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Open skies debate continues
The question of whether or not to allow greater competition in the Australian skies continues to bubble along with Federal cabinet set to consider options for more flights next month. Cabinet will discuss the new aviation policy, after a review of the aviation market by the Prime Minister, John Howard, the Treasurer, Peter Costello, the Minister for Trade, Mark Vaile, and the Minister for Transport, Warren Truss.
The federal Minister for Tourism, Fran Bailey, said the tourism industry’s attempts to lure more US holidaymakers would be easier if there was more competition on the Los Angeles-Sydney route. Qantas now has only one other competitor, United Airlines.
Ms Bailey said: “We will do much better out of the American market when we’ve got more flights and cheaper flights across the Pacific.”
Certainly Singapore Airlines and Emirates are keen to see a more open and competitive environment.
“When Qantas argues against competition from Emirates, they are arguing for higher prices,” said the airline’s president, Maurice Flanagan. “It is time they were challenged on this.”
Qantas Executive General Manager, John Borghetti, has warned against believing the much trumpeted line that increased capacity will boost the Australian tourist trade. He argues that rather than bringing people here, any extra supply of seats will be filled with Australians heading overseas.
“The majority of passengers that they carry will be Australians out of Australia, not Singaporeans or people from Dubai into Australia.” he said. He also cautioned that Qantas may have to cut jobs if the proposd changes went ahead.
“This is all about fishing in the Australian pond. It’s not about tourism into Australia; it’s about tourism out of Australia. The fact is, the less people Qantas flies, the less people it will employ.”
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