Pressure builds to give SIA Pacific access
CANBERRA – Pressure is mounting on the Australian government to allow Singapore Airlines access to Pacific routes from Australia.
The Victorian Government has called on its federal counterpart to grant Singapore Airlines and other “third country” airlines access on the lucrative route.
In its submission to the National Aviation Policy white paper, the Victorian Government said, “Despite the recent open skies agreement concluded between the Australian and US governments, the establishment of new services to Australia are not a high commercial priority for most United States airlines, which are largely focused on other regions (such as North Asia and the Atlantic).”
The state government said the new agreement had not yet resulted in any new flights coming into Melbourne, noting V Australia had so far only committed itself to the Brisbane-LA and Sydney-LA routes.
Singapore Airlines and Air Canada had their requests to fly the route rejected in February last year.
Qantas controls about 75 per cent of the capacity on the route; United Airlines the rest.
Boeing, in its submission to the White Paper, also called for foreign airlines to be allowed unrestricted rights to enter and leave Australia for Asia, the Middle East and the United States.
“A more liberalised industry creates a more competitive environment, giving passengers more choices through increased flight frequencies and more point-to-point travel,” said Boeing
Qantas boss Geoff Dixon said he was pleased the White Paper would address broader factors shaping the industry, in addition to questions of international market access.
Qantas, in its submission, says the Australian industry risks being marginalised if the nation’s carriers are unable to capture a healthy share of international market growth. It says the industry will then find it increasingly difficult to invest, create jobs, operate marginal routes, serve regional destinations and support tourism.
“In the coming years, existing pressures for change are likely to intensify, and new ones are bound to emerge,†Dixon said.
“In addition to the impact of globalisation and increased competition, higher input prices, an ongoing focus on security and pressing environmental considerations are among factors that will require the industry to achieve unprecedented efficiencies,†Dixon added.
Ian Jarrett
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