Singapore Airline wants an access to the Australia-US skies
According to Singapore Airlines the skies between the United States and Australia are not so friendly. Because of the policies of the Australian government, competition from outside airlines is not being allowed. As a result, tourism is suffering and airline industry growth is being stunted.
Focusing on the route between Australian and the United States, Singapore Airlines claims that while the Australian government promotes and encourages free trade, its regulations limiting the carriers that can offer flights along this airway corridor is hypocritical.
Currently this Australia-US route is allowed only by the Australian airline, Quantas & the American carrier United Airlines. As a result of lack of competition, there is no need for the airlines to offer cheap airline tickets, as the traveler has only 2 airlines to choose from. These two airlines have no incentive to offer cheap flights.
However, another airline, Virgin Blue, is getting ready to join Quantas and United Airlines in an Australia-US route. This addition might bring about cheap airline tickets. However, only 3 airlines are still not sufficient competition according to Singapore Airlines.
Quantas makes 50 flights a week between the United States and Australia. United Airlines makes the flight 15 times a week. In addition, 3 flights are made weekly between Honolulu & Sydney, Australia by Hawaiian Airlines.
Singapore Airlines has expressed a strong interest in a long-term relationship with the Australian government in the hopes of being a competitive player in the airline ticket market and offering cheap tickets
With a change in the Australian government recently, Singapore Airlines had hoped for a change of heart by the government and access to the very profitable United States to Australia route. However, Australian’s transport minister stated there were no recent plans to invite Singapore Airlines to take part in this flight path.
In a separate request, the Victorian government sided with Singapore Airlines and requested the national government grant their request. The competition would increase tourism and provide cheap airline tickets below the current rate. This would increase tourism. The number of requests for a hotel accommodation would increase as well as an increase in the requests for a car rental. The economy would benefit from many standpoints.
In addition, United Airlines is not eager to open the skies to other carriers and wants Australia to set a slow pace if it chooses to do so. While
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