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U.S. – Australia Relations

Australia, USA to Liberalise Aviation Arrangements

Canberra — 29 September 2007

Media release
The Hon Mark Vaile MP
Deputy Prime Minister
Minister for Transport and Regional Services
Leader of the Nationals
29 September 2007
154MV/2007

Australia's Deputy Prime Minister and Minister for Transport and Regional Services, Mark Vaile, and United States Secretary of Transportation, Mary Peters, today confirmed each country's commitment to further strengthening the aviation relationship between Australia and the United States.

They announced their intention to liberalise aviation relations by initiating bilateral discussions to develop a comprehensive, open-skies aviation agreement.

"A commitment to hold talks with the goal of bringing the benefits of open skies to the passenger market between Australia and the United States is timely in view of the close relationship between the two countries and the growing aviation market," Mr Vaile said.

The commitment to these discussions also recognises that the liberalisation of international air services is a key driver for both countries economies, providing the ability to strengthen and expand their already strong trade and tourism links.

"Further liberalised arrangements with the United States will enable airlines of each country to develop new services to meet market demand, removing Government economic restrictions and giving the consumer more travel alternatives and better fares due to increased competition," Mr Vaile said.

Both countries are strong advocates of air service liberalisation and with this shared goal clearly in mind, Minister Vaile and Secretary Peters have agreed that their respective aviation officials will meet before the end of this year to commence discussions. Agreement on the detailed terms of new air services arrangements is expected in early 2008.

A copy of the text of the Joint Statement issued by Minister Vaile and Secretary Peters is attached.

Total Australia-United States passenger air traffic for the year ended April 2007 was over 1.8 million people, making this market Australia's third largest origin/destination market. The United States was also Australia's fourth ranked source of Short Term Visitor Arrivals to Australia, accounting for 8 percent of such arrivals.

At present the only airlines to operate direct services between Australia and mainland United States are Qantas Airways and United Airlines, although a number of other airlines operate indirect services linking Australia and the United States.


ATTACHMENT

UNITED STATES AND AUSTRALIA ANNOUNCE INTENT TO AGREE ON AVIATION OPEN SKIES

Australia's Deputy Prime Minister, the Honourable Mark Vaile MP, and US Secretary of Transportation, the Honourable Mary Peters, today confirmed each country's commitment to further strengthen the aviation relationship between them, and announced their intention to liberalise aviation relations by initiating bilateral discussions to conclude a comprehensive open-skies aviation agreement.

Existing open-skies arrangements between the two countries are limited to cargo services. A commitment now to hold talks with the goal of bringing the benefits of open skies to the passenger market would permit air carriers to determine the frequency of their air services, the routes they wish to serve, and the prices they wish to charge, without governmental interference.

The commitment to these discussions recognises that the liberalisation of international air services, in parallel with the existing bilateral commitment to aviation safety, is a key driver for both countries economies, providing the ability to strengthen and expand their already strong trade and tourism links.

Both countries are strong advocates of air service liberalisation and with this shared goal clearly in mind, Mr Vaile and Ms Peters have agreed that their respective aviation officials will meet before the end of this year to commence discussions. Agreement on the detailed terms of an open-skies air services agreement is expected in early 2008.

Original document from www.ministers.dotars.gov.au.

Last update: Monday, 19 November 2007 GMT+1000

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