Open skies talks to increase flights to US
A report by Steve Creedy in The Australian says that Governments on both sides of the Pacific believe significant economic benefits are likely to flow from an open skies agreement between the US and Australia.
Australian transport officials confirmed yesterday that negotiations were expected to take place between February 12 and 14.
Any agreement is expected to give travellers more choice and cheaper fares on busy trans-Pacific routes as well as make Australia more attractive to US carriers.
United Airlines is the the only US carrier providing direct services between Australia and the US mainland, although Hawaiian Airlines offers one-stop options through Honolulu.
A Transport Department spokesman would not reveal details of Australia’s position but said: “Both parties note the significant economic potential of an agreement.”
The comments came as Virgin Blue enthusiastically reaffirmed its support for an open skies agreement. The carrier is expected to be the big beneficiary of the talks, as they open the way for its new international carrier, V Australia, to start services to the US West Coast using Boeing 777-300ER aircraft.
V Australia is applying to fly 10 services a week, but current bilateral agreements require special permission to run more than four a week on South Pacific routes.
Removing the South Pacific restriction and others on flights through North Pacific destinations, such as Japan, will be a focus of the negotiations.
The new Australian carrier is still considering several Australian destinations, including Sydney, Melbourne and Brisbane, and has not discounted flying via Auckland. It hopes to announce its routes at its half-yearly results.
Chief executive Brett Godfrey said yesterday that the airline’s 10 weekly routes would allow it to enter the market “with an intent to bring real change”.
But he warned that anything less would be a disincentive and would not provide the stimulus the airline intended to bring to the route and tourism.
There has been speculation that Qantas will be seeking to lift limits on the percentage of the direct market it can hold.
A Report by The Mole from The Australian
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