Open skies to Oz
October 1, 2007 by Evan Sparks
The U.S. and Australian governments will “conclude a comprehensive open-skies aviation agreement” early next year, according to The Age, opening up competition on U.S.-Australia nonstops. Qantas currently controls 75 percent of that market, and the only U.S. airline to fly nonstop to Australia is United. The article claims that the route is one of the world’s least competitive. Current rules virtually guarantee that new entrants fail: “The current Australia-US air services agreement restricts airlines on the route to four flights a week in their first year of operation — a level of frequency deemed uneconomic for airlines wanting to grab a slice of the high-yielding corporate market.” The Age’s realistically jaundiced eye also notes that incumbent carriers are looking to throw whatever self-protecting measures they can into the mix. In the meantime, hooray for more open skies.
US air pact ups Virgin Blue hopes [The Age]
