Singapore Airlines, Asia's most profitable airline, says the Australian Government is taking too long to decide whether to grant it permission to fly between Sydney and the US, a move opposed by Qantas.
The Governments of Singapore and Australia are holding talks on granting Singapore Airlines the right to fly
the route.
Only Qantas, Australia's biggest airline, and United Airlines, a unit of Chicago-based UAL Corp, fly directly between the United States and Australia.
"A year ago we were told there would be a 12 to 18 months' possibility from March 2004, now it's March 2005," chief executive Chew Choon Seng, 58, said in Sydney yesterday before travelling to Canberra to meet Transport Minister John Anderson. "I hope we will get a final definition this time."
Singapore Airlines wants access to more international routes as it faces increased competition from low-cost carriers, including Qantas' subsidiary Jetstar Asia.
Qantas chief executive Geoff Dixon says opening the US route, which accounts for about 10 per cent of annual profit, could cut as much as A$44 million ($47 million) from annual earnings.
Chew said Anderson, who is also Australia's Deputy Prime Minister, had indicated that a decision about whether permission would be granted would be taken "somewhere in the region of 12 to 18 months".
Singapore and Australia have set up a joint working group to draw an access 'roadmap'," he said. "Things are moving along the right direction."
Anderson said this month Australia would not consider for at least four months whether to grant Singapore Air access to the route.
He is seeking greater access for Qantas to fly from Singapore to European destinations including Paris in return for letting Singapore Airlines fly between the US and Australia, the Herald Sun newspaper reported.
"That's something which is actually not up to the Singapore, but to the French, Government," Peter Harbison, managing director of the Centre for Asia-Pacific Aviation said. "Qantas effectively uses Singapore as a hub."
- BLOOMBERG
