Lets put this argument into perspective shall we.
get the rights to fly from Syd-LAX
. The answer is no. Why not???
gains nothing in return for allowing this to happen. If the Singapore government objects then QF
can move its hub to Bangkok and resume services as normal.
2. UAL already flies the route for the Star Alliance. Why would SQ
want to poach UAL's traffic??? UAL's Sydney services would have to be some of the most profitable in its network so its not as if they are going to withdraw from it. Plus they have an arrangement with DJ
at this end for connecting traffic.
3. I cant see how 1 daily service by SQ
will create more competition on this route. UAL flies daily to LAX
flies 3 times daily from Sydney, Daily from Melbourne, Daily from Auckland and soon 3 times a week from Brisbane. Thats 7 daily B747 flights with approximately 2730 seats, (assuming 390 seats per aircraft). SQ
flying daily will add 390 seats, or an extra 14%, to the route. The market will grow by that in a couple of years anyway and its not as if SQ
will start a price war with QF
over the route because QF
have the capacity and frequency on their side. Besides which I'm sure once UAL comes out of bankruptcy they will be a much stronger competitior to QF
especially with the connections at LAX
that they have.
4. Will SQ
want to commit 2 747-400's to build a new route that will be marginally profitable at best, and at worst be a major source of red ink for them?? I doubt it. SQ
wont act unless they have a domestic presence here in Australia or an interline agreement with DJ
. Plus do you think UAL will be happy to take connecting traffic from an SQ
flight that is competing with them?? I dont think so.
Latham becoming Prime Minister wont automatically give SQ
rights for Syd-Lax. QF
had been on the nose with Canberra in the past but Geoff Dixon has put the relationship right. Plus with James Packer on the QF
board do you think Latham will give them rights without a huge amount of consulting with QF
??? I think not.
It's academic anyway. I'm sure the Australian government would rather see Richard Branson start services between SYD