Singapore elbowed out of Syd-LA
tussle
The reasons are very week.
i guess Sg will fight back by reducing Qantas flying to other
countries fr Spore.
SIA provides similiar product as Qantas and UA,but SIA makes a lot
of money,while the two,u know.....
Aussie Federal Cabinet has decided not to let Singapore Airlines
fly from Sydney to Los Angeles.
Cabinet had considered arguments that letting in another airline
would boost competition and cut the cost of flights.
But the Transport Minister, Warren Truss, has announced the
Government does not believe it would be in the national
interest.
He says blocking Singapore Airlines for several years gives an
opportunity for no frills airlines such as Virgin to compete.
"Singapore Airlines of course offers a similar kind of product to
United Airlines and Qantas, the current operators of the
trans-Pacific route," he said.
"Virgin would be something completely different and certainly
2.Australia shuts Singapore Airlines out of US
routes
report:
Tuesday February 21, 2006, 5:26 pm
CANBERRA (AFP) - Australia has decided to shut Singapore Airlines
out of the lucrative trans-Pacific routes to the US while the cap
on foreign ownership of national airline Qantas will remain at 49
percent, Transport Minister Warren Truss says.
Truss said that Australia viewed an open skies policy as a national
goal and was willing to negotiate access to the Pacific route "but
only when it is in the national interest.
"In terms of the Singapore Airlines' request for access (to
Australia-US routes), the government has decided not to grant them
access at the present time," he said.
"If access is negotiated in the future, it will be limited and it
will be phased."
Qantas, which earns as much as 20 percent of its profits from its
Sydney-Los Angeles services, had argued that it would be
disadvantaged if state-backed airlines such as Singapore Airlines
were allowed to fly the route.
In announcing the completion of a lengthy government review of
aviation policy, Truss said that it found that policy settings
which have been in place since 1999 were appropriate.
He said although Qantas had lobbied hard for the government to lift
restrictions on government ownership, this would not be
granted.
"The government has decided not to amend the Qantas Sale Act in
that regard," Truss said.
