Ten years on, the answer’s still no
by Derek Yeo - Singapore - 24 Feb 2006

AFTER almost a decade of protracted negotiations, Australia has rejected Singapore Airlines’ (SIA) bid for access to trans-Pacific flights between Australia and the United States.

In his statement on the decision, Australia’s Transport Minister Warren Truss said Australia could see little or no benefit in opening up the Pacific route.

In a swift response, Singapore described the decision “extremely disappointing”. The city-state’s Ministry of Transport stated, “The fact that the open skies agreement continues to remain outstanding is indeed sad.”

The ministry went on to say, “The decision is also inconsistent with the many signals from Australian leaders in past rounds of discussions, that the issue would be resolved within a reasonable time frame.”

Singapore’s Transport Minister Yeo Cheow Tong said, “Singapore has been more than generous in facilitating the growth of Australian carriers to and beyond Singapore. It is disheartening to see that they have taken this and the warmth in our bilateral relationship for granted.” Trade links between the two countries are warm, strengthened by a Free Trade Agreement which includes an Open Skies pact.

SIA too reacted strongly. In its statement, the airline said, “It is a sign that free trade principles, open market competition and consumer choice have again been sacrificed to protect sectional interests....The Australian tourism industry and all consumers who pay high fares on the US route are again, the losers from today’s decision. The decision offers no prospect for relief from high fares.”

Qantas, Australia’s national airline, often grouses that SIA receives Singapore Government’s subsidies in its operations. Further, Qantas complained of inability to obtain traffic rights for more flights beyond Singapore to certain European cities.

On the first complaint, SIA has countered that the accusation is simply untrue, saying that its books are open for inspection. On the second, Singapore argued that it is a matter for Qantas to take up with the European countries concerned.

The Australian airline has unrestricted frequency and number of flights to and beyond Singapore under the Open Skies Agreement between both countries.