More Flights Across the Pacific a Possibility

For those who fly the Pacific route between the US west coast and Australia and have been thwarted in obtaining a ticket because all flights are full – some relief might soon eventuate. At present only United Airlines and Qantas fly the Pacific route. This situation has been in place for many years, despite a desire by Singapore Airlines to also fly between the east coast of Australia and the west coast of the US.

Singapore Airlines is currently prevented from participating on the Pacific route as the Australian government wants to protect Qantas – even though the airline no longer has any government ownership. The Pacific route is one of Qantas’s most profitable, with flights nearly always at maximum capacity. Qantas argues that increased competition would impact on its profitability and therefore levels of staffing. The Australian tourism sector however, argues that the restricted flight numbers at present have prevented an increase in US tourism to Australia – to the benefit of competing destinations.

This week the Singapore Transport Minister is meeting with his Australian counterpart to argue the case for Singapore Airlines (a government owned entity) to be entitled to a full “open skies” policy. This would expand on the 2003 agreement that gave Qantas unrestricted rights to Singapore as a base for its global operations.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David
editor@agarcarlyon.com