tayser
01-01-2008, 08:28 PM
http://business.smh.com.au/us-openskies-talks-will-help-virgin/20080101-1jsd.html
US open-skies talks will help Virgin
Scott Rochfort
January 2, 2008
AUSTRALIA and the US are expected to hammer out an open- skies aviation agreement within the next six weeks, which should give Virgin Blue the all-clear to open its long-haul carrier V Australia by the end of the year.
The federal Minister for Transport, Anthony Albanese, has given approval for formal talks to start with the US in Washington next month, three months after the talks were arranged by his deposed predecessor, Mark Vaile.
Amid continuing concerns about the lack of competition on the US route, there are hopes that an open skies deal with the US could help increase capacity and challenge Qantas's dominance of the vital air link.
A spokesman from the US Department of Transport said the talks would probably be held from February 12 to 14. It is believed informal talks were held last month.
Under the current Australia-US aviation treaty, airlines from either country can only launch four weekly flights on the route in their first year of service. V Australia wants 10 weekly flights from the outset, with daily services out of Sydney. It has placed an order for six Boeing 777-300ERs with options to buy another six of the long-range jets.
However, the new Federal Government has been careful not to show its hand on whether it supports the entry of airlines from other countries, such as Singapore Airlines, on the route.
The previous federal government advanced Virgin Blue's pending entry to the route as its main reason for reneging on an undertaking to allow Singapore Airlines to fly from Australia to the US.
Air Canada was also barred from flying from Toronto via Los Angeles to Sydney, despite its Government signing an open skies deal with the US two years ago.
There is some disquiet that V Australia's entry on the route will not address the lack of capacity into Melbourne and Brisbane. However, it is understood Qantas could counter this through the planned deployment of its first giant Airbus A380 between Melbourne and Los Angeles this year.
Qantas, Virgin Blue and state government tourism authorities have been invited to make submissions before the Australia-US open skies talks.
It is understood Qantas wants one part of the existing treaty, which limits the capacity of Australian carriers on the route to 80 per cent, scuttled.
Qantas, whose only competitor on the route is United, already has about 77 per cent of the route's capacity, from which it generates an estimated 20 per cent of its profits. Qantas operates 48 flights a week, and United runs 14 flights a week to Australia.
It is unclear what the US wants from the talks. But there has been speculation that some US carriers want rights to fly to Australia via other points in Asia, such as Tokyo.
The biggest complaint about the current arrangement - viewed as the most heavily protected long-haul air link in the world - is that the lack of airline seats on the route is harming Australia's tourist industry, one of the country's biggest export earners.
Despite lobbying vigorously to block Singapore Air's attempts to fly the trans-Pacific route, Qantas has argued that plenty of US airlines have the opportunity.
Virgin Blue has named its international carrier V Australia because Singapore Airlines, the 49 per cent owner of its sister airline Virgin Atlantic, has barred the Australian operation from using the trademark.
__________________
how convenient for QantARSE that US airlines are not in the same position as them to start proper Australian services. f**king protectionism shits me, especially when it costs more for me to fly MEL-LAX direct compared to MEL-SIN/BKK/HKG/KUL/DXB-LHR when London's a lot further away.
Who would want to operate via North Asia? United? North West?
Delta and American have fairly poor showings in Asia, no?
Bring it on SQ.
US open-skies talks will help Virgin
Scott Rochfort
January 2, 2008
AUSTRALIA and the US are expected to hammer out an open- skies aviation agreement within the next six weeks, which should give Virgin Blue the all-clear to open its long-haul carrier V Australia by the end of the year.
The federal Minister for Transport, Anthony Albanese, has given approval for formal talks to start with the US in Washington next month, three months after the talks were arranged by his deposed predecessor, Mark Vaile.
Amid continuing concerns about the lack of competition on the US route, there are hopes that an open skies deal with the US could help increase capacity and challenge Qantas's dominance of the vital air link.
A spokesman from the US Department of Transport said the talks would probably be held from February 12 to 14. It is believed informal talks were held last month.
Under the current Australia-US aviation treaty, airlines from either country can only launch four weekly flights on the route in their first year of service. V Australia wants 10 weekly flights from the outset, with daily services out of Sydney. It has placed an order for six Boeing 777-300ERs with options to buy another six of the long-range jets.
However, the new Federal Government has been careful not to show its hand on whether it supports the entry of airlines from other countries, such as Singapore Airlines, on the route.
The previous federal government advanced Virgin Blue's pending entry to the route as its main reason for reneging on an undertaking to allow Singapore Airlines to fly from Australia to the US.
Air Canada was also barred from flying from Toronto via Los Angeles to Sydney, despite its Government signing an open skies deal with the US two years ago.
There is some disquiet that V Australia's entry on the route will not address the lack of capacity into Melbourne and Brisbane. However, it is understood Qantas could counter this through the planned deployment of its first giant Airbus A380 between Melbourne and Los Angeles this year.
Qantas, Virgin Blue and state government tourism authorities have been invited to make submissions before the Australia-US open skies talks.
It is understood Qantas wants one part of the existing treaty, which limits the capacity of Australian carriers on the route to 80 per cent, scuttled.
Qantas, whose only competitor on the route is United, already has about 77 per cent of the route's capacity, from which it generates an estimated 20 per cent of its profits. Qantas operates 48 flights a week, and United runs 14 flights a week to Australia.
It is unclear what the US wants from the talks. But there has been speculation that some US carriers want rights to fly to Australia via other points in Asia, such as Tokyo.
The biggest complaint about the current arrangement - viewed as the most heavily protected long-haul air link in the world - is that the lack of airline seats on the route is harming Australia's tourist industry, one of the country's biggest export earners.
Despite lobbying vigorously to block Singapore Air's attempts to fly the trans-Pacific route, Qantas has argued that plenty of US airlines have the opportunity.
Virgin Blue has named its international carrier V Australia because Singapore Airlines, the 49 per cent owner of its sister airline Virgin Atlantic, has barred the Australian operation from using the trademark.
__________________
how convenient for QantARSE that US airlines are not in the same position as them to start proper Australian services. f**king protectionism shits me, especially when it costs more for me to fly MEL-LAX direct compared to MEL-SIN/BKK/HKG/KUL/DXB-LHR when London's a lot further away.
Who would want to operate via North Asia? United? North West?
Delta and American have fairly poor showings in Asia, no?
Bring it on SQ.
