Singapore's government has set up a dedicated committee to allocate air traffic rights to the city state's airlines as a new operator prepares to enter the market in the shape of ValuAir.
Until now the market has been the sole domain of state-backed Singapore Airlines (SIA). The Air Traffic Rights Committee (ATRC) is headed by the permanent secretary of the Ministry of Transport, Peter Ong, and includes senior representatives from other government agencies.
Singapore's government says the establishment of the committee 'is in line with the practices of other countries with more than one carrier such as the USA, the UK and Australia'.
ValuAir, an independent privately owned company, is seeking to launch low-cost passenger operations next year.While Singapore's government preaches a liberalisation policy and has signed highly liberal air services agreements with many countries, until now only airlines in the government-controlled SIA Group, namely Singapore Airlines, SilkAir and SIA Cargo, have used Singapore's bank of air traffic rights. But 'with the potential entry of new Singapore-registered carrier(s), the ATRC is established to allocate Singapore's air traffic rights in a manner that maximises both the interests of Singapore as a nation as well as the benefits to the public'.
ValuAir, which is being launched by a number of well-connected Singaporeans including a former managing director of SIA, Lim Chin Beng, plans to start services from Changi airport next year to points in the region such as Bangkok.
Singapore currently has air services agreements with more than 90 countries 'and there are adequate air traffic rights for potential new carriers to carry out viable operations', says the government.
Newly awarded rights granted by the ATRC will be valid for up to five years but rights that are not used for more than six months will be returned to the pool for reallocation.
The government adds that 'in recognition of the role that the SIA Group has played in building Singapore into an aviation hub', SIA will retain its existing traffic rights under a 10-year licence. But the same 'use it or lose it' principle will apply to these rights.
NICHOLAS IONIDES LONDON
Source: Airline Business
