The Times Australia
The Times World News

.
The Times Real Estate

.

Under 'open skies', the market, not the minister, would decide how often airlines could fly into Australia

  • Written by Ian Douglas, Honorary Senior Lecturer, UNSW Aviation and Fellow of the University of Wollongong, UNSW Sydney
Under 'open skies', the market, not the minister, would decide how often airlines could fly into Australia

Federal Transport Minister Catherine King has offered several explanations[1] for the decision to deny the Qatari government’s request to fly extra flights into Sydney, Melbourne, Brisbane and Perth.

None of them amounts to a clear rationale for the decision, which has been criticised by airlines[2], airports[3], tourism bodies[4] consumer advocates[5] and state governments[6].

The big question is why such decisions are even up to the minister, rather than being left to the market.

It stems from an outdated international treaty on commercial aviation, from a time when national security was the prime concern. There is, however, a workaround, which other nations have been using, known as open-skies agreements.

Read more: Grattan on Friday: Transport Minister Catherine King struggles to find a landing strip amid Qatar turbulence[7]

An outdated convention

King’s right to rule on international flights is based on the Convention on International Civil Aviation[8], signed in December 1944 in Chicago – and hence known as the Chicago Convention.

Representatives from 54 nations attended the convention. All agreed they should have sovereignty over the airspace above their territory. The resulting framework prohibited international commercial flights unless expressly permitted. Thus, for an airline to fly internationally there must first be a government-level agreement to permit it.

For example, no Australian airline can operate scheduled commercial services or even sell codeshare flights to the Maldives, because Australia has no air service agreement with the South Asian archipelago.

While the level of demand today may not justify direct services, the framework effectively ensures there never will be that demand.

Turning to open-skies deals

Changing this bilateral-treaty system has proven difficult. Many countries have, since the 1990s, taken the next best approach: open-skies agreements.

An open-skies agreement is a deal between two or more nations that allows for unlimited commercial services without the need for explicit ministerial approval.

Nations can still intervene, so sovereignty is preserved, and intervention is typically limited to safety and security grounds.

The United States has open-skies agreements with more than 100 nations, including the United Arab Emirates and Qatar. Singapore has open-skies agreements with more than 60 nations. Canada has open-skies agreements with 23 nations.

The US, Singapore and New Zealand are parties to an eight-nation multilateral open-skies agreement (the Multilateral Agreement on the Liberalization of International Air Transportation[9]), which does not include Australia.

Australia has open-skies agreements with just seven nations: China, India, Japan, New Zealand, Singapore (which is why Singapore Airlines is expanding services to Australia[10] without controversy), the US and the United Kingdom. This makes Australia a relative outlier among developed nations.

The federal government’s Aviation Green Paper 2023[11] spends only 2 of 224 pages discussing international aviation competition. It proposes no change in approach.

Woman gives speech in front of airport departure signs
Federal Transport Minister Catherine King has offered a range of reasons for denying Qatar Airways’ expansion of its Australian flights. Lukas Coch/AAP

Redundant rationale

Because Australia is separated by great distances from major population centres, governments historically wanted to ensure Australia had air services that were secure, reliable and economically viable.

However, aviation has moved on. The emergence of major hubs, first in South-East Asia, then in the Middle East, altered the structure of international aviation.

Treaties that Australia negotiated long ago have become redundant. Direct flights by Australian or European airlines are largely uncompetitive against midpoint hubs, where the carriers connect more than 50 cities in Europe to Australian gateways.

Non-stop flights to other regions are now widely available, and are offered by an increasing number of airlines from various countries. There is enough redundancy in the system that if one or more airlines stopped serving Australia, the security and reliability of air services would still be maintained.

Read more: What will putting the interests of Qantas ahead of Qatar Airways cost? $1 billion per year and a new wave of protectionism of legacy carriers[12]

Open skies in Australia’s national interest

Australia would experience a net benefit from more international flights. As an island nation, aviation is essential for two of our largest export industries: education and tourism. The persistence of demand for air travel despite record high fares illustrates this.

Australian carriers have not flagged meaningful international service expansion beyond pre-COVID levels. Indeed, they have consistently neglected to use existing traffic rights to major markets such as Malaysia. The introduction of low-cost services, such as 67 weekly flights by the Air Asia group, from such markets has demonstrated that new air services stimulate new demand and do not necessarily harm incumbent operators AirAsia Xpanding Services To China And Australia[13].

Protecting a stagnant Australian-based international operation is unnecessary and even harmful to the broader economy.

It’s also in Australia’s national interest to ensure adherence to international obligations and adoption of values that Australia promotes. As a nation that has long espoused liberal economic values, it’s in Australia’s interest to commit to healthy competition in the aviation industry and reduce arbitrary decision-making.

Read more: Grattan: Albanese's government has questions to answer on competition[14]

A key obligation of signatories to the Chicago Convention is to ensure civil aviation is used for purposes consistent with the convention’s aims. One aim is that “international air transport services may be established on the basis of equality of opportunity”.

Protecting the profit of Australian airlines, when no such reason has been cited in other similar cases, risks breaching this obligation. The inability of Australia’s transport minister to provide a clear rationale for the decision is precisely why the decision is best left to the market.

References

  1. ^ several explanations (www.afr.com)
  2. ^ airlines (www.abc.net.au)
  3. ^ airports (www.smh.com.au)
  4. ^ tourism bodies (www.theaustralian.com.au)
  5. ^ consumer advocates (www.abc.net.au)
  6. ^ state governments (australianaviation.com.au)
  7. ^ Grattan on Friday: Transport Minister Catherine King struggles to find a landing strip amid Qatar turbulence (theconversation.com)
  8. ^ Convention on International Civil Aviation (www.icao.int)
  9. ^ Multilateral Agreement on the Liberalization of International Air Transportation (www.maliat.govt.nz)
  10. ^ expanding services to Australia (australianaviation.com.au)
  11. ^ Aviation Green Paper 2023 (www.infrastructure.gov.au)
  12. ^ What will putting the interests of Qantas ahead of Qatar Airways cost? $1 billion per year and a new wave of protectionism of legacy carriers (theconversation.com)
  13. ^ AirAsia Xpanding Services To China And Australia (simpleflying.com)
  14. ^ Grattan: Albanese's government has questions to answer on competition (theconversation.com)

Read more https://theconversation.com/under-open-skies-the-market-not-the-minister-would-decide-how-often-airlines-could-fly-into-australia-213214

The Times Features

Why Regional Small Businesses in Bendigo Deserve Better Access to Finance in 2025

In the heart of regional Victoria, Bendigo has long stood as a beacon of innovation, resilience and community spirit. As we step further into 2025, the importance of nurturing sm...

Is It Time for a Deep Cleaning? Signs You Shouldn’t Ignore

Most people know they should visit the dentist for a regular check-up and cleaning every six months. But sometimes, a standard cleaning isn’t enough. When plaque and tartar build...

The Hidden Meaning Behind Popular Engagement Ring Cuts

When it comes to engagement rings, the cut of the diamond is not just about aesthetics. Each shape carries its own symbolism and significance, making it an important decision for...

Annual Health Exams in the Office: How They Can Reduce Sick Days and Healthcare Costs

Regular health check-ups, especially annual health exams in the office, can significantly impact the overall well-being of your workforce. A proactive approach to employee health...

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping