Australia's International Air Services

Executive summary

Today Australia's international air services conducted within a framework of bilateral air service agreements and arrangements between pairs of countries. Air Service Arrangements (ASAs) legislate about the terms and conditions under which airlines can fly, such as specify capacity, frequency, routes, cities, ownership provisions, safety certification, price approval, process and many other details.

But there are some system's constraints, that things make some disadvantage for airlines and also their users. Travellers and the tourism and air freight industries also get an impact. The Australian government do something to reduce or loosening the restraints but the result is not good enough. Like Unilateral ‘open skies' is not the best solution for Australia. Though the government try to remove restrictions, the safety should not be compromised. The government also should concern to safety.

Introduction

This position paper discussion about recommendation 9.3, which is the government, should seek to negotiate reciprocal ‘open skies' agreement on a bilateral, and the government also should pay attention to choose the restriction that should be remove.

Those restrictions are, capacity and frequency to, from, between and beyond Australia and the bilateral aviation partner; codesharing on each other's airlines; routes, including points of access to the Australian and the bilateral partner's markets, intermediate and beyond points; multiple designation of airlines by Australia and the bilateral partner; ownership as a basis for airline designation; and prices.

The restrictions removal should concern to consumer and the airlines too.

Removing restrictions appropriate with ‘open skies' agreements

‘Open skies' agreement is an agreement between two countries which has objective to remove restrictions on the ability of airlines to operate services. If the ‘open skies' agreement successfully executed, the airlines will be able to face greater competitive pressure, to reduce their costs, and in the end is their markets also will develop. Those restrictions are:

• Capacity and frequency

• Codesharing

• Routes

• Multiple designation

• Ownership

• Prices

Capacity and frequency

Capacity and