Australia’s government has again blocked a bid by Singapore Airlines (SIA) to operate beyond the country to the USA.
Transport minister Warren Truss announced the decision yesterday after the airline’s request was considered by Australia’s cabinet. SIA has for years been seeking rights to operate between Sydney and Los Angeles, but has repeatedly been blocked from doing so.
Truss said: “In terms of Singapore Airlines’ request for access to the Pacific route, the government has decided not to grant access at the present time. If access is negotiated in the future, it will be limited and phased. We would not envisage Singapore Airlines operating on the route for some years.”
Scope
He added: “There is already plenty of scope for competition on the route, with any US or New Zealand airline, along with those of a number of countries, able to commence at any time.”
Truss also says the rejection of Star Alliance carrier SIA’s bid will enable other airlines such as Australia’s Virgin Blue to consider operating between Sydney and Los Angeles. Virgin Blue has said it may consider this.
SIA has accused the Australian government of protectionism, saying it is giving Qantas Airways preferential treatment by barring others from competing on a route on which only two airlines operate. United Airlines is the other airline operating on the Sydney-Los Angeles route.
Source: Flight Daily News
