Mr Anderson last night told the Australian he had not made a final decision on a proposal by Singapore Airlines to fly the trans-Pacific route, which is dominated by Qantas and United Airlines.

"I have heard Singapore Airlines' case, but I have not made a decision yet," Mr Anderson said.

But he said increasing competition in aviation "in a way which allows Qantas to grow" could deliver a "win-win" situation for the airlines and consumers.

Mr Anderson added that securing better access for Qantas to aviation hubs in Asia and Europe would be critical to allowing any further liberalisation to proceed.

But Qantas would not win a better deal on foreign investment if the trans-Pacific route were liberalised. "The Government will not revisit foreign ownership," Mr Anderson said.

He said the current threshold for foreign investment in the airline would not be revisited by the Howard Government as Qantas had sufficient access to foreign capital following British Airway's decision to sell its stake.

Singapore Airlines has won preliminary support from other cabinet ministers before a final decision on the proposal later this year, with Industry Minister Ian Macfarlane arguing there would be merit in opening up the route, providing Qantas was not disadvantaged.

Tourism Minister Fran Bailey is also a supporter of Singapore Airlines' aspirations.

"I'm interested in getting more people to Australia. What we are talking about is growing the market," Ms Bailey said yesterday.

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