SInGAPORE_AIR
Posts: 11621
Joined: Mon Nov 13, 2000 4:06 am

SIA In "Advanced Stage" Of Planning Aussie Airline

Wed Jul 09, 2003 7:20 am

Singapore Airlines Pte Limited - A member of Star Alliance - is in the "advanced stages" of planning a third domestic Australian airline.

Dr. Cheong Choong Kong - former Chief Executive Officer and Deputy Chairman of the prestigious airline - said that, "management will want to have the first word to reveal their plans, but the study has started and it is at quite an advanced stage."

Asked on whether another airline in Australia was sustainable, he said, "I think so - it's a matter of branding and finding your own niche and understanding your competition."

He added that he felt more optimistic about the Australian aviation market six to twelve months ago, "when things were getting somewhere but ... there seems to be a pause, probably because of the uncertainty related to the Qantas-Air New Zealand union."

Now chairman of Overseas Chinese Banking Corporation (OCBC), Dr. Cheong said that joining another airline would be, "unthinkable."
"I am now into banking, but I think I will always be an airline man at heart," he told today's Tourism Task Force forum. "Like a Bundy and coke, it's hard to get it out of your blood."

The Tourism Task Force International Leadership Award recognises the good Doctor's contribution to the growth of Australian tourism and relations between the country and Singapore.

"Clearly Singapore Airlines has identified Australia as a market with a lot of potential because Singapore effectively doesn't have its own domestic market and it is keen to tap into Australia, which is quite a lucrative market," said Jason Smith of Smith Barney. He estimates that during the first few years of srevice, such an airline would incurr losses of between A$200 and A$400 million / US$135 400 000 and US$270 800 000. In addition, an agreement with Qantas to provide Singapore Airlines passengers with cheaper domestic fares could vanish.

"You would have to question whether they would want to set up in Australia and compete with a well established and competitive carrier such as Qantas and where they would position themselves against the budget carrier Virgin Blue," he added.

More information at the Asia Pulse / Yahoo website, the TravelBiz.Com.Au website and the Sydney Morning Herald website



Information was gathered from the above hyperlinked webpages. Full information can be viewed by clicking the above hyperlinked webpages. Information was rephrased and not copied and pasted. Currency conversion from Australian Dollars to U.S.A. Dollars courtesy of the Singaporeair.com Currency Converter

[Edited 2003-07-09 00:20:59]

[Edited 2003-07-09 00:24:08]

[Edited 2003-07-09 00:29:55]
Anyone can fly, only the best Soar.
 
pilottim747
Posts: 1577
Joined: Tue Jul 17, 2001 2:34 pm

RE: SIA In "Advanced Stage" Of Planning Aussie Airline

Wed Jul 09, 2003 8:35 am

They like to keep this in the news. I guess time will tell whether they will start a new airline and if it can suceed.

pilottim747
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travel
Posts: 340
Joined: Tue May 29, 2001 4:28 pm

RE: SIA In "Advanced Stage" Of Planning Aussie Airline

Wed Jul 09, 2003 2:05 pm

If there isn't anymore world disasters that is..

I will believe this once I hear a proper confirmation from SQ that it's definitely going ahead.

SQ are not stupid they are doing their homework. If it does go ahead I doubt this will be another Compass or Impulse..

I am sure QF and DJ will be using their scare tactics towards SQ in the meantime, trying to put off SQ from entering our skies..


 
rupertvander82
Posts: 400
Joined: Tue Dec 24, 2002 10:19 pm

RE: SIA In "Advanced Stage" Of Planning Aussie Airline

Wed Jul 09, 2003 11:29 pm

I think SQ's better off setting up an airline in Australia than to start a low cost airline based in Singapore.

But till the final word is out, I'm not hoping for anything.
 
CX747
Posts: 5705
Joined: Tue May 18, 1999 2:54 am

RE: SIA In "Advanced Stage" Of Planning Aussie Airline

Wed Jul 09, 2003 11:38 pm

I wonder if the airline will work in conjunction with Virgin Blue? Wouldn't it be unusual for SIA to be helping Branson with Virgin Atlantic but competing against his Virgin Blue?
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