Crap as you would have it

Monday June 20
SIA expresses little interest in proposed merger with Qantas

SINGAPORE : Singapore Airlines (SIA) expressed little interest on Monday in a proposed merger with Qantas that the Australian government has floated, saying it would not happen "anytime soon".

"The proposal for Qantas and Singapore Airlines to merge, as outlined by the Australian Trade Minister and welcomed by Qantas will do nothing to satisfy consumers who want more competition and choice on the Trans-Pacific route," SIA spokesman Stephen Forshaw said in a statement.

"Both companies are publicly listed companies and the matter would, therefore, be extremely complex and given the current rules governing international civil aviation and competition, industry consolidation won't happen anytime soon."

The Australian newspaper published comments on Monday by Australian Trade Minister Mark Vaile in which he backed the possibility of a merger between national carrier Qantas and arch-rival SIA.

"My view is if (a merger) could occur then the government should not rule that out," Vaile said. "Quite frankly, that is the direction that international aviation is moving in."

Vaile's comments were welcomed by Qantas, with chief financial officer Peter Gregg telling the newspaper: "We are very supportive of a regime in which more consolidation can occur.

"It's happening in Europe, it's happening in America."

The Australian government is reviewing the strict foreign investment rules governing Qantas as part of a broad review of aviation policy.

Last week the government rejected a bid by SIA to gain access to the lucrative Australia-US route, which is controlled by Qantas and United Airlines.

Qantas lobbied fiercely against letting the Singapore carrier onto the route, saying such a move would cut deeply into its profits and cost thousands of Australian jobs.

Forshaw's statement indicates SIA is still far more interested in gaining access to the Australia-US route than in merging with Qantas.

"Singapore Airlines will not be deterred from its efforts to provide competition for consumers to Qantas on the Trans-Pacific route between Australia and the USA," he said. - AFP/CNA

Right. First, the Aussies deny SIA the right to compete (read: kick their ass) with their flagship Qantas. Suddenly, they are thinking SIA would make good PARTNERS. Man, am I glad SIA saw through this hogwash because, frankly, don't you see it? The Aussies were crapping in their pants about how SIA would beat them hands down should they be allowed in on the Aust-US route and therefore they were denied. Now they, the Aussies, offer their shabby little olive branch of a possible merger when all SIA wants to do is beat them over their heads with it. Go,Singapore,go!

Yes, it's patriotic me on a bloody Monday.