Qantaspower, you obviously have some very strong opinions on this issue. We do need to clarify a few things, though....
operates from SIN
, DPS and other points in Europe and Asia, it uses fifth freedom
rights to carry passengers/cargo between these points.
carries paxs/cargo from Oz to SIN
and beyond to other points in Europe and Asia, it uses sixth freedom
When countries negotiate air services agreements, they typically negotiate fourth and fifth freedoms. Sixth freedoms are rarely negotiated because they are difficult to define and enforce. I don't think any bilateral has ever successfully incorporated the issue of sixth freedoms.
If you look at the situation strictly from what is officially negotiated, then SQ
is currently at a major disadvantage because QF
operates so many fifth freedoms ex-SIN
, in comparison, can only operate fourth freedoms between SIN
If you look at the situation from the viewpoint of all (ie negotiated and non-negotiated) freedoms, then the two carriers are pretty evenly matched.
Hopefully I am clear so far and I haven't lost anyone....
there was open skies between SIN
and Oz, and if you only looked at the officially negotiated freedoms, then the bilateral would only be considered to be a fair one if SQ
had the same amount of fifth freedoms out of Oz as QF
has out of SIN
If you considered the sixth freedoms that SQ
enjoys, then yes, open skies between the two countries could be seen as being one-sided in favor of SQ
can now enjoy BOTH fifth and sixth freedoms from Oz.
Sixth freedoms are a sticky issue. No countries have successfuly negotiated these as they are hard to enforce and restrict. In the case of SQ
is geographically suited to enjoy sixth freedoms (but not fifth), and QF
is geographically advantaged to enjoy fifth -but not sixth - freedoms out of SIN
. Right now, I would say the two countries have a rather equitable arrangement, but yes, you are not wrong is stating that this balance would be shaken up with open skies should SQ
choose to use fifth freedoms beyond Oz.
In reality, though, I don't see SQ
making too much of a dent for several reasons: (1) they are more interested in domestic traffic within Australia/NZ in order to compete more effectively on the Asia/Europe-Oz market (2) traffic to/from Oz is pretty low yield (face it, if SYD
-USA was THAT lucrative we would see many more US carriers in Oz, and we wouldn't have BA
as the only European carriers in Oz). The only reason why SQ
has been as successful as it has been in Oz is because it carries high volumes and channels them therough its SIN
hub using sixth freedoms. QF
's modus operandi is much the same, although in their case they take advantage of fifth freedoms to boost profits.
As with other carriers, SQ
has limited resources. If the UK or Japan were to offer open skies to SQ
(and bear in mind SIN
already has open skies with the US) I think you'd see SQ
channel their resources to either market in a heartbeat.