VICTORIA: OPEN US ROUTE
7 July 2008
Scott Rochfort
QANTAS' stranglehold on the Australia-US route faces a fresh challenge, after the Victorian Government called on its federal counterpart to grant Singapore Airlines and other "third country" airlines access to the lucrative route.
Despite an open skies treaty signed between Australia and the US this year, which has paved the way for Virgin Blue offshoot V Australia's entry on the route this December, the Victorian Government has argued not enough has been done to open up one of the world's least competitive long-haul air routes.
In its submission to Transport Minister Anthony Albanese's National Aviation Policy white paper, the Victorian Government said: "Despite the recent open skies agreement concluded between the Australian and US governments, the establishment of new services to Australia are not a high commercial priority for most United States airlines, which are largely focused on other regions (such as North Asia and the Atlantic)."
The State Government argued the new agreement had not yet resulted in any new flights coming into Melbourne, noting that V Australia had so far only committed itself to the Brisbane and Sydney to Los Angeles routes.
Victoria said the extra services would only "further increase the diversion of traffic through Sydney", where 37% of Victorian passengers have to travel through to fly to the US.
"The Victorian Government believes it would now be appropriate for the Commonwealth Government to set a timetable to allow Singapore Airlines' (or other third country carriers) entry to the Pacific route," the submission said.
Singapore Airlines and Air Canada had their requests to fly the route rejected in February last year, when former transport minister Warren Truss ruled it was better to give V Australia time to establish itself. Qantas controls about 75% of the capacity on the route. United Airlines controls the balance.
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