Pacific island nations are finding it no easier than their Caribbean counterparts to liberalise aviation between them. The Solomon Islands has become the fifth nation to sign the Pacific Islands Air Services Agreement (PIASA), but it is the first to sign in two years and the accord still needs one more country, a minimum of six, before it can take effect.
PIASA would grant fifth and sixth freedoms between signatory nations and give their airlines more access to capital by relaxing foreign ownership caps. It is a product of the Pacific Islands Forum, a 16-nation group of independent Pacific islands plus Australia and New Zealand. Australia has been a vocal advocate for more co-operation in island aviation.
The five nations that have signed PIASA to date are the Cook Islands, Nauru, Tonga, Vanuatu and the Solomon Islands.
The first four signed when PIASA opened for signature in August 2003. Since then, no other nation has accepted the accord until the Solomon Islands aviation minister signed it in May. Most other governments have been silent about the pact, but Fiji’s civil aviation director has criticised it. He argues that the benefits of open skies are overstated, and such accords generally favour larger nations.
With Fiji opting out and other Pacific islands ignoring PIASA, its future does not look bright. Most of the nations that have signed are small, even by Pacific standards. Even if Fiji were not one of the larger and more influential countries in the region, it would be difficult to implement PIASA without Fiji, given its central location.
The Association of Caribbean States is also seeking signatures so that a similar air services accord can take effect in its region. The Caribbean agreement, which will be reviewed at a summit in late July in Panama, has also languished for the past two years.
Source: Airline Business
