Australia rules out trans-Pacific route for SIA

The Straits Times, May 3, 2007


SYDNEY - AUSTRALIA has ruled out allowing Singapore Airlines to share Qantas's lucrative trans-Pacific route, despite figures showing demand for seats is growing faster than supply.

Transport Minister Mark Vaile said the flag-carrier's Sydney to Los Angeles route would remain off-limits to airlines other than Qantas and Australian discount flyer Virgin Blue 'for some time'.

Quarterly figures from the International Air Transport Association (IATA) this week showed demand for seats on Asia Pacific routes outgrowing available seats by almost one per cent.

A Singapore Airlines spokesman was quoted as saying the figures justified increased competition on the Australia-US route.

Qantas earns as much as 20 per cent of its profits from the route and the government, citing it as a 'key national asset', has repeatedly rebuffed Singapore Airlines' decade-long campaign for access.

'The government has reaffirmed that it has no plans to revisit the issue of rights for Singapore Airlines to operate beyond Australia to the United States for some time,' Mr Vaile's spokesman said on Thursday.

Plans by Virgin Blue to launch flights to the United States would would alleviate any capacity constraints, he said.

'Virgin Blue have recently announced plans to acquire seven Boeing 777-300ER aircraft from Boeing with options for a further six aircraft. The initial seven aircraft will be used by Virgin Blue to launch flights to the United States in late 2008,' he added. -- AFP