SINGAPORE : Singapore and Australia have moved one step closer
to an open skies agreement.
In what he called "a significant move," Transport Minister Yeo
Cheow Tong says both sides have agreed to hammer out a roadmap to
start on this by mid-year.
The agreement came during Mr Yeo's talks with his counterpart in
Canberra, John Anderson.
A full open skies agreement is something Singapore has been looking
at with Australia since they signed an expanded air services
agreement in 2003.
Full open skies mean Singapore Airlines gets access to the
lucrative trans-Pacific route, picking up passengers from Australia
and flying them on to the US.
Currently, Australian passengers to the US fly either United
Airlines or Qantas, which, at 75 percent, has the lion's share of
the market.
So lucrative is the route that 15 percent of Qantas' profits come
from it.
And Singapore Airlines wants a piece of the pie.
Analysts say a lot hinges on whether Australia can also get more
business elsewhere, notably greater access to markets in
Europe.
Australia's Transport Minister Anderson goes to Europe this weekend
for talks and says he will contact Mr Yeo when he returns.
But Mr Yeo stressed the two issues should not be linked.
Said Mr Yeo, "I've stressed to him there is no linkage between what
he can get from the Europeans and us getting fifth freedom
rights."
Another possible obstacle is that SIA gets delivery of its A-380
jumbos six months before Qantas, enabling it to pick up more
passengers.
Mr Yeo said the timing of this could be negotiated.
And while he has asked for SIA's first trans-Pacific flight to take
place within 12 months, he says negotiations for a full open skies
agreement will take time.
But progress has been made.
Mr Yeo said, "I think it is very significant. This is the first
time that we have agreed to a deadline for coming with this
well-defined map. At least we managed to get what we want, which is
to get the process going."
He added, "In terms of when that end point will be, in terms of
when the OSA will be completed -- two years or three years? That
will be part of the road map that the two sides will agree
upon."
As for concerns that Qantas will lose out, Mr Yeo said experience
has shown competition will only grow the market for all. - CNA