International implications of Air Canada’s LA-Sydney application
Friday, January 27th, 2006 - 11:26 am
Air Canada’s proposed Toronto-Los Angeles-Sydney route is drawing support in Australia. Australian carrier Qantas has been worried about competition from Singapore Airlines, which has an application before the Australian government to fly from L.A. to Sydney. Observers think Air Canada’s plans will make it easier to reject the Singapore proposal on the basis that further competition on the route wouldn’t benefit consumers.
The Sydney - L.A. route is said to account for 20% of Qantas profit. The only present competition comes from United Airlines, a partner with Air Canada in the Star Alliance. Singapore Airlines is also a Star Alliance member, while Qantas belongs to the smaller One World alliance. Qantas apparently fears Air Canada less than Singapore Airlines and is expected to argue that it shouldn’t be forced to compete against three airlines from the same alliance.
Singapore Airlines is seeking new routes to fill its giant Airbus A380 planes. (Source: Sydney Morning Herald)
For a recent update on the state of airline alliances, see Tourism Futures International.
