Qant-ass charges higher fares? Get out of here (on SingAir)!

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NOT seeing eye to eye . . . Singapore Airlines and rival Qantas.

Singapore attacks Qantas for 'inflating fares'
Steven Wardill
22feb06 LOS ANGELES-bound Australian travellers were being slugged fares inflated 38-per-cent by Qantas, according to rival Singapore Airlines.

The airline made the claim about overpriced fares yesterday as the Federal Government rejected its bid to compete with Qantas on the lucrative Australia-US "Pacific" route.

It is understood that several Liberal MPs are angry their push for "open skies" competition has been ignored.

Transport Minister Warren Truss yesterday said the Government believed there was no benefit to Australia in allowing Singapore access to the route.

"If access is negotiated in the future it will be limited and phased," he said. "We would not envisage Singapore Airlines operating on the route for some years.

Mr Truss said the decision would allow other players, such as Virgin, the opportunity to develop plans for the route.

"They don't currently have equipment capable of flying the route. They would need to develop the infrastructure to service (their flights)," he said.

Mr Truss said access to the route in the future might be granted on a case-by-case basis when it was considered in the national interest.

But Singapore Airlines public affairs manager Stephen Forshaw said delaying competition on the route was bad news for travellers.

"Any decision by the Cabinet today that continues protection of Qantas on the route is bad for consumers because it will mean that they will continue to pay high prices on the route," Mr Forshaw said.

"We've done a study that has worked out that Qantas derives 38 per cent higher fares per kilometre on the Los Angeles route than they do on the London route."

Mr Truss said the Government had also rejected a push by Qantas to relax foreign ownership rules because of the potential impact on bilateral air service agreements.

Qantas shares closed steady yesterday at $4.04.