ozstamps

Saw the Australian Transport Minister on live TV here 5 minutes ago. He seemed VERY much in favour of approving this route. Aviation commentator on TV said this approval is inevitable within the next few months in his view. If that occurs, 747 flights could start soon after.

Qantas hates the thought of course, as they have about 35 flights a week to USA from Australia, and along with UA are the only airline now to fly direct to mainland. USA is a major cash cow for QF. UA as we know has recently added an extra LAX service from SYD.

The market is there for SQ. Given the similar price of SQ and UA and QF in J of F tickets SYD-LAX, the 99% response from a biz guy with a choice is known by all here. (Unless he has a granny fetish of course. )

And with SQ to fly A380s here ex SIN sooner than some might imagine, they could also fly SYD-NYC non-stop AFAIK on those monsters. Or SYD-ORD. Or SYD-IAD etc. And if they do get NYC rights, clearly offer a true RTW service on its own metal. The only airline to do so I believe?

The advent of these new monster airbuses will revolutionise several sections of the airline business. As the US carriers have all sat on their hands about ordering these, they'll be nervous in some markets I am sure, as they come on line from those who had the vision to order them years back. Especially if SQ offers non-stops to UA's central or eastern hubs, and thus siphoning off a lot of the essential feeder pax via LAX and SFO.

SQ will start flying this in about a year. QF has 12 or order. The "must try it" curiosity market will be huge I imagine for a couple of years. (While they still have room, and space, and features - like 747s did soon after their introduction! i.e. before they take most of that away and add another 100 coach seats - from 500 to 600 pax! )


Australia, Singapore to discuss SIA access to Australia-U.S. routes

SYDNEY (AFP) — Transport ministers from Australia and Singapore will meet next month to discuss opening routes from Australia to the United States to Singapore Airlines, a move hotly contested by Qantas, a government spokesman said Tuesday.

A spokesman for Transport Minister John Anderson said the talks with his Singapore counterpart Yeo Cheow Tong would take place in mid-February in Canberra and had been called at Singapore's request.

The meeting comes amid talk of cut-throat competition between the two carriers after Qantas set up a low-cost Asian airline based in Singapore, Jetstar Asia, putting it in direct competition with the Singapore flag carrier in its home market.

Flights between Australia and the United States are currently restricted to airlines from the two countries concerned and are among Qantas' most profitable routes.

The spokesman said the government was happy to talk to the Singaporeans about the issue and had some points of its own it wished to raise.

"The government will make its mind up after that and won't be pressured into making a decision," the spokesman said.

Australia would also be raising issues about limited access to the European market out of Singapore, he said.

Qantas has argued that it needs protection amid the turbulent world airline market after the attacks of September 11, 2001 but Singapore Airlines argues that the airline's soaring profits suggest otherwise.

The Australian flag carrier reported a record net profit of 648.4 million Australian dollars (460.4 million U.S.) for the year to June 2004.

http://www.usatoday.com/travel/news/...pore-aus_x.htm

etc

BenjaminNYC

No BIS miles! No BIS miles!

But yes, I agree. This is a threat to UA. We might actually see UA C/F prices fall in the market since they are non-competative. Or... GASP... they might IMPROVE service! ...nah

dhammer53

Good for UA fliers

More award seats.

UA_Flyer

On top of the potential SQ competition, Qantas has announced it will deploy its first four A380 on some of its 17 weekly LAX and Sydney/Melbourne flights.

UA will probably still use its aging 744 fleet and prison matrons.

iloveipods

not if there is no UA to fly on!

UNITED959

^ Great to start my day off w/ a laugh!!

anc-ord772

This will force UA to upgrade the 744 cabin and put PTV in Y ^

AndrewSC

I guess this is good news for me. Should reduce prices for trips home, or improve service on said trips.

Never liked Qantas much, but I wouldn't want to see them go under. I wouldn't expect this would hurt them much though.

Morrissey

You're assuming that UA will continue to fly to Australia...

CoMooter

SQ starts flying this route

J/F - order of preference is SQ, QF, UA
Y - order of preference is SQ, UA, QF

This is not good news for either UA or QF on many fronts. Look for OZ (and NZ) to become a little more reasonable to fly to - either up front or in back.

Its about time - also look for QF to get a little less stingy on their FF program.

BenjaminNYC

Why would you choose SQ over UA in Y? UA has E+. SQ has tight 31" pitch, unless they do Exec Economy.

transpac

UA seems to be focusing on Asia, and China especially, as this seems to be more of a business destination. Presumably business destinations with growing economies are a good target? Australia seems like more of a leisure/vacation market, and I'm not sure the economy/population is growing all that much. UA could just drop the route(s) and let QF and SQ bang on each other, and maybe add more flights to China and/or restart flight(s) to India?

BenjaminNYC

Yeah, I could see UA code-share only with SQ on this route and use the 747s to expand Asian markets.

SEA_Tigger

The A380 is just pointless for the domestic US airlines, so the fact that QF and SQ will be launching them means little, since QF and SQ are the ones with massive feeder traffic between SYD, SIN, and LAX which is where these behemoths make sense.

SQ launching direct non-stop service between LAX and SYD will affect UA's ability to gain revenue premium cabin traffic on this route, but will do very little, I imagine, for the leisure vacation traveller looking for low fares. So upgrading the 744's Economy IFE is not going to happen, I expect.

SQ and QF could launch an Economy Class fare war to fill their A380s and this would put the squeeze on UA's Economy loads, as well. But with additional upgrade space for 1Ps and 2Ps on M/H fares, the bleeding might not be so bad. UA can also raise Q-W fares to recover additional revenue from upgrading 1Ks.

Not sure if UA flies 744s for their cargo lift capacity or for their passenger lift capacity, but if it's just the latter, UA could downgauge to a 777 (like they did with their New Zealand service) or just end LAX-SYD and fly everyone from SFO. Or they could just hand it over to NZ and SQ and pull out, completely.

boomerang-boy

Gotta chime in here and say that I believe that the US carriers have not "sat on their hands" about ordering the new Airbus. It's a strategic move not to order these planes. Many feel feel that flyers do not want to be on these gianormous planes. The trend here (at least what's been reported by the press) is that customers want smaller planes that serve their markets. Granted the big hubs may need these just to move people, but many think smaller markets are better served with more frequent flights on smaller (777) aircraft. I for one would rather be on a 777 than a 747 or the new 380.