SIA shut out of lucrative Sydney, Los Angeles route
By Irene Chan, 938LIVE | Posted: 02 December 2008 1622 hrs

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SINGAPORE: Singapore Airlines has been shut out of the lucrative Trans-Pacific route between Sydney in Australia and Los Angeles in the US.

Australia's Transport Ministry said the Trans-Pacific route will remain open to only Qantas Airways, US-based United Airlines and Virgin Blue's Australia-based airline, V Australia.

In its so-called Green Paper released for public consultation, the Australian government said it has no immediate plans for additional third-party access to the route at this time.

SIA and the Singapore government have been asking for rights on this route for about four years.

Two years ago, SIA has said that Qantas charged about 40 per cent more for flights from Sydney to Los Angeles than on the competitive route from Sydney to London.

SIA spokesman Stephen Forshaw said the latest Green Paper merely reiterates the Australian government's position in the past.

The Singapore carrier has long maintained that the Australian move is protectionist and that consumers will continue to be deprived of cheaper fares on the Sydney-Los Angeles route.

Mr Forshaw said SIA will continue to lobby for change which it believes will come with time.

He said: "We don't expect an outcome on the Trans-Pacific route for some years yet. We will continue to advocate the change. We'll do it slowly and methodically if that's what's required.

“In cases like these involving government to government negotiations, they take long periods of time. The outcome in the UK for example took 18 years. We've only been pressing the Australians on this issue for four years or so."

Regional managing editor for Flight International Nicholas Ionides believes SIA will eventually get to fly the route as further liberalisation takes place in the aviation industry.

He said: "I think they'll still continue pressing for the right and it'll continue lobbying behind the scene. I think one of the reasons that the Australian government is holding back right now is that it's waiting for a new airline to start up, called V Australia. They'll start operating in February, and once they are established and they're flying for a little while, the argument for Singapore Airlines to join in on that sector will be revived."

The Australian Transport Ministry's Green Paper sets out the policy that's put out for public discussion.

A white paper will confirm the final policy stance. - CNA/vm