Asia-Pacific countries are continuing to strike a host of liberal air services agreements, including some 'open skies' cargo accords, both between each other and with the USA.
Australia and Singapore agreed in September on a 'significantly liberalised' new air services pact that allows unrestricted flight frequencies between the two countries. Under the terms of the memorandum, airlines from both sides will be able to fly between Singapore and any point in Australia, as well as to most intermediate points between the two countries without restriction.
The new pact takes immediate effect while the two sides also agreed that 'further discussions about additional liberalisation measures will be held when there is greater stability in the global aviation environment'.
The deal is not a full open skies accord, however, which had been under discussion for some time and which would have allowed unrestricted services beyond the two countries. Qantas Airways opposed a broad open skies deal, in part because it would have allowed Singapore Airlines (SIA) to operate competing services between Australia and the USA.
But the agreement is progressive, and is only Australia's second with another state that allows for unlimited services to and from the country. The other is with New Zealand.
SIA says it 'welcomes the first steps towards liberalising the Australia-Singapore air services agreement'. The carrier adds that it 'remains committed to an open skies agreement between Australia and Singapore and will continue to articulate the benefits it will bring for consumers', adding that 'it is clear that governments recognise that liberalisation will occur'.
Qantas, in saying it too is pleased with the agreement, says it welcomes the two governments' statement that further liberalisation discussions would only be held when the global aviation environment stabilises.
While Singapore failed to secure an open skies accord with Australia, it reached an agreement for cargo with Sri Lanka. That arrangement also allows for unrestricted passenger services to be flown between the two countries.
Thailand and the USA have also reached an open skies arrangement covering cargo services. A 'working agreement' was reached in September and is due to be firmed up shortly. Although details are scant, US express freight operator UPS says the new deal eliminates restrictions on how often carriers can fly, the aircraft they can use and the prices they can charge.
In another development, the Chinese government is considering an open skies air services policy for the booming commercial city of Shanghai that could take effect next year. China has been steadily liberalising and recently introduced an open skies regime for the southern island province of Hainan. That agreement covers both passenger and cargo services.
An open skies policy for Shanghai would probably not immediately cover passenger services, airlines say, but foreign cargo carriers would be able to operate services beyond the city to other countries.
Early this year SIA Cargo, the cargo subsidiary of Singapore Airlines, became the first carrier to be awarded fifth freedom rights to operate services beyond China. It was seen as a test case and the airline now operates Singapore-Xiamen-Nanjing-Chicago freighter services.
NICHOLAS IONIDES SINGAPORE
Source: Airline Business
