Government protects Qantas over US routes
By John Masanauskas
16-01-2006
From:
http://www.news.com.au/story/0,10117,17832850-2,00.html
THE Federal Government looks set to protect Qantas and deny access to Singapore Airlines on lucrative US routes.
The Herald Sun understands that Singapore's controversial execution of Melbourne drug trafficker Van Tuong Nguyen has been a factor in the air rights issue. Nguyen was hanged on December 2 despite pleas by Prime Minister John Howard.
Mr Howard, a strong supporter of Qantas, is also concerned about the prospect of job losses if Singapore is given direct flights across the Pacific.
Both airlines have been lobbying the Government, with the trans-Pacific issue to be decided in a broad review of national aviation policy.
Qantas and US carrier United Airlines are the only airlines with non-stop US flights on the routes.
Federal Cabinet is due to consider the issue next month.
Speaking in Beijing last week, Transport Minister Warren Truss hinted that Australia didn't have much room to move in negotiations.
"The countries that want access to the trans-Pacific route, particularly Singapore, don't have a lot to offer us in return, as Australia already has unlimited access to Singapore," he said.
Qantas recently said its low-cost offshoot Jetstar would eventually fly to the US, with the prospect of cheaper fares.
Virgin Blue is also keen to fly to the US and has argued that having another Australian-based carrier on the routes would be preferable to giving a foreign airline access.
Singapore Airlines spokeswoman Kate Pratley said consumers would be denied choice, flexibility and better services if US routes were not opened to more competition.
"Qantas is one of the most profitable airlines in the world yet it continues to seek protection from the Government," she said.
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No surprises with this update. Was it ever going to be any other way?