to Canada."
Qantas will offer three services per-week between Sydney and Vancouver via San Francisco, operating three-class Boeing 747-400 aircraft fitted with Qantas' award-winning Skybed in Business Class.
The services will operate from Sydney on Wednesdays, Fridays and Sundays at 1.55 pm and arrive in San Francisco at 10.15 am, then depart at 12.05 pm and arrive in Vancouver at 2.20 pm.
Same-day return services will depart Vancouver at 6.30 pm, arrive in San Francisco at 8.50 pm, and then depart at 10.40 pm to arrive in Sydney at 6.15 am two days later.
Qantas will also operate services to Vancouver for the December 2006 and January 2007 period to meet the high levels of demand associated with the North American ski season. Flights go on sale next month.
Mr Borghetti said Qantas had also added extra services between Australia and the USA between December and February to cater for peak season demand.
The airline will provide an additional weekly service between Sydney and Los Angeles for nine weeks from December 2005 until February 2006 - providing more than 6,000 additional seats between Australia and USA during the busy holiday season.
Issued by Qantas Corporate Communication (Q3356)

[Buster Hyman]

Thanks Animalclub. I think my post was a classic example of (a) Misunderstanding the question & (b) mistyping the response!!!:rolleyes:

I'll go & sit in the corner shall I?;)

[Animalclub]

Nah Buster ... you're OK... my Dad used to support Everton!! Only reason he stopped supporting them was 'cos he died!!

Cheers

[Buster Hyman]

...:(...I hear that happens to a lot of Everton supporters!:ugh:

[MarkD]

Apparently YVR-HNL-SYD is quite busy (last year they had a winter 343 as well as the usual 767) and us Hogtowners don't want to be two-stopping it :D Apparently the game plan is to leverage other central/eastern Canadian services to LAX on to the SYD run rather than introduce more direct services to HNL.

http://news.corporate.findlaw.com/prnewswire/20060125/25jan20061639.html

[Ejector]

When is Air Canada starting the route?

[Animalclub]

I know the article is 6 days old, but I'd say AC do not have permission to pick up originating pax ex LAX. (Don't go there!!)

[MarkD]

Ejector

First 777s arrive March 07 IIRC so soon after that I think.