Cathay bid a check to Qantas HK plan
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Cathay bid a check to Qantas HK plan
Wed "Sydney Morning Herald"
Cathay bid a check to Qantas HK plan
By Scott Rochfort
October 8, 2003
Cathay Pacific has once again signalled its intention to try to secure rights to fly between Australia and the US, raising questions whether it aims to frustrate Qantas's long-held ambitions of flying daily services from Hong Kong to London.
With talks between Australia and Hong Kong over a more liberalised aviation agreement set to begin in Canberra on November 18, the Centre for Asia Pacific Aviation's managing director Peter Harbison said Cathay was making an impossible request, considering the recent talks between Australia and Singapore.
Last month, the Australian and Singaporean governments effectively agreed to protect Qantas's lucrative Los Angeles route from the entry of Singapore Airlines until "greater stability" prevailed in the aviation industry.
But unlike a similar request by Cathay last year, which eventually led to a breakdown in talks, Mr Harbison said: "The thing that has changed in Hong Kong is that it's now the airport that's calling the shots."
In the wake of the recent SARS crisis, Hong Kong's huge Chek Lap Kok Airport has pushed hard for the Hong Kong Government to adopt a more "open skies" policy to boost air traffic through the territory, which analysts say could work in Qantas's favour.
JP Morgan's Hong Kong aviation analyst Peter Negline said that, unlike the recent Singapore talks, Qantas had much to gain from a freer aviation agreement between Australia and Hong Kong, given the Flying Kangaroo already has relatively free access into Singapore.
Noting the Hong Kong-London leg was far shorter than all of Qantas's existing Asia-Europe legs, Mr Negline said: "Flying the Kangaroo Route via Hong Kong would provide better operating efficiencies for Qantas compared to flying through Singapore."
Yet noting the emergence of China as one of Australia's largest inbound tourist markets, analysts say any liberalised agreement between Australia and Hong Kong could be a "win-win".
With Cathay reportedly hoping for additional capacity into Cairns and Perth, it is speculated Canberra may move to ease recent criticisms from the tourism industry. Foremost among these is the claim that the Federal Transport Minister John Anderson had cost Australia thousands of US tourists by blocking Singapore Air from Qantas's Los Angeles route.
Yet sources within the Department of Transport remained circumspect over the coming talks and have already noted that Qantas's Australia-LA route will remain strictly off-limits.
"It's been hard going over the last couple of rounds and there's most probably some distance to go before we could be confident of an outcome," one departmental source said.
"It's all about expanding rights and a package of benefits for both sides," he added.
==========================================
Wed "The Australian"
Cathay seeks LA trade-off
By Steve Creedy
October 08, 2003
CATHAY Pacific has renewed its bid for access to the Qantas-dominated Sydney-Los Angeles route as talks between Australia and Hong Kong take place next month.
The Hong Kong-based carrier wants to fly a triangular Sydney-Los Angeles-Hong Kong route in return for allowing Qantas to pick up passengers and freight in Hong Kong and fly them to European destinations.
Cathay general manager of international affairs and alliances Andrew Pyne said the airline saw the trans-Pacific route as the only viable trade-off for allowing Qantas added "fifth freedom" rights beyond Hong kong.
"A circle Pacific route, with one aircraft going clockwise and another going anti-clockwise, would be an attractive proposition," he said.
Australia's Transport De partment is likely to attempt to open up Hong Kong as a hub for Australian carriers as both sides are looking at increased capacity between the two destinations.
Centre for Asia-Pacific Avi ation managing director Peter Harbison gave Cathay little hope of Sydney-Los Angeles rights. But Qantas had better chances of flying Hong Kong-London, because the island was liberalising its airport.
==========================================
Cathay bid a check to Qantas HK plan
By Scott Rochfort
October 8, 2003
Cathay Pacific has once again signalled its intention to try to secure rights to fly between Australia and the US, raising questions whether it aims to frustrate Qantas's long-held ambitions of flying daily services from Hong Kong to London.
With talks between Australia and Hong Kong over a more liberalised aviation agreement set to begin in Canberra on November 18, the Centre for Asia Pacific Aviation's managing director Peter Harbison said Cathay was making an impossible request, considering the recent talks between Australia and Singapore.
Last month, the Australian and Singaporean governments effectively agreed to protect Qantas's lucrative Los Angeles route from the entry of Singapore Airlines until "greater stability" prevailed in the aviation industry.
But unlike a similar request by Cathay last year, which eventually led to a breakdown in talks, Mr Harbison said: "The thing that has changed in Hong Kong is that it's now the airport that's calling the shots."
In the wake of the recent SARS crisis, Hong Kong's huge Chek Lap Kok Airport has pushed hard for the Hong Kong Government to adopt a more "open skies" policy to boost air traffic through the territory, which analysts say could work in Qantas's favour.
JP Morgan's Hong Kong aviation analyst Peter Negline said that, unlike the recent Singapore talks, Qantas had much to gain from a freer aviation agreement between Australia and Hong Kong, given the Flying Kangaroo already has relatively free access into Singapore.
Noting the Hong Kong-London leg was far shorter than all of Qantas's existing Asia-Europe legs, Mr Negline said: "Flying the Kangaroo Route via Hong Kong would provide better operating efficiencies for Qantas compared to flying through Singapore."
Yet noting the emergence of China as one of Australia's largest inbound tourist markets, analysts say any liberalised agreement between Australia and Hong Kong could be a "win-win".
With Cathay reportedly hoping for additional capacity into Cairns and Perth, it is speculated Canberra may move to ease recent criticisms from the tourism industry. Foremost among these is the claim that the Federal Transport Minister John Anderson had cost Australia thousands of US tourists by blocking Singapore Air from Qantas's Los Angeles route.
Yet sources within the Department of Transport remained circumspect over the coming talks and have already noted that Qantas's Australia-LA route will remain strictly off-limits.
"It's been hard going over the last couple of rounds and there's most probably some distance to go before we could be confident of an outcome," one departmental source said.
"It's all about expanding rights and a package of benefits for both sides," he added.
==========================================
Wed "The Australian"
Cathay seeks LA trade-off
By Steve Creedy
October 08, 2003
CATHAY Pacific has renewed its bid for access to the Qantas-dominated Sydney-Los Angeles route as talks between Australia and Hong Kong take place next month.
The Hong Kong-based carrier wants to fly a triangular Sydney-Los Angeles-Hong Kong route in return for allowing Qantas to pick up passengers and freight in Hong Kong and fly them to European destinations.
Cathay general manager of international affairs and alliances Andrew Pyne said the airline saw the trans-Pacific route as the only viable trade-off for allowing Qantas added "fifth freedom" rights beyond Hong kong.
"A circle Pacific route, with one aircraft going clockwise and another going anti-clockwise, would be an attractive proposition," he said.
Australia's Transport De partment is likely to attempt to open up Hong Kong as a hub for Australian carriers as both sides are looking at increased capacity between the two destinations.
Centre for Asia-Pacific Avi ation managing director Peter Harbison gave Cathay little hope of Sydney-Los Angeles rights. But Qantas had better chances of flying Hong Kong-London, because the island was liberalising its airport.
==========================================
My guess is that these talks won’t be any easier than in the past. From what I have seen of past meetings the Hong Kong Government play hardball for fifth freedom rights. Just like CX doesn’t make Government policy neither does the Hong Kong International Airport Authority. The government will take everyone’s advise on board when negotiating with the Australian Government, but in the end they will do what they think is best for Hong Kong. My best guess is that the negotiations for Fifth Freedom rights will fall apart as they always have.
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Qantas chances are nil particularly if they use a peanut like Anderson to try and help them. Don't forget Hong Kong is now run by Beijing and they have a time honored way of doing business. Qantas as usual want everything there own way and refuse to make any concessions to other carriers and if they don't get what they want they send in Anderson to do their dirty work. China is an emerging economy that's taken the west by surprise and everyone wants a piece of the action, IE: more people than ever are travelling from China overseas via Hong Kong. Qantas is operating old worn out aircraft that are not maintained the way they were (except for a few 737's and A330's) with crappy or no (767) in flight entertainment and have reduced their once fine service to a quality less than you could buy at a road side stall in Beijing. They are trading on their past reputation as a premium airline whilst still charging premium prices. That's why they don't want an airline with the service etc of Cathay operationg to the US from Oz.
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Hoodooguru, CX and SQ for that matter. You better not mention it too much though here, all the QF cry babies will get on with the worlds smallest violin.
Bring on CX and SQ for the US routes, in time it will happen, Anderson won't be around forever.
Bring on CX and SQ for the US routes, in time it will happen, Anderson won't be around forever.
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Hey Pete, I am assuming you got some sort of automatic program that runs that sort of post without you having to actually to be at the keyboard?... you know.." Pathetic Wind-up for Windows 4.5" or " SQ, VB and Rex tie-up, Version 2.1"?
Maybe it is "Lame attempt to milk any QF topic for stirring value, version 1.0" If that is what you have... man you need to update.. it is getting old.
Maybe it is "Lame attempt to milk any QF topic for stirring value, version 1.0" If that is what you have... man you need to update.. it is getting old.
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Another otherwise debate worthy topic being reduced to the lowest common denominator.....AGAIN! Oh no, that would actually be an insult to the general public and we all know how unspeakably stupid they are most of the time don't we gentlemen!
