S'pore says open skies only a 'half step'

  AGE, Melbourne
February 15, 2008
SINGAPORE


THE open skies agreement reached between Australia and the United States today is only "half a step", Singapore Airlines says.

The state-owned carrier has long argued for access to the lucrative trans-Pacific route and today's open skies agreement stops short of granting that access.

Currently only Australia's Qantas and America's United Airlines fly the lucrative trans-Pacific route, with Qantas operating 48 weekly services and United 14.

Under the new agreement, Qantas and subsiduary Jetstar are likely to increase US flights, with rival Virgin Blue given the all-clear to launch ten weekly flights to North America by November through its offshoot V Australia.

"The agreement to liberalise for Australian and American carriers on the US route is long overdue," the vice president of Singapore Airlines public affairs Stephen Forshaw said in a statement.

"But it is only half a step."

Mr Forshaw said the decision would stop any worries about the new Labor government's commitment to free trade.

"Competing in a globalised economy doesn't mean consumers should lose by protecting the legacy practices of home-grown companies out of some loose definition of national interest," Mr Forshaw said.

"As we have consistently argued, it is a mistake to confuse national interest with national carriers' interests."

Singapore would, Mr Forshaw said, keep calling for further liberalisation

"We are patient," he said.

"All over the world, these changes are occurring and consumers are benefiting.

"Australia should be no different."

AAP

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