Australia to Consider Opening Transpacific Air Route

[Saj_A]

http://www.bloomberg.com/apps/news?p...d=ah_6jkx0rnFo

Oct. 30 (Bloomberg) -- Australia will consider allowing more carriers to compete with Qantas Airways Ltd. on flights to the U.S., a market that Singapore Airlines Ltd. has been seeking to enter for at least two years.

The government may open up the route once Virgin Blue Holdings Ltd. starts operating on the sector, Transport Minister Anthony Albanese said in Singapore today. Virgin Blue's V Australia will begin long-haul flights in February after a strike at Boeing Co. forced a delay.

``Our position is to get the second carrier that will provide competition to Qantas directly on that route, and once that occurs, further liberalization can be considered,'' Albanese said today.

Opening the transpacific route may enable Singapore Air, Asia's biggest carrier by market value, to challenge the dominance of Qantas and United Air Lines Inc. on the sector. Qantas charged 38 percent more per kilometer for Sydney-Los Angeles flights than on the more competitive route to London, according to a 2006 report by Canberra-based consultants Econtech for Singapore Air.

Qantas Services

Qantas, Australia's biggest airline, flies 43 services a week to the continental U.S. as well as to Honolulu. Jetstar Airways Pte, Qantas's budget carrier unit, flies five services a week to Hawaii, its only U.S. destination. United operates 14 services a week between the two countries.

Australia in 2006 rejected a Singapore Air request to fly the route. Singapore's government had asked Australia's government to reconsider the decision.

``We wanted to make sure there was competition between more than one Australia-based airline before we made the next step of opening up fully the pacific route,'' Albanese said in an interview with Bloomberg Television. ``Australia's liberal attitude toward aviation stacks up well with the rest of the world.''

Cant see QF being too enthusiastic about this.

Imagine, QF/SQ A380's and VAustralia 77W's competing on the same sector...

[Rhys Xanthis]

Originally Posted by Saj_A

Cant see QF being too enthusiastic about this.

Imagine, QF/SQ A380's and VAustralia 77W's competing on the same sector...

They wouldn't be happy at all. Charging 38% more per km is an interesting stat. I also remember someone stating that a large percentage of QF's profit is made from the transpacific sectors - anyone able to provide the actual figure, ive forgotten.

You could almost guarentee prices would fall pretty significantly with A380's from QF,SQ and VA 777, great for the consumer. Once thats all settled in it wouldnt be too difficult to see some others moving in as well onto the route.

[Andrew M]

Lots of consideration.......... wake me when it actually happens.