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SIA denied Aus-US Routes

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Old 13th Jun 2005, 18:19
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SIA denied Aus-US Routes

The Business Times

Mon, June 13, 2005, Singapore

Protecting Qantas means losses in Aussie tourism: SIA


SINGAPORE - Australian travellers and the nation's tourism industry are the losers from Canberra's reported decision to delay Singapore Airlines access to the Australia-US route, SIA said on Monday.

'We're disappointed but not surprised by reports of the deferral of this decision - after all, it isn't the first time,' SIA's vice president of public affairs, Stephen Forshaw, said in a statement.

'Travellers between Australia and America, and the Australian tourism industry, are the losers from the continued delay by the Australian government in opening access to the Transpacific route.'

The Weekend Australian newspaper reported on Saturday that the Australian government had indefinitely postponed a decision on granting SIA access to the lucrative Australia-US route.

The route has been a hotly contested issue between the two governments after they signed a partial 'open skies' agreement in 2003 that allowed Australian national carrier Qantas unrestricted access to fly in and out of Singapore.

After much lobbying from Qantas, Australia refused to give reciprocal rights, saying it wanted to wait for the world aviation market to improve before allowing SIA to compete on the Australia-US route.

Mr Forshaw said SIA would continue to press the Australian government on the issue.

'We will highlight that opening access is consistent with free trade principles, with fairness and open competition, and with delivering sustainable growth for the aviation and tourism sectors,' he said…………..

It’s going to be interesting to see what SIA will do with all the B777-300ER’s due to arrive in 2006 and which were earmarked for use on the confidently planned Aus-US routes.

To save them being parked in the desert, the smart money has it that disposal of the 747-400 fleet will now be accelerated (despite A380's being six months late) and the 777-300ER’s will quickly replace them on the European routes currently served by the aging behemoth.

How long before SIA flight crews recently posted to the ’744 are pushed back to the ‘777 and how many of them will now be “volunteered” to SIA Cargo thus cutting the need to recruit from outside?

Interesting times (again).
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Old 14th Jun 2005, 01:47
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Seems like the Australian weekend papers and the Singapore Business Times have jumpted the gun on this. Today's Straits Times says "Australia has denied a newspaper report over the weekend that it has put on hold indefinitely its decision on giving Singapore Airlines access to the Australia-US route. In issuing the denial yesterday, a spokesman for Prime Minister John Howard said the final decision had yet to be made. It could be weeks and cabinet would have to discuss it in the context of aviation globally" etc. etc. etc.

Im not sure if your speculation about the 777s being bought specifically for this route is correct Jstars. They were ordered years ago as far as I know and the opportunity again to get the Australian Cabinet talking about opening up the route is relatively recent. If you are right perhaps you could let us know more about it.

On the other subject of pilots being "volunteered" over to the Cargo company I will be surprised if there are any takers for the present offer that has been couched in terms of a "short window of opportunity" that will close in a few months. For as long as there are no 90% rebate tickets, no payment for paxing, no schooling for kids over the age of 18 and a reduction of annual leave it simply isnt worth it. There isnt even any expatriation allowance included which makes the annual $20K carrot mostly worthless.
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Old 14th Jun 2005, 03:18
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Straits Times, June 14 2005

No Decision yet on SIA: Canberra

Access decision to trans-Pacific route could take weeks, says spokesman


Australia has denied a newspaper report over the weekend that it has put on hold indefinitely its decision on giving Singapore Airlines (SIA) access to the Australia-United States route.

In issuing the denial yesterday, a spokesman for Prime Minister John Howard said the final decision had yet to be made: “It could be weeks and Cabinet would have to discuss it in the context of aviation globally.”

The spokesman also told the Sydney Morning Herald newspaper that The Weekend Australian got it wrong when it reported on Saturday that Mr Howard had phoned Prime Minister Lee Hsien Loong on Friday to tell him of the decision.

“That’s not the case,” she was quoted saying in the newspaper yesterday.

Some Australian newspapers have suggested that it was PM Lee who called Mr Howard last Thursday night about the issue.

PM Lee was apparently told that a decision was still possibly weeks away, despite the scheduled discussion of the issue today by the Australian Cabinet.


Hmm. Looks like quite a bit of foot-dragging going on!
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Old 14th Jun 2005, 09:04
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Not forgetting....

1. NO anual free ticket
2. NO transport allowance to and fro to Changi Airport
3. NO defined command training programme

CargoBoy
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Old 16th Jun 2005, 01:44
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The Australian

SingAir loses US flight

June 15, 2005


SINGAPORE Airlines (SIA) said today it would not give up the fight to fly the Australia-US route after the Federal Government denied the carrier access, protecting Qantas' lucrative market.

Australian Transport Minister John Anderson's office said today SIA has been denied access to the lucrative route and that the Singapore government was told of the decision last week.

"The issue of trans-Pacific access has been considered at the highest levels by the Australian government and it has decided that the time is not right for Singapore Airlines to be granted access to the route," a spokesman for Mr Anderson told AFP.

Qantas, which makes about 15 per cent of its profits from the Australia-Los Angeles route, has in the past expressed opposition to allowing SIA access to the route.

The Australian carrier controls about 75 per cent of direct flights and United Airlines has the remaining 25 per cent.

The Singapore carrier was disappointed with the decision but said it did not come as a surprise since Canberra had delayed making a decision on the matter in the past.

"We restate our view that the delay is a disappointment, but not surprising, given that the decision has been deferred several times previously," an SIA spokesman said.

"Singapore Airlines is seeking the ability to compete beyond Australia in the same way that Qantas now competes beyond Singapore.

"We ask for a level playing field; for consumers to be given the opportunity to make choices between the USA and Australia."
He said Singapore Airlines, which has been lobbying for access to the route for three years, had not been given an indication about when the issue might be reconsidered.

SIA vowed to continue pushing for access which is currently dominated by Australian flag carrier Qantas.

"The interests of all involved are best served by making a decision to open one of the world’s most protected air routes to competition," the SIA spokesman said.

"In the meantime, Singapore Airlines will continue to press its case with the Australian government ... by highlighting the benefits of competition, and why protection of Qantas from competition comes at significant cost to the travelling public and the tourism industry."

SIA recently released details of a report it sent to Canberra which claimed that giving the airline access to the Australia-US route would generate an extra $126 million dollars a year from US tourism spending in Australia.

The report also said fares would drop and growth in demand for travel to Australia from the United States would grow by four to eight percent.


The Australian Government decision looks to be final for the time being although the Singaporean Transport Minister is shortly being sent cap in hand to Canberra to attempt a retrieval of the situation – I’d guess that he will be unsuccessful.

From memory, SIA ordered the B777-300ER’s either at the same time or shortly after starting the lobby process for the Aus-US routes, three years ago, so jstars2’s speculation may have some basis in fact.

As for pilots being "volunteered" over to SIA Cargo, the airline has a track record for doing exactly what it damned well likes – Take the case of ex-Silk Air A320 rated pilots who moved to SIA on the B777 fleet and were subsequently "volunteered" to Tiger Airways as a stop gap to cover the dearth of suitable recruits to Tiger due the poor package on offer.

The Alpa-S response to a similar future gambit? – “Your humble citizens await your instructions”.
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Old 16th Jun 2005, 08:15
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interesting how the singapore government has, in a sense got a taste of it's own medicine. despite claiming to be one of the world's most open economies, singapore still practices some basic protectionism, such as:

1. cars going to malaysia have to have three quarter full tanks

2. air asia denied permission to run a bus service to johor airport

3. awair denied permission to operate to singapore because tiger didn't get treated well by the indonesians.

so despite all the talk, singapore is still protectionist as the next guy, except of course when it favours singapore!

the aussies seem to be behaving in exactly the same way, so it's just a question of having to deal with what you dish out yourself!
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Old 16th Jun 2005, 12:20
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Actually, the “volunteering” has already started, with the forced move of very unwilling first officers from the A340-500 fleet to the 744 fleet for what they understand will be mainly cargo carrying duties.
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Old 16th Jun 2005, 16:34
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Actually, the “volunteering” has already started, with the forced move of very unwilling first officers from the A340-500 fleet to the 744 fleet for what they understand will be mainly cargo carrying duties.
If the contract the FOs signed are with the SIA Pax, can they be "volunteered" over to the SIA Cargo just liket that?
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Old 18th Jun 2005, 05:27
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Terryble

If the contract the FOs signed are with the SIA Pax, can they be "volunteered" over to the SIA Cargo just liket that?
This is SQ we're talking about mate... of course they can. They can do whatever they want... it seems as if your contract isn't worth the money it's written up on at SQ.
 
Old 18th Jun 2005, 07:53
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Every contract I have ever signed, (including SIA), has a small clause in it somewhere to the effect that you will serve the company in any capacity they require if called upon to do so, it is intended to cover emergencies like baggage handlers strikes but can also be used to move you from fleet to fleet if circumstances require it, as long as they don't reduce your salary they can do what they like.
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Old 18th Jun 2005, 16:07
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BlueEagle : U mentioned that SIA can move the Captains/FO around as they desire when there is a need to as long as salary package is the same. However, i read somewhere that the Cargo Captains/FO do not get transport allowance, pax allowances, etc.

How can that equate to a similar package?

On the other subject of pilots being "volunteered" over to the Cargo company I will be surprised if there are any takers for the present offer that has been couched in terms of a "short window of opportunity" that will close in a few months. For as long as there are no 90% rebate tickets, no payment for paxing, no schooling for kids over the age of 18 and a reduction of annual leave it simply isnt worth it. There isnt even any expatriation allowance included which makes the annual $20K carrot mostly worthless.
Not forgetting....
1. NO anual free ticket
2. NO transport allowance to and fro to Changi Airport
3. NO defined command training programme
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Old 19th Jun 2005, 08:08
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"As long as they don't reduce your salary" Got it?
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Old 20th Jun 2005, 03:44
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roger that... understood.

With this kind of change in package, who would wanna "volunteer"?...
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