Singapore Airlines (SIA) may be about to launch direct flights to Canberra, according to reports.
The Australian Financial Review has reported that the airline’s CEO Goh Choon Phong is expected to announce the new service during a visit to the Australian capital next week.
The service would run four times a week and be served by an Airbus A330, with the same aircraft continuing on to Wellington, New Zealand before flying back to Canberra and then to Singapore.
Potential growth in business to the Antipodes is unsurprising given that analysts are projecting a boost in capacity to the market by 6.5 per cent during the first six months of the year. SIA in particular has plenty of growth potential in the region, given that its seat count fell by more than six per cent last year – most of which was a result of introducing premium economy seating.
A new direct link between Singapore and Canberra, along with the fifth freedom traffic rights to operate the route between the Australian and New Zealand capitals, would allow passengers to gain access to SIA’s robust network without having to transit via Auckland, Melbourne or Sydney.
It would also provide SIA with extra footholds in both Australia and New Zealand – which in turn could be used to route traffic towards its hub in Singapore, and strengthen its position as a sixth freedom transfer airline. International full-service flights out of Wellington for instance are currently dominated by Air New Zealand and Qantas, with most services encouraging connections through Australia or other New Zealand cities. A potential entry into the market by SIA would shake up the duopoly and provide customers with greater choice.
Don't forget too that SIA is a stakeholder in Virgin Australia. The new service could pay strong dividends, particularly if the latter supports SIA’s efforts with its domestic operations in Australia.
For more information, visit singaporeair.com
Clement Huang
