Qantas chief attacks Singapore setup

By DANIEL RIORDAN and VERNON SMALL

Qantas managing director Geoff Dixon has taken a swipe at Singapore Airlines' Government ownership.

Mr Dixon met Finance Minister Michael Cullen yesterday to argue Qantas' case for "partnership" with Air New Zealand before Singapore Airlines (SIA) increases its stake in the national carrier.

A combative Mr Dixon later implied that SIA's ownership could pose problems for New Zealand. The Singapore Government owns 57 per cent of SIA.

Mr Dixon said he was uneasy at the market imbalance that he predicted would result if the SIA proposal went ahead.

"If there was a grouping that included Air NZ, SIA, Ansett Australia and Ansett International, that would skew the playing field in this part of the world very much in favour of that grouping and Qantas would have to try and do something else.

"We find it very strange that an airline owned by a Government could possibly end up with such a dominant position," Mr Dixon said.

"It's never happened anywhere in the world, so we don't see why it should happen here.

"You have a certain group of airlines that have to play by the rules of the total open market place and you have a group of airlines that are owned by Governments and are arms of their Governments' policies, be it trade or tourism. Singapore is one of them ...

"I'm not saying that there's anything wrong particularly with Singapore money - certainly not - but we should be aware that it is Government money."

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