20-Jul-2011 10:37 AM

SIA to seek trans-Pacific permission in return for Qantas offshoot approval: AirAsia X

Qantas’ plans to launch a Singapore-based subsidiary, which is expected to target premium travel markets, is likely to depend upon the Australia allowing Singapore Airlines to launch trans-Pacific services, according to the CEO of long-haul low-cost carrier AirAsia X Azran Osman-Rani (Sydney Morning Herald, 20-Jul-2011). Mr Osman-Rani said Australia must further liberalise trans-Pacific routes, which were Qantas’ one-time most lucrative, before Singapore authorities allow Qantas to set up a premium airline in the city state. Singapore is likely to leverage Jetstar and Qantas’ strong bases in Singapore as grounds for its moves into Australia. Mr Osman-Rani said the world's fastest-growing aviation market presented large opportunities for premium airlines such as Qantas. Qantas will announce its firm plans, expected to contain a “four-pronged strategy”, at a press conference on 24-Aug-2011.

AirAsia X: ''It would seem difficult, from a regulatory point of view, to hold back Singapore Airlines from flying on the trans-Pacific and at the same time for the Singapore government to allow Qantas to base themselves out of Singapore,'' Azran Osman-Rani, CEO. Source: Sydney Morning Herald, 20-Jul-2011.

AirAsia X: ''When you look at the significant under penetration of international aviation [and] the growth of the markets here [in Asia], there is a lot of upside,'' Azran Osman-Rani, CEO. Source: Sydney Morning Herald, 20-Jul-2011.