Paul Phelan/CAIRNS
AUSTRALIA AND New Zealand have endorsed a deal creating a single aviation market (SAM), effective from 1 November. The move came 24h after aviation regulators of both nations sanctioned the A$475 million ($377 million) acquisition by Air New Zealand of a 50% stake in Ansett Holdings.
The Australian Government has ruled that, like Qantas, Ansett's international operating entity, Ansett International (AlL), is to be substantially owned and effectively controlled by Australians, to allow it to retain its status as a designated Australian international carrier.
Fifty-one per cent of AlL is to be owned by an Australian holding company, Holdco, and 49% by Ansett - Air New Zealand and News Corp. Holdco is to be 100% owned by Australian citizens.
Under the new single-market arrangements, airlines of each country gain unrestricted rights to fly anywhere within the other country, and to fly trans-Tasman services. Australian transport minister John Sharp says that the arrangements will create a market worth an estimated $5 billion and transporting more than 31 million passengers annually.
The new arrangements reverse a decision by Australia's former aviation minister Laurie Brereton, who pulled the plug on a similar deal in October 1994, just days before it was due to take effect.
Ansett New Zealand's future was in doubt following its separation from the Air New Zealand/Ansett deal. It will, immediately benefit however, as the two countries have agreed to use their discretion to approve the airline as a single air market carrier.
Air New Zealand, Ansett Australia and Qantas also meet the qualifying requirements.
The arrangement also specifies a timetable for mutual resolution of certification issues and compliance with local regulation on intra-state operations.
Source: Flight International
