Sing Air ponders domestic route
 

SingAir ponders domestic route
By JOHN MASANAUSKAS
27aug02 Daily Telegraph (Sydney)

MELBOURNE airport could become the hub of a new domestic airline being considered by Singapore Airlines.


Airport managing director Chris Barlow said yesterday that he had met an evaluation team from the airline.

"They were over the moon about the airport. They thought it was terrific," Mr Barlow said.

"We'd like to think they would be based here."

Singapore Airlines has been discussing terminal gate access with major Australian airports, but the carrier is yet to confirm a bid to challenge Qantas and Virgin Blue on domestic routes.

Some aviation analysts believe Singapore and an Australian partner could launch a new carrier in early 2003.

Mr Barlow said the airport had a very good relationship with Singapore, which he said might increase its daily international services from two to three.

The privatised airport yesterday announced a maiden pre-tax profit of $3.6 million and a 1.3 per cent rise in international passengers, despite the September 11 terrorist attacks.

But it suffered a 5.5 per cent drop in domestic travel, mainly because of Ansett's collapse.

Virgin Blue, which moved into Ansett's former terminal on Sunday, yesterday announced it had started legal action against Sydney airport over access to its old Ansett terminal.

Virgin chief executive officer Brett Godfrey said Sydney had reneged on a deal made in April.

"What they're asking for now is an outrageous cost to add to the travelling public," he said.

Mr Godfrey said Virgin had started proceedings in the New South Wales Supreme Court and was also considering taking action under national competition laws.

Sydney airport spokesman Peter Gibbs said a Federal Government review of the April deal had not backed Virgin's claims.

"We are keen to have Virgin Blue in our terminal and the door is always open (to negotiations)," he said.

Virgin Blue has out grown its $9 million home in the domestic express terminal at Melbourne Airport and moved into Ansett's former facilities.

Mr Barlow said another use would be found for the terminal building, probably for freight.

The gate lounge area will be dismantled and put up for sale.

Virgin Blue yesterday celebrated the opening of its new terminal.

The airline last month signed a 10-year lease on the terminal.

Thanks Airtart

Just as our early pioneers pondered the 'riddle of the rivers' some of us are doing exactly that now. What may lie ahead? After reading other posts it is still uclear as to what will occur in our skies.

It isn't half obvious that we need some SERIOUS competition here in OZ as the the pigs continue to mingle at the trough. DJ have not, and probably will not, EVER raise the bar. I hope they do. When Mr Dixon convinced our government that a SQ/AN/NZ deal would crush them, who would have believed that NZ would seemingly now become the fodder as the pigs continue to feed.

Whatever the outcome I just want to see healthy competition here in OZ.

Skystar.

Raise the bar in relation to what?

Don't hold your breath
 

SQ have been "pondering" the Oz aviation domestic market now for close on 10 years but what are they pondering on ? They have had many opportunities to get on board and at bargain prices.

He who dares wins.

You just ain't got it have you SQ !!!!!!

Too Easy
 

They will start, they will be sitting back watching QF and DJ fighting internally , offering a substandard service,borrowing lots of US dollars or diluting there own shares.
But oh what the Tesna Aircraft are due off the production line in September so by December there will be enough Aircraft to start up and well if you can pay cash for them and the maintenace is cheap for at least 3 years then the oncarriage should keep them at least break- even until the people move over to the far superior operation .
There will be no competition just a better Airline For QF and Dj to match but they have got interest payments to worry about.
If QF is lucky SIA will let them live only so the people can really see how good they are going to be.....
If SIA dont do it i will its too Easy.............:D :D

The last really serious effort by SQ to 'get on board' was when they wanted to buy, (and save?), Ansett, they were thwarted then by ANZ who may well have been acting at the behest of QF.

SQ certainly 'have it', just a case of when, I suspect.

Rambo, wan't it a MoU, never an order. If that were the case, what TESNA a/c?

Keg. My memory may be a little rusty & I'm happy to be proven wrong, but I recall something about the Tesna aircraft being cancelled orders. A similar deal to the AA/QF 738's. I think the A320's were rolling down the production line without owners, hence the deal on the MoU, but like the administrators, I doubt Airbus got a deposit!!

AsiaPulse Thurs 10:27am AEST

Australian State Urges Singapore Airlines to Set up Shop

MELBOURNE, Aug 29 Asia Pulse - Victorian tourism operators have urged Singapore Airlines to locate in Melbourne amid speculation the airline will launch into the Australian domestic market.
The Victorian Tourism Industry Council (VTIC) said the Victorian government and Melbourne Airport should do all they could to encourage the airline to locate its domestic base in Melbourne.

VTIC chairman John Button said Melbourne was Australia's only airport without a curfew and was closer than Sydney to key Asian cities.

"Melbourne's distinct advantages as a location for an airline headquarters would provide Singapore Airlines with everything it needs to develop not only a regional hub, but a domestic base from which it could operate a competitive domestic service," he said.

"With the departure of Ansett a year ago, there is still a vacuum for a second major carrier, and all the infrastructure is here in Melbourne."

Mr Button's comments follow reports yesterday that a Singapore Airlines evaluation team had met with Melbourne Airport managing director Chris Barlow.

"They were over the moon about the airport. They thought it was terrific," Mr Barlow told the Herald Sun.

"We'd like to think they would be based here."

But a spokesman for federal Transport Minister John Anderson today said the minister had not been approached by the airline about launching a domestic service.

"We don't know what they are proposing, if in fact they are proposing anything," he said.

But he said Mr Anderson generally welcomed more competition on the domestic market.

Qantas chairwoman Margaret Jackson yesterday said Singapore Airlines would be "brave" to enter the domestic market.

"If they want to lose a lot of money I guess they can come down here," she said.

ASIA PULSE

They've been 'pondering' now for just shy of 12 months. I wonder if they are ever going to bother making the 'D'.

Surprise, surprise....Margeret Jackson does't think it would be a good idea that an airline with more money than QF should start up a green-fields carrier in Australia. All of that Star Alliance on-carriage is obviously helping her bottom line somewhat.

I wonder whether Branson's legal action against SACL would temporarily preclude them (SACL) from awarding gates in the Sydney Ansett terminal to a prospective new entrant.

If it does, SQ may be in for a bit of a wait.

It didn't stop them giving them to QF.

I think you will find SQ are in the advanced stages of securing terminal space.

Without it, they would have left the building months ago.

Mrs Jackson should watch this space - and her bottom line - closely.

I agree with oicur
Cirrus

The Singaporeans tried and often off-set approach of sitting back,plotting (all supposedly) carefully analysing the market for the long-term outcome has failed them dismally in the past several years with the outcome being not only a loss of face but also the loss of hundreds of millions of $.

They have failed to correctly analyse and interpret certain contingencies critical to the final outcome - mainly to do with understanding people and interpreting attitudes of their adversaries so to speak.

The Ansett/Air NZ debacle is a case in point.
They failed to anticipate the moves of not only the QF board but also the NZ government,Brierley investments as well as the Air NZ board (which they themselves were a member).

It was handled carelessly by SQ and with great manipulative skill and cunning on the part of Geoff Dixon and his team at QF.

The purchase of 49% of Virgin Atlantic has caused numerous headaches for Dr Cheong also - particularly in the wake of 9/11 and almost caused Virgin Atlantic to go into administration early in the peace.

Numerous other ventures have come under criticism also in Singapore.

I agree - SQ have had numerous good opportunities in this country and have let them go by the wayside with disastrous consequences.
Clearly their approach is in need of rectification.

To start up an airline just to provide on-carriage seems inappropriate and the securement of terminal space in Oz is also critical.
They could have purchased the AnNsett Sydney terminal and derived income from that for a relatively most $190million.
Now they will have to pay through the nose and share the less modern portion of the terminal with someone else as QF has secured the modern B concourse.

A lot of wishful thinking but once again its going to cost them alot and for what?????

I agree, and I find it hard to believe that they could have missmanaged the situation in this way...Why didn't they pick up Ansett on the 14th Sept 2001, or right after the Tesna deal fell through...I just feel that the Howard Govt. had a lot to do with this especialy Anderson...I remember a reporter in Singapore saying that SQ was confused why the Victorian Govt. was up there trying to get them involved and they hd no response or approaches from the Federal Govt....and yes the terminals are crucial...because of the 30 year leases Ansett and Qantas had could make life difficult for new starts...I'd love to know the real truth behind all of this...:(

I believe Branson's clever and timely court action may effectively shelve any current plans SQ have for a domestic operation. I would imagine the courts would prohibit SACL from negotiating any further terminal leases until a decision is reached on Virgin's claims. SQ will not commence without iron clad guarantees.

Timing is everything.

Yet again, the good doctor may have missed his sampan.

should read
SQ will not commence.............!
:D

If SQ were to start up, they would be putting forward a Premium Airline with business and first class travel. Apart from Melbourne, where they could lease some gates, what other terminals are they going to operate from. There is nothing left. In Brisbane, Virgin have bought the Ansett terminal, therefore only leaving the common user area, (hardly suitable for a Premium airline), In Sydney there is no telling how long that will take to sort itself out, (and SQ wont just jump in and pay the going rate just to get in quick), In Adelaide, Virgin will be moving in there later in the month of September, leaving the International SHED that they operate out of currently. Again, hardly high quality stuff.
There are a lot of guys on this forum who desperately want/think that SQ are about to start up just so they can get a job, but guys, don't go and get the A320 endorsement just yet.;)