Australia and the US struck an "open skies" deal for their national carriers Friday heralding more competition on the trans-Pacific route but it was criticised for leaving out other airlines.
Australian Transport Minister Anthony Albanese said the accord would lead to more options for travellers but Singapore Airlines said it did not go far enough as it was still barred from the route. "Australian and US airlines will now be able to determine the frequency of their air services and the routes they wish to serve without government interference," Albanese said.
"This should result in greater choice for Australians travelling to and from the United States and to other destinations," the minister said after the deal lifting restrictions was announced. But Singapore Airlines remains out in the cold even though it has long lobbied for access to the Australia-US route, which until now was served only by Qantas and United Airlines.
"We remain committed to pushing for further liberalisation, but understand this is more likely at a measured pace," said Stephen Forshaw, the Singaporean airline's vice-president for public affairs.
Forshaw still welcomed the eased restrictions benefiting consumers but said they were only "half a step" towards liberalisation. But Albanese said the new centre-left government, elected in November, was determined to look after Australian airlines ahead of international competitiors. "We make no apologies for Australian interests being put first in this agreement," he said. "We want to make sure it's Australian carriers (that benefit)."
Australia's Qantas is said to earn as much as 20 percent of its profits from the Sydney-Los Angeles route. But Albanese said the agreement was an improvement on the previous arrangement, when new entrants on Australia-US routes were guaranteed only four services a week.
"We will have more competition in the market for Australian travellers through the entry of new carriers, such ass V Australia," Albanese said Qantas chief executive Geoff Dixon welcomed the move, even though the prospect of more competition led to a 2.53 percent fall in the airline's share price to 4.63 dollars (4.32 US). "It brings new opportunities for growth and competition," he said, adding it would boost Australia's aviation industry and trade and tourism with the US.