SINGAPORE : Singapore and Australia have moved one step closer to an open skies agreement.
In what he called "a significant move," Transport Minister Yeo Cheow Tong says both sides have agreed to hammer out a roadmap to start on this by mid-year.
The agreement came during Mr Yeo's talks with his counterpart in Canberra, John Anderson.
A full open skies agreement is something Singapore has been looking at with Australia since they signed an expanded air services agreement in 2003.
Full open skies mean Singapore Airlines gets access to the lucrative trans-Pacific route, picking up passengers from Australia and flying them on to the US.
Currently, Australian passengers to the US fly either United Airlines or Qantas, which, at 75 percent, has the lion's share of the market.
So lucrative is the route that 15 percent of Qantas' profits come from it.
And Singapore Airlines wants a piece of the pie.
Analysts say a lot hinges on whether Australia can also get more business elsewhere, notably greater access to markets in Europe.
Australia's Transport Minister Anderson goes to Europe this weekend for talks and says he will contact Mr Yeo when he returns.
But Mr Yeo stressed the two issues should not be linked.
Said Mr Yeo, "I've stressed to him there is no linkage between what he can get from the Europeans and us getting fifth freedom rights."
Another possible obstacle is that SIA gets delivery of its A-380 jumbos six months before Qantas, enabling it to pick up more passengers.
Mr Yeo said the timing of this could be negotiated.
And while he has asked for SIA's first trans-Pacific flight to take place within 12 months, he says negotiations for a full open skies agreement will take time.
But progress has been made.
Mr Yeo said, "I think it is very significant. This is the first time that we have agreed to a deadline for coming with this well-defined map. At least we managed to get what we want, which is to get the process going."
He added, "In terms of when that end point will be, in terms of when the OSA will be completed -- two years or three years? That will be part of the road map that the two sides will agree upon."
As for concerns that Qantas will lose out, Mr Yeo said experience has shown competition will only grow the market for all. - CNA