Emphatic NO again to Singapore Airlines

by Derek Yeo - SINGAPORE - 4 May 2007

"The government has reaffirmed that it has no plans to revisit the issue of rights for Singapore Airlines to operate beyond Australia to the United States for some time."

THUS Australia, through its Transport Minister Mark Vaile, turned down yet again Singapore Airlines' request to fly the lucrative Australia-US West Coast route.

The emphatic no came even as IATA* figures now suggest that demand outstripped supply for seats on Asia-Pacific travel. Singapore Airlines (SIA) insisted that the difference of nearly one per cent of demand over supply justified more competition on the route.

Australia, however, stood its ground.

Mr Vaile said Qantas' firm grip on the popular Sydney - Los Angeles sector would remain so and "off-limits" to carriers apart from the Australian national airline and Virgin Blue for a while. Qantas profits from this route as high as 20% of its total earnings. Virgin Blue, an Australian budget flyer, would help meet the demand for capacity when it starts flights to the US, according to Mr Vaile.

The rebuff is the latest in SIA's repeated attempts to gain access to the trans-Pacific route for about 10 years.

SIA should take this latest let-down in its stride. Taken positively, it speaks volumes about the Singaporean carrier's competitiveness edge among major airlines namely, Qantas, British Airways, Emirates and Cathay Pacific Airways.

One of the most popular player in the global airline industry - in both, business and tourism travel sectors - SIA has consistently achieved accolade after accolade, year after year.

It makes business sense that Qantas would rather share - or take the lion's share of - the profitable route with a minnow budget airline, and not with Singapore's flag carrier.

Or so it seems.

Over the long term, Australia, however, stands to lose more than gain on this issue. Given its drive, innovative edge and leadership in the business, SIA would be a worthy partner and benefactor of Australia in opening up the trans-Pacific route. With SIA on board, Australia would certainly cut a win-win deal.

Before that could happen, however, Singapore needs the Australians to come to their senses.

*IATA: International Air Transport Association

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