New Zealand and Singapore have signed what they call the 'world's most open aviation deal', while China has agreed to relax two of its bilaterals.

The New Zealand/Singapore treaty offers no route restrictions between the two countries, unfettered fifth freedom rights and no foreign ownership restrictions.

While Singapore Airlines may not be on the verge of buying out Air New Zealand, or vice versa, the treaty is allegedly the first not to include foreign ownership rules.

The pact follows SIA's growing links with both Air New Zealand and its Australian partner, Ansett International, over the last 12 months. Both countries have already penned open skies pacts with the US, creating a unique tripartite liberal regime.

In a separate development, China is picking up the pace in its efforts to expand air services with regional neighbours. China has signed memoranda of understanding with Malaysia and the Philippines which will lift capacity entitlements and allow for multiple designation.

The MoUs indicate that Beijing is beginning to ease restrictions on growth as it gains confidence in its own carriers' ability to expand their regional networks. Phased frequency increases will enable Malaysia Airlines and any other Malaysian carriers to operate a total 64 flights a week to six Chinese points. Chinese airlines will be able to operate a similar number of flights into three points in Malaysia.

Philippine carriers will be able to add Guangzhou and Shenzhen to the existing destinations of Beijing, Shanghai and Xiamen. In return, Chinese airlines receive landing rights in Manila and one additional point.

Tom Ballantyne

Source: Airline Business