Possible Open Skies Policy Generates Angst

We reported earlier this week that Singapore Airlines and the Australian Government were meeting to discuss Singapore Airlines' gaining greater access to the Australian market, including access to the Sydney - Los Angeles route. The meetings have generated considerable angst with some government politicians already urging the Transport Minister (and deputy Prime Minister) not to water down the duopoly that Qantas shares with United Airlines on the lucrative Pacific route. The clamor has been significant and flies in the face of reality - that greater competition (and 3 airlines rather than 2 is hardly significant competition or even choice) should be of benefit to the flying public if the airlines concerned all strive to gain market share and retain loyal customers.

The situation at present is ludicrous, with Qantas moving hundreds of jobs off-shore, yet claiming that entry by Singapore Airlines will reduce their employee numbers. So too the argument that Singapore Airlines is not a discounter. If that is the case, then the other 2 airlines would surely be able to gain and retain market share with ease.

A decision will not be made quickly and will require the support of the entire Cabinet. However, there is little doubt that the current restrictive arrangements can not remain. As always - we live in interesting times.

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David
editor@agarcarlyon.com