Q-Asia Airlines? Don’t bank on it

Tuesday, 24 Jun, 2008 0

SYDNEY – Speculation today that Qantas chief executive Geoff Dixon may be lining up a merger or an alliance with Singapore Airlines appears well wide of the mark.

Newspapers quoted “gossip following the Qantas board meeting in New York” for suggesting that Dixon, in his final year as boss of Qantas, is ready to open talks.

Other major carriers in the United States and China may be looking at mergers and alliances as a way of tackling soaring fuel bills and sliding profits, but both Qantas and SQ have strong balance sheets and don’t need to jump into a life raft just yet.

Singapore Airlines and Qantas have had a less then cordial relationship with SQ blaming Qantas lobbyists for persuading the Australian government to keep the Singapore carrier off the Sydney-US Pacific route.

The pair’s low cost carriers Jetstar and Tiger have also been at each other’s throats in the Australian domestic market. 



Further speculation that a much happier marriage would appear to be between Qantas and Virgin also seems unlikely, as it would result in some strange bedfellow.

Qantas is linked with British Airways, 
the airline much loathed by Virgin boss Sir Richard Branson.

Virgin Atlantic is part-owned by Singapore Airlines, and Qantas would not appreciate having SQ entering the Pacific route via Virgin’s new V Australia airline, due to launch US services later this year.

– Ian Jarrett



 

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Ian



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