26 February 2008

Qantas requests unlimited capacity on the Pacific

A Report in The Australian says that Qantas has moved quickly to act on a new open-skies agreement between the US and Australia by asking for unlimited capacity and frequency for passenger and cargo services on the route.

In an application submitted last week to the International Air Services Commission, Qantas said it wanted to revoke its existing US route determinations in light of the new liberalised air services agreement.

The landmark agreement, signed this month, gives Australian and US airlines unlimited access to each other's markets and is expected to eventually boost competition and lower fares across the Pacific.

The airline is seeking a 10-year determination and said it wanted the capacity to be able to be used by Qantas or any of its wholly owned subsidiaries in the interests of "commercial and operational flexibility".

It also sought permission to code-share with its own subsidiaries on the route and to retain existing code-shares with British Airways, American Airlines, Mexicana Airlines, Air Pacific and Air Tahiti Nui.

A Report by The Mole

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