Fri, Feb 15, 2008
Eliminates Air Travel Restrictions To Land Down Under
On Thursday, Secretary of Transportation Mary E. Peters
announced the United States and Australia concluded a landmark
Open-Skies aviation agreement that will eliminate restrictions on
US-Australia air services for the carriers of both countries. The
agreement comes after three days of negotiations in Washington.
"This agreement will strengthen the already close ties between
the United States and Australia," said Peters. "Today’s
agreement begins a new era where American and Australian consumers,
airlines and economies can enjoy the benefits of lower fares and
more convenient service."
Under the new agreement, airlines from both countries will be
allowed to select routes and destinations based on consumer demand,
without limitations on the number of US or Australian carriers that
can fly between the two countries or the number of flights they can
operate. The agreement also removes restrictions on capacity and
pricing, and provides opportunities for cooperative marketing
arrangements, including code-sharing, between US and Australian
carriers.
Although the 1946 US-Australia aviation agreement was
significantly amended in the 1980s, it still contained restrictions
on capacity, routing, pricing and code-sharing, and there was no
provision for charter flights.
In 1999, the two countries took a major step toward liberalizing
air services when they agreed to remove restrictions on
US-Australia air cargo services.
With this agreement, Australia becomes the 90th US Open-Skies
partner. The two sides will abide by the terms of the agreement,
pending its formal signing.
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