Cheong Choong "Starting new airline viable"
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Location: Metung RSL or Collingwood Social Club on weekends!
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Thankyou,Wirraway for your latest news on SQ. I am not surprised but very saddened, because................
now I am going to have to get on the phone and invite some friends over to polish off that case of Crownies in my shed !!!!!!!!
now I am going to have to get on the phone and invite some friends over to polish off that case of Crownies in my shed !!!!!!!!
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I didn't know it was Wirraways' news. I thought it was a copy of a newspaper article, one of thousands, with a comment from an "expert analyst", also one of thousands. This particular article just happens to conform to your point of view, therefore, it is surely factual, true, accurate and without a hint of bias.
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Another opinion on the matter from The Australian
For all the talk of a third airline in Australia, there's not much of
substance on the horizon, says aviation reporter Steve Creedy
THEY seek it here, they seek it there -- but a third entrant to Australia's
domestic airline market is proving more elusive than the Scarlet Pimpernel.
Speculation about a rival to Qantas and Virgin Blue is rarely off the radar
screen, as scraps of information surface or the concept is pushed by various
parties.
But the question asked in taxis, at parties and on talkback radio -- Will
the increasingly unpopular airline duopoly be broken? -- remains largely
unanswered.
Like Baroness Orczy's hero of the French Revolution, that damned elusive
third carrier remains a shadowy figure, difficult to pin down and seemingly
impossible to kill off.
Last week, Qantas chief executive Geoff Dixon expressed his fears that
Australia's liberal aviation regime meant a third airline might take off
"at any time''.
"Cherry-picking the most lucrative routes is an obvious starting point for
any entrant,'' he said. "This places constant pressure on incumbents.''
Virgin Blue boss Brett Godfrey also frets about a third carrier as his
discount airline heads towards a partial float next year.
"Our view is there has always been room for a third entrant,'' he said last
month. "There is more than likely to be a move by such a player, I believe,
within the next 18 months -- possibly sooner.''
Yet, whether that third carrier will ever become more than a speculative
speck on the horizon is a question that has split the aviation industry.
Singapore Airlines, headed by Cheong Choong Kong, remains the stand-out
favourite to bust the Qantas-Virgin Blue duopoly, with Air New Zealand and
Emirates also touted as possibles. A few Chinese airlines have been named,
but not with much seriousness.
Singapore and Cheong have a long-standing interest in the Australian market.
Early this year, the airline admitted that establishing a third domestic
carrier was an idea that had crossed its mind. It was a little more specific
in July, confirming that one of its airport services teams had been
investigating domestic access to Australian markets.
While the Singaporeans don't pretend their arrival is imminent, they're not
about to kill the golden goose of high-profile publicity. Simply translated,
their message is: "We're thinking seriously about it.''
It's a message actively pushed by interested parties such as tourism bodies
and the Sydney Airports Corporation (SACL), which would love another
domestic competitor to help fill its newly privatised coffers and help its
argument with Virgin Blue about how the former Ansett terminal should
operate.
SACL, which believes the domestic market is capacity constrained under the
duopoly, was quick to comment early last month when a television report
claimed Singapore was going to relaunch Ansett using a fleet of 24 Airbus
aircraft.
The report generated excitement because of the detail involved and its claim
that a proposal to revive the Ansett name would be put to a meeting of the
Singapore Airlines board on September 11.
On both occasions, the Singaporeans sprinkled some water on the speculation
without dousing the fire. The board did meet that week -- although not on
September 11 -- and it's believed to have received a progress report on
Australia.
But a firm plan is understood to be some time off. And even if the third
airline option is put up, there's no guarantee the board would accept it.
Sources at Singapore denied it had an Australia-bound Airbus fleet waiting
in the wings or that it necessarily wanted to resurrect the Ansett brand,
although the airline admitted it included questions about Ansett in a
regular customer survey.
Yet even if Singapore does decide to take on Qantas and Virgin Blue,
Australia is unlikely to see the kinds of fare wars experienced in
2000-2001.
Singapore isn't a discount carrier; it's a full-service airline that prides
itself on an upmarket image and charges accordingly.
Its entry into the market might also see Dixon's cherry-picking fears
realised as it moved to snare well-heeled travellers on trunk routes.
Australia is one of the airline's biggest overseas destination. With 68
weekly flights to five cities, Singapore is the second biggest carrier after
Qantas operating to and from this country.
It's been gradually increasing its Australian presence. Last year, Singapore
hired former Qantas deputy chief executive Peter Stainlay to help it better
exploit the market.
Singapore also has a long history of trying to get a foothold here,
including a failed bid to gain a 25 per cent stake in Qantas, an
unsuccessful attempt to buy 50 per cent of Ansett and its ill-fated 25 per
cent ownership of Air New Zealand-Ansett.
The Ansett collapse 12 months ago left Singapore, along with other airlines
in the giant Star Alliance group, without an Australian feed.
Singapore was hurt less than some of its alliance partners because it
regularly serves every major Australian city. The airline says only a modest
proportion of its passengers travel beyond their initial destination. It's
also cut a deal with Qantas allowing it to offer its passengers domestic
seats at discount rates.
But that discount falls short of the rate it got from Ansett, and partnering
with Qantas leaves Singapore disadvantaged in the packages it can offer to
corporate and other affluent customers.
But it will only move on those well-heeled targets if it can build a
business case that allows it to make money. And so far been no sign the
airline has started the necessary talks with government and regulatory
agencies.
Analysts believe Singapore is waiting to see what happens with a potential
deal between Qantas and Air New Zealand before it takes matters further.
Rumours have also circulated of a possible Singapore buyout of British
Airways' 21 per cent stake in Qantas, although BA has made no move to sell.
There remain many -- headed by Qantas -- who doubt the market can sustain
three domestic carriers.
As Dixon has pointed out, the industry lost more than $500 million in little
over nine months during the height of the four-airline battle of 2000-2001.
"Even in the largest domestic aviation market in the world, the US, there
are only five major carriers -- two of which have been in, or close to,
chapter 11 bankruptcy protection in recent years,'' he said.
Yet Dixon is preaching to a public more interested in competition and fare
availability than in complicated airline economics.
Despite Qantas's protests to the contrary, many Australians believe the
reversion to a duopoly has made cheap fares harder to get.
A recent Sydney Airport-commissioned survey of 4000 people found almost two
thirds were in favour of an overseas airline entering the Australian market
to compete with Qantas and Virgin Blue.
With that kind of public support, you can bet the third airline rumours will
continue. And one day, they could well prove to be true.
substance on the horizon, says aviation reporter Steve Creedy
THEY seek it here, they seek it there -- but a third entrant to Australia's
domestic airline market is proving more elusive than the Scarlet Pimpernel.
Speculation about a rival to Qantas and Virgin Blue is rarely off the radar
screen, as scraps of information surface or the concept is pushed by various
parties.
But the question asked in taxis, at parties and on talkback radio -- Will
the increasingly unpopular airline duopoly be broken? -- remains largely
unanswered.
Like Baroness Orczy's hero of the French Revolution, that damned elusive
third carrier remains a shadowy figure, difficult to pin down and seemingly
impossible to kill off.
Last week, Qantas chief executive Geoff Dixon expressed his fears that
Australia's liberal aviation regime meant a third airline might take off
"at any time''.
"Cherry-picking the most lucrative routes is an obvious starting point for
any entrant,'' he said. "This places constant pressure on incumbents.''
Virgin Blue boss Brett Godfrey also frets about a third carrier as his
discount airline heads towards a partial float next year.
"Our view is there has always been room for a third entrant,'' he said last
month. "There is more than likely to be a move by such a player, I believe,
within the next 18 months -- possibly sooner.''
Yet, whether that third carrier will ever become more than a speculative
speck on the horizon is a question that has split the aviation industry.
Singapore Airlines, headed by Cheong Choong Kong, remains the stand-out
favourite to bust the Qantas-Virgin Blue duopoly, with Air New Zealand and
Emirates also touted as possibles. A few Chinese airlines have been named,
but not with much seriousness.
Singapore and Cheong have a long-standing interest in the Australian market.
Early this year, the airline admitted that establishing a third domestic
carrier was an idea that had crossed its mind. It was a little more specific
in July, confirming that one of its airport services teams had been
investigating domestic access to Australian markets.
While the Singaporeans don't pretend their arrival is imminent, they're not
about to kill the golden goose of high-profile publicity. Simply translated,
their message is: "We're thinking seriously about it.''
It's a message actively pushed by interested parties such as tourism bodies
and the Sydney Airports Corporation (SACL), which would love another
domestic competitor to help fill its newly privatised coffers and help its
argument with Virgin Blue about how the former Ansett terminal should
operate.
SACL, which believes the domestic market is capacity constrained under the
duopoly, was quick to comment early last month when a television report
claimed Singapore was going to relaunch Ansett using a fleet of 24 Airbus
aircraft.
The report generated excitement because of the detail involved and its claim
that a proposal to revive the Ansett name would be put to a meeting of the
Singapore Airlines board on September 11.
On both occasions, the Singaporeans sprinkled some water on the speculation
without dousing the fire. The board did meet that week -- although not on
September 11 -- and it's believed to have received a progress report on
Australia.
But a firm plan is understood to be some time off. And even if the third
airline option is put up, there's no guarantee the board would accept it.
Sources at Singapore denied it had an Australia-bound Airbus fleet waiting
in the wings or that it necessarily wanted to resurrect the Ansett brand,
although the airline admitted it included questions about Ansett in a
regular customer survey.
Yet even if Singapore does decide to take on Qantas and Virgin Blue,
Australia is unlikely to see the kinds of fare wars experienced in
2000-2001.
Singapore isn't a discount carrier; it's a full-service airline that prides
itself on an upmarket image and charges accordingly.
Its entry into the market might also see Dixon's cherry-picking fears
realised as it moved to snare well-heeled travellers on trunk routes.
Australia is one of the airline's biggest overseas destination. With 68
weekly flights to five cities, Singapore is the second biggest carrier after
Qantas operating to and from this country.
It's been gradually increasing its Australian presence. Last year, Singapore
hired former Qantas deputy chief executive Peter Stainlay to help it better
exploit the market.
Singapore also has a long history of trying to get a foothold here,
including a failed bid to gain a 25 per cent stake in Qantas, an
unsuccessful attempt to buy 50 per cent of Ansett and its ill-fated 25 per
cent ownership of Air New Zealand-Ansett.
The Ansett collapse 12 months ago left Singapore, along with other airlines
in the giant Star Alliance group, without an Australian feed.
Singapore was hurt less than some of its alliance partners because it
regularly serves every major Australian city. The airline says only a modest
proportion of its passengers travel beyond their initial destination. It's
also cut a deal with Qantas allowing it to offer its passengers domestic
seats at discount rates.
But that discount falls short of the rate it got from Ansett, and partnering
with Qantas leaves Singapore disadvantaged in the packages it can offer to
corporate and other affluent customers.
But it will only move on those well-heeled targets if it can build a
business case that allows it to make money. And so far been no sign the
airline has started the necessary talks with government and regulatory
agencies.
Analysts believe Singapore is waiting to see what happens with a potential
deal between Qantas and Air New Zealand before it takes matters further.
Rumours have also circulated of a possible Singapore buyout of British
Airways' 21 per cent stake in Qantas, although BA has made no move to sell.
There remain many -- headed by Qantas -- who doubt the market can sustain
three domestic carriers.
As Dixon has pointed out, the industry lost more than $500 million in little
over nine months during the height of the four-airline battle of 2000-2001.
"Even in the largest domestic aviation market in the world, the US, there
are only five major carriers -- two of which have been in, or close to,
chapter 11 bankruptcy protection in recent years,'' he said.
Yet Dixon is preaching to a public more interested in competition and fare
availability than in complicated airline economics.
Despite Qantas's protests to the contrary, many Australians believe the
reversion to a duopoly has made cheap fares harder to get.
A recent Sydney Airport-commissioned survey of 4000 people found almost two
thirds were in favour of an overseas airline entering the Australian market
to compete with Qantas and Virgin Blue.
With that kind of public support, you can bet the third airline rumours will
continue. And one day, they could well prove to be true.
