Singapore Airlines may get Pacific access

Saturday, 03 Feb, 2006 0

The Australian Federal Government is considering granting Singapore Airlines limited access to important Pacific routes when it completes an open skies aviation policy review by March, reports claim.

And rumours abound that a decision could be announced this month.

Peter Harbison, managing director of the Centre for Asia Pacific Aviation, believes SIA has put forward a strong enough case to be given a chance to compete with Qantas.

“I would suspect the betting is on giving token, very limited access to Singapore Airlines, which would allow the government to say that it has maintained a fairly liberal stance whilst making everyone more or less equally unhappy,” Harbison said.

SIA says the government hasn’t signalled its intentions.

“As far as we are aware at this stage it is still due to go to cabinet,” said spokeswoman Kate Pratley.

“We stand by our position that the trans-Pacific route is under serviced and that if there were to be more carriers coming on board – i.e. Singapore Airlines – that consumers will be the winners,” she added.

“We are pro-competition, it breeds more choices and more flexibility for consumers.”

SIA posted a smaller-than-expected drop in quarterly profits, as the sting of high fuel costs led to its fourth straight quarter of declining earnings.

The state-controlled airline, facing soaring fuel costs that outweighed rising demand for flights, said it earned net profit of USD$243 million in its fiscal third quarter, down 15% from a year ago.

Phil Davies

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