Australia's Qantas Airways is holding talks with rival Singapore Airlines (SIA) on ways the two carriers may work together as they introduce Airbus A380s into their fleets from 2006, writes Nicholas Ionides.

"We're just talking to them about how perhaps we can introduce this aircraft and do some things together that will save both on costs, "said Qantas chief executive Geoff Dixon in a television interview.

Oneworld alliance member Qantas and Star Alliance carrier SIA have held discussions about the possibility of forging a partnership on training and maintenance for the A380.

SIA is to be the first operator of the A380-800 passenger variant early in April 2006. It has 10 aircraft on firm order, plus 15 options. Qantas has 12 aircraft on firm order for introduction from November 2006, plus 10 options.

Meanwhile, the Australian Competition and Consumer Commission (ACCC) has approved continuation of the joint air services agreement (JSA) between British Airways and Qantas on the "kangaroo route" between Australia and Europe.

The JSA, which has been in force since 1995 and was last re-approved in 2000, lets airlines co-ordinate scheduling, marketing, sales, freight, pricing and customer service activities.

Virgin Atlantic and Virgin Blue opposed the application, but the ACCC found that despite a "substantial lessening" of competition in the business- class market on the route, this was outweighed by strong price competition for leisure travellers.

The partners had sought indefinite authorisation for the alliance, but the ACCC limited its approval to five years.

ADDITIONAL REPORTING BY EMMA KELLY

Source: Flight International