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Tue, Feb 04, 2003

United's Route Loss May be Qantas' Gain

United's next pullback may be good news for Qantas. The rumor mill is running full-speed with stories that UAL may have to soon terminate leases on its 747-400s, eminently-saleable aircraft, as lessors get tired of not being paid.

If rumors hold up, UAL may soon give up its reputed 25% market share of air travel between the US and Australia.

Qantas is poised to reap the gain; but that very success, if it comes, may unleash regulators, who will see any progress Qantas makes as being "uncompetitive," and thus start again the talks of an "open skies" arrangement -- which would allow Singapore Air Lines a shot at Sydney, Melbourne, and the rest of the market.

FMI: www.qantas.com

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