Howard backs airline merger
In a surprise move, Prime Minister John Howard has publicly stated that Qantas and Singapore Airlines should merge to form a ” great regional airline”.
The comments came after a meeting with the Singapore Prime Minister Lee Hsien Loong. “They are two great airlines; they operate in the same part of the world. Qantas is a very efficient, capable operator but it’s a challenging economic environment.” the PM said.
The two leaders were engaged in a meeting at the Asia-Pacific Economic Co-operation forum, where Mr Lee took the opportunity to press Mr Howard for Singapore Airlines to be given access to Qantas routes.
Quite how this will sit with Qantas CEO Geoff Dixon is not clear, particularly as only last week he stated that the time for a merger “had probably passed”.
A spokesman for the airline, Stephen Forshaw, said: “Qantas and Singapore Airlines are both listed companies and for there to be co-operation of the sort [the Prime Minister] suggests there needs to first be considerable liberalisation in the airline regulatory environment, and a willingness from the organisations, and their shareholders, to pursue a relationship.
“Qantas has recently ruled it out, and we have said it is an idea ahead of its time. Nothing has changed.”
The Government is considering options for other airlines to gain increased access to the Australian skies along with the question of foreign ownership of Qantas in the coming months.
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