KEY POINTS:
Singapore Airlines will continue to campaign for a right to share the lucrative trans-Pacific route to the US from Australia with Qantas, an airline senior executive said today.
Singapore Airlines vice-president for partnerships TK Mun said the airline is keeping a close eye on the route despite its application to fly being rejected by the Australian government this year.
"The subject is very much alive; nothing is forever," Mr Mun told AAP.
He was speaking at a gathering of the Star Alliance group of airlines which this week welcomed its newest member, Turkish Airlines, in Istanbul.
"We need to find the right time and right circumstances and to be able to convince all stakeholders that we have a role to play on the route," Mr Mun said.
He said there was a lot of consumer interest in Singapore winning access to the route, which would provide customers with more choices and contribute to tourism.
He said Singapore Airlines was not looking to take a stake in the private equity-led takeover attempt on Qantas, where a consortium that includes Macquarie Bank and Texas Pacific Group are looking to take 49 per cent ownership of the airline.
"TPG and the other interested parties will probably pick up that 49 per cent," Mr Mun said.
He said the heavily regulated aviation industry is one of the last to experience the leveraged buy-outs of the giant private equity players.
"We are watching very closely what is happening and this is in the initial stages of development so we do not know yet how things will develop and what will be the Australian government's position," Mr Mun said.
"But we are convinced that you will continue to see the kangaroo on the plane because the national carrier must be in the hands of, controlled and effectively owned by Australians."
He said in the airline industry there is not a free play of market forces that can be found in other industries such as banking, insurance and telecommunications.
"Other industries do allow market forces to decide what is best but under the current framework that has been in place for 60 years in the aviation industry this is not permissible," Mr Mun said.
- AAP
