Australia and the United States have agreed to open up trans-Pacific air routes between the two countries, prompting Australia's Qantas Airways on Friday to immediately increase its flights.
Australia's Transport Minister, Anthony Albanese, said talks with US officials in Washington had reached agreement on an open-skies pact, which could see more US carriers fly to Australia via ports in Asia, such as Tokyo. The deal helps clear the way for Australian airline Virgin Blue to begin flights to the United States on its carrier V Australia by the end of this year, edging open one of the world's most lucrative and protected long-haul routes.
But shares in Australia's flag-carrier Qantas dropped on expectations the airline will face tougher competition on the prized cross-Pacific leg, on which it has a near-monopoly. Qantas chief executive Geoff Dixon said the airline welcomed more competition and would add three extra flights from March. United Airlines is currently the only competitor to Qantas in non-stop flights to the United States. It runs 14 flights a week to Australia. Qantas operates 48 flights a week, rising now to 51, and reportedly generates as much as 20 percent of its profit from the routes. A 2006 report for Singapore Airlines said Qantas charged 38 percent more for flights from Sydney to Los Angeles than on the competitive "kangaroo route" from Sydney to London.
The open-skies deal replaces an aviation treaty between Australia and the United States under which airlines based in either country were capped at four weekly flights on the route in the first year. Virgin's V Australia, which is 62 percent owned by Toll Holdings, has asked US transport officials for 10 weekly flights, having already placed an order for six long-range Boeing 777-300ERs with options to buy another six. Australia's former conservative government rejected repeated requests from Singapore Airlines for permission to fly from Australia to the United States. The Labor government, elected in November, has not yet said if it supports the entry of Singapore Airlines on the route. Singapore Airlines wants access to new markets to help offset competition from low-cost carriers in Asia.
Geoffrey Thomas, from Air Transport World magazine, said the pact would bring a significant increase to competition on the route, but said it had previously been served by up to four US carriers. "It's a very tough market," Thomas warned. But Thomas predicted new routes would open such as Sydney-San Diego and Brisbane-Seattle. Australian travel agents predicted a price war on US routes as competition increased. Singapore Airlines estimates that opening the Pacific route to more competition could increase the number of travelers between the United States and Australia by up to 8 percent.
Airfares between two cities and nearby Airports can sometimes vary by hundreds of dollars.
To help you find the BestFares to your destination check this box and you can compare up to three (3) nearby airports from your departure city and up to three airports to your final destination. We suggest you pick the three largest nearby airports to give you the best results.
In Approximately 15 seconds, you will find the BestFares to and from your destination.
You must book a Round Trip flight for results and this product only works with in the 48 contiguous states, Alaska, and Hawaii.
This product WILL NOT work for International Routes.
Email to a Friend
Australia's Transport Minister, Anthony Albanese, said talks with US officials in Washington had reached agreement on an open-skies pact, which could see more US carriers fly to Australia via ports in Asia, such as Tokyo. The deal helps clear the way for Australian airline Virgin Blue to begin flights to the United States on its carrier V Australia by the end of this year, edging open one of the world's most lucrative and protected long-haul routes.
Eight Days, Seven Nights 5 -Star Ritz-Carlton Resort Montego Bay Jamaica, Roundtrip Airfare And All Taxes From $560 Per Person!
No Passport Required, Seven Nights 4-Star Beach Resort, Roundtrip Airfare To San Juan, and All Taxes From $419 Per Person
Cheap Discount Airfares To Sydney Or Melbourne, Australia From $803 Roundtrip Per Adult, $633 Roundtrip Per Child Through September 21, 2010! 
Cheap Discount Airfares To Cancun, Mexico Plus, 7 Nights 4 -Star Beach Hotel, and All Taxes From $374 Per Person!
Puerto Vallarta, 7 Nights 4 -Star Beach Hotel, Airfare, and All Taxes From $457 Per Person For Peak Summer Travel!
New Big Savings To Europe Sept. 1-Oct. 26, Save Up To $857 Or More Per Person By Traveling In Sept. Or Oct. Rather Than August
Receive 10 Percent Off Your Next Flight To Over 100 Destinations Worldwide. Travel Must Be Completed By October 26, 2010
Labor Day Special! Cheap Discount Airfares To Florida 3 Weekend Nights 4-Star Hotel, and All Taxes Included Prices From $177 Per Person! 
Cheap Discount Airfares To London Let Us Give You Two Cities In Europe Cheaper Than London Alone, See More Of Europe For Less!
Cheap Discount Airfares To Los Cabos Including 7 Nights, 4-Star Beach Hotel, All Taxes Included From $506 PP Plus, A $200 Resort Credit
