Backpack loses out on India to Qantas
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Backpack loses out on India to Qantas
Tues "The Australian"
Backpack loses out on India to Qantas
By Steve Creedy, Aviation writer
June 08, 2004
PLANS by low-cost international contender Backpackers Xpress were dealt a blow yesterday after the International Air Services Commission issued a draft ruling giving Qantas all available capacity on the India-Australia route.
Brisbane-based BPX, which wanted to fly all-economy jumbo jets from Britain to Melbourne via Delhi and Bangkok later this year, vied with Qantas for 2100 seats a week available to Australian carriers on the India route.
But the IASC found BPX was not far enough through the regulatory process and concluded the proposed airline was "not reasonably capable of implementing its application at this stage".
It found the public benefit on the India route was likely to be maximised by the allocation of all available capacity to Qantas.
Qantas plans to start three services a week to Mumbai from September and could introduce an additional two services as early as next April.
"The commission is aware that allocating all the India capacity to Qantas closes off the possibility of Backpackers Xpress operating via Delhi as proposed, at least until additional capacity is negotiated under the air services arrangements," the commission said in its determination.
"However, the commission notes that the Department of Transport and Regional Services is seeking air services discussions with the Indian aeronautical authorities as a matter of course."
The commission left the door open for BPX to reapply if additional capacity was secured on the route.
It also noted that the airline could still operate via Bangkok to Britain and Germany, providing it could prove it could obtain the necessary approvals and was capable of implementing its application.
The commission normally seeks Transport Department advice on whether it considers a new airline to be reasonably capable of obtaining the necessary approvals.
"In this case, the commission understands that Backpackers Xpress has not initiated a formal process for obtaining an international airline licence but has started the process for obtaining an aircraft operator's certificate," it said.
Yesterday's decision came after Minardi Formula One racing boss Paul Stoddart said last week he was in talks with BPX to enter the Australian aviation market.
Mr Stoddart said his European Aviation Air Charters could provide the 747s for BPX's low-cost service.
The Minardi boss delayed plans for a domestic Australian start-up because of worries about the effect of Qantas's low-cost offshoot Jetstar.
A reorganisation of European Aviation also resulted in 80 per cent of its workforce being sacked.
Mr Stoddart said that reaching an agreement with BPX would take at least another two months.
BPX officials were unavailable for comment yesterday.
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Backpack loses out on India to Qantas
By Steve Creedy, Aviation writer
June 08, 2004
PLANS by low-cost international contender Backpackers Xpress were dealt a blow yesterday after the International Air Services Commission issued a draft ruling giving Qantas all available capacity on the India-Australia route.
Brisbane-based BPX, which wanted to fly all-economy jumbo jets from Britain to Melbourne via Delhi and Bangkok later this year, vied with Qantas for 2100 seats a week available to Australian carriers on the India route.
But the IASC found BPX was not far enough through the regulatory process and concluded the proposed airline was "not reasonably capable of implementing its application at this stage".
It found the public benefit on the India route was likely to be maximised by the allocation of all available capacity to Qantas.
Qantas plans to start three services a week to Mumbai from September and could introduce an additional two services as early as next April.
"The commission is aware that allocating all the India capacity to Qantas closes off the possibility of Backpackers Xpress operating via Delhi as proposed, at least until additional capacity is negotiated under the air services arrangements," the commission said in its determination.
"However, the commission notes that the Department of Transport and Regional Services is seeking air services discussions with the Indian aeronautical authorities as a matter of course."
The commission left the door open for BPX to reapply if additional capacity was secured on the route.
It also noted that the airline could still operate via Bangkok to Britain and Germany, providing it could prove it could obtain the necessary approvals and was capable of implementing its application.
The commission normally seeks Transport Department advice on whether it considers a new airline to be reasonably capable of obtaining the necessary approvals.
"In this case, the commission understands that Backpackers Xpress has not initiated a formal process for obtaining an international airline licence but has started the process for obtaining an aircraft operator's certificate," it said.
Yesterday's decision came after Minardi Formula One racing boss Paul Stoddart said last week he was in talks with BPX to enter the Australian aviation market.
Mr Stoddart said his European Aviation Air Charters could provide the 747s for BPX's low-cost service.
The Minardi boss delayed plans for a domestic Australian start-up because of worries about the effect of Qantas's low-cost offshoot Jetstar.
A reorganisation of European Aviation also resulted in 80 per cent of its workforce being sacked.
Mr Stoddart said that reaching an agreement with BPX would take at least another two months.
BPX officials were unavailable for comment yesterday.
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