Pressure builds on Qantas
Months after it said it was singling out Australia as one of two markets it was targeting, Singapore Airlines unveiled plans to increase flights to Melbourne from three to four a day in July. The airline, which has a 10 per cent stake in Virgin Australia, will also boost flights to Adelaide from 10 to 12 a week.
The extra services will take the total number of weekly flights operated to Australia by Singapore Airlines and its subsidiary, SilkAir, to 121, up from 104 a year ago.
The latest increase in frequencies will give weight to Qantas' argument that the competition regulator should approve its planned alliance with Emirates.
The Australian Competition and Consumer Commission is set to hand down its draft decision on Thursday, and analysts expect it to tentatively approve the deal.
It comes as Air Canada considers adding a second Australian destination - most likely Melbourne - in an attempt to boost the number of Australian tourists visiting Canada.
Speaking in Sydney, Air Canada's chief executive, Calin Rovinescu, said he was eager to do more to promote Canada as a tourist destination because "we are just scratching the surface".
Air Canada has boosted flights on the Sydney-Vancouver route - the longest in its network - from seven to 10 a week to try to take advantage of the busy Christmas travel period and tap the number of Australians eager to fly to North America to ski. The extra three services began on Sunday, for six weeks, and will be used as a test to gauge whether there is sufficient demand to repeat the additional services next year.
Mr Rovinescu said the airline was eyeing a second Australian destination but conceded that it would not be possible until it began taking delivery of the first of its long-haul Boeing 787-9 Dreamliner aircraft in 2015. Alternatively, it could launch another Australian route earlier by redeploying a Boeing 777 plane.
"Melbourne would be the logical next destination," he said. "Australia remains a market to grow. We believe there are opportunities to add at least a second destination to Australia."
Air Canada is taking a leaf out of Qantas' book by launching a new low-cost airline, which will begin with five planes before building up to as many as 50.
Frequently Asked Questions about this Article…
Singapore Airlines said it will increase services to Melbourne from three to four a day in July and boost flights to Adelaide from 10 to 12 a week. Combined with its SilkAir subsidiary, the carrier will operate 121 weekly flights to Australia, up from 104 a year ago.
The extra services from Singapore Airlines add capacity and competition on key Australia routes, which the article says puts more pressure on Qantas. That increase in competition is also being used to support Qantas' argument to regulators in relation to its planned alliance with Emirates.
The Australian Competition and Consumer Commission (ACCC) is set to hand down its draft decision on Qantas' planned alliance with Emirates on Thursday. According to the article, analysts expect the regulator to tentatively approve the deal.
Yes — the article notes Singapore Airlines holds a 10 per cent stake in Virgin Australia. That investment ties Singapore Airlines more directly into the Australian market and complements its increased flight frequencies.
Air Canada has boosted Sydney–Vancouver flights from seven to 10 a week for a six-week period to test demand. The airline is also considering adding a second Australian destination — most likely Melbourne — and said a permanent expansion could follow once it takes delivery of Boeing 787-9 Dreamliners in 2015 or by redeploying a Boeing 777 earlier.
Air Canada increased the Sydney–Vancouver service to take advantage of the busy Christmas travel period and Australians keen to fly to North America to ski. The three extra weekly services began on Sunday for six weeks and will be used as a test to see if there is enough demand to repeat the services next year.
Yes. The article says Air Canada is launching a new low-cost airline that will begin with five planes and could build up to as many as 50 aircraft over time.
The article highlights growing international competition — notably more flights from Singapore Airlines and testing by Air Canada — which can affect market dynamics for Qantas, Virgin Australia and others. Investors should note the concrete developments reported: increased frequencies, Singapore Airlines' 10% stake in Virgin Australia, the upcoming ACCC draft decision on the Qantas–Emirates alliance, and Air Canada's route tests and low-cost carrier plans.
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