Australia, Singapore to discuss SIA access to Australia-US routes
Australia, Singapore to discuss SIA access to Australia-US routes
Agence France-Presse
Sydney
Transport ministers from Australia and Singapore will meet next
month to discuss opening routes from Australia to the United
States to Singapore Airlines, a move hotly contested by Qantas, a
government spokesman said on Tuesday.
A spokesman for Transport Minister John Anderson said the
talks with his Singapore counterpart Yeo Cheow Tong would take
place in mid-February in Canberra and had been called at
Singapore's request.
The meeting comes amid talk of cut-throat competition between
the two carriers after Qantas set up a low-cost Asian airline
based in Singapore, Jetstar Asia, putting it in direct
competition with the Singapore flag carrier in its home market.
Flights between Australia and the United States are currently
restricted to airlines from the two countries concerned and are
among Qantas' most profitable routes.
The spokesman said the government was happy to talk to the
Singaporeans about the issue and had some points of its own it
wished to raise.
"The government will make its mind up after that and won't be
pressured into making a decision," the spokesman said.
Australia would also be raising issues about limited access to
the European market out of Singapore, he said.
Qantas has argued that it needs protection amid the turbulent
world airline market after the attacks of Sept. 11, 2001 but
Singapore Airlines argues that the airline's soaring profits
suggest otherwise.
The Australian flag carrier reported a record net profit of
A$648.4 million (US$460.4 million) for the year to June 2004.
Qantas has said giving Singapore Airlines access to the
Australia-U.S. routes would effectively put it at a competitive
advantage.
"Qantas could still not compete with Singapore Airlines on the
majority of Singapore Airlines' routes between Singapore and the
United States due to restrictions in Australia's bilateral
agreements with third countries," said Peter Gregg, the airline's
chief financial officer.
Singapore Airlines also had the option to establish a wholly-
owned Australian-based airline if it wished, he said, noting that
fuel prices remain at record highs and the global aviation
industry subject to many external shocks.
"Qantas is not protected and does not seek protection," Gregg
added.