Economy Report 2007: Australia’s International Air Transport Policy: Liberalistion, Safety and Security

AustraliaRichard WoodDepartment of Transport and Regional Services

To inform Economies of developments in Australia’s international air transport policies in 2007.

Purpose

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Guided by the Government's review of its international air services policy of 21 February 2006.

See: http://www.dotars.gov.au/aviation/international/policy.aspx

Australia’s Air Services Policy

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Australia’s international market has grown by over 60 per cent in 10 years.

Benefits of Liberalisation

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International passengers to/from Australia

0

5

10

15

20

25

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year

Pas

seng

ers

(mill

ion)

• 13.3 million passengers in 1996• 21.5 million in 2006

52 international airlines served Australia in March 2007.

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New International Airlines

• Jetstar, Tiger, Virgin Blue and Etihad now operating• Indian Airways, AirAsiaX and Viva

Macau to commence services• Emirates and Qatar granted rights to

double capacity in coming years

In the last year:• UAE• Qatar• Brazil• Brunei• Turkey• United Kingdom

Bilateral Negotiations

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• Croatia• Hungary• Spain• Sri Lanka

Most talks highly successful – removed major market access barriers, others allow for code share and future growth opportunities.

Domestic deregulation has boosted investment and allowed the entry of new airlines.

• 41.8 million passengers carried in year ending June 2006; 5.8 per cent growth

• Tiger Airways to commence stand alone domestic operations• Virgin Blue (originally foreign owned) is firmly established in the market• Regional Express and Skywest are flourishing under

foreign ownership in the regional market

Domestic Market

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• Australia has 19 air services agreements with APEC economies• APEC = 2/3rds of Australia’s O/D traffic

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Asia Pacific Region

We are the growth region• over 8 per cent growth!

Asia Pacific Region

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But we can’t get complacent – EU-US agreement opens 60 per cent of global traffic.

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Australia - Where to Now?

• Principal place of business designation• Unlimited access to regional airports • Open skies for freight services• Bring Montreal Convention into force, consider Cape Town Convention• Pursue reform in APEC, WTO and ICAO• Liberalise through bilateral agreements

Australia is working to improve and harmonise standards.

• New liquids, aerosols and gels regulations• Mutual recognition of Air Operator Certificates with New Zealand• Bilateral Aviation Safety Agreement with the USA

Safety and Security

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Thank you!