Prime minister says Australia would welcome Singapore Airlines into local market

CANBERRA, Australia (AP) — Prime Minister John Howard said Friday he would welcome another carrier such as Singapore Airlines into the Australian market to increase competition.

When asked about speculation this week that Singapore Airlines was considering buying collapsed domestic carrier Ansett, Howard said that he is “a free market man.”

“If there’s another airline that can establish itself, good luck to them,” Howard told Melbourne radio station 3AW. “I want a competitive domestic aviation market.”

The prime minister added that he admires budget carrier Virgin Blue, which has carved out a strong niche in the no-frills end of the Australia market since it set up here two years ago.

Asked earlier this week about the rumors that Singapore Airlines was looking to buy Ansett, Singapore spokesman Rick Clements said the state-owned carrier was “ruling nothing in and ruling nothing out.”

Ansett, which once held more than 30 percent of Australia’s domestic airline market, collapsed late last year after a price war with Australian flag carrier Qantas Airways and newcomer Virgin Blue.

Most of Ansett’s 16,000 staff were thrown out of work, but the airline still holds considerable assets in planes and airport terminal slots.

Qantas now commands just under 80 percent of the Australian domestic market, and Virgin Blue about 18 percent.

A government transportation spokesman, Paul Chamberlain, said Friday that Singapore Airlines has not approached the government about an operator’s license. “But we are very happy to discuss this issue with them at any time,” he said.
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