Aeropolitics have taken a new twist for Australia following the UK's agreement to liberalise flights on the Kangaroo route. The new bilateral removes all limits on the number of flights between the UK and Australia, and allows those flights via any intermediate point except China and the USA. This replaces a more restrictive bilateral that limited airlines from each country to 28 flights per week. That quota is fully used by Qantas, British Airways, and Virgin Atlantic.
The new bilateral was widely anticipated following a similar deal between New Zealand and the UK last year, but it still will force the Australian government to rethink its position with several other countries. Earlier this year Australia rejected a request by Singapore to allow Singapore Airlines (SIA) to operate beyond Australia to the USA in exchange for giving Qantas unlimited rights beyond Singapore to Europe. One of the reasons it cited was that SIA enjoyed more European rights than Qantas, so that such an agreement would be lopsided.
The same issue has re-emerged with the campaign by Emirates to increase flights to Australia. Government officials have stressed that Emirates should be limited until Qantas gains more rights into Europe. Hence, Australia's reluctance to grant sixth freedom carriers like SIA or Emirates more rights to or beyond Australia has been justified by restrictions on Qantas's rights to the UK or Germany. The new UK-Australia deal has already prompted Singapore to renew demands for a more liberal accord with Australia. ■
Source: Airline Business
