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Title

QUESTIONS ON NOTICE

International Air Carriers

Database

Senate Hansard

Date

09-08-2006

Source

Senate

Parl No.

41

Electorate

Tasmania

Interjector

 

Page

169

Party

ALP

Presenter

 

Status

Final

Question No.

1843

Questioner

O’Brien, Sen Kerry

Responder

Campbell, Sen Ian

Speaker

 

Stage

International Air Carriers

Type

 

Context

Answers to Questions on Notice

System Id

chamber/hansards/2006-08-09/0165


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Wednesday, 9 August 2006
Page: 169


Senator O’Brien asked the Minister representing the Minister for Transport and Regional Services, upon notice, on 31 May 2006:

(1)   Which international air carriers have sought to expand services to Australia in each of the following financial years: (a) 2003-04; (b) 2004-05; (c) 2005-06; and (d) 2006-07 to date.

(2)   In each case, how has the Government responded.


Senator Ian Campbell (Minister for the Environment and Heritage) —The Minister for Transport and Regional Services has provided the following answer to the honourable senator’s question:

(1)   Requests for capacity increases are generally made at a government to government level through the relevant aeronautical authorities rather than by airlines directly. A number of countries have sought air services consultations with Australia since financial year 2003 - 04 most of which have included a request for expanded capacity. Other talks have been initiated by Australia and some of these have subsequently involved a request by the other country for expanded capacity for their airlines.

(a)   2003 - 04 Consultations were held with Austria, Brunei, Hong Kong, India, Korea, Malta, Mauritius, Qatar, Singapore, the UAE and Vietnam.

(b)   2004 - 05 Consultations were held with Czech Republic, Egypt, European Commission, Fiji, India, Ireland, Mexico, Palau, Taiwan and the United Kingdom.

(c)   2005 - 06 Consultations were held with Brazil, Japan, Qatar and Vietnam. Consultations were also requested by Bangladesh, Canada, French Polynesia, Madagascar, Marshall Islands, Mauritius, Nepal, Pakistan, Qatar, Seychelles, Taiwan (scheduled for end of June 2006) and the UAE.

(d)   2006 - 07 nil

(2)   The Government has negotiated either through formal talks or correspondence with a number of countries. A number of others which have sought talks, identified under 1 c) above, are included in the Government’s forward negotiating program for 2006 - 07. Australia negotiates capacity in two ways, firstly specific capacity entitlements to its four major gateway ports of Sydney, Melbourne, Brisbane and Perth and secondly, the regional package which provides for unlimited capacity to and from all ports in Australia other than Sydney, Melbourne, Brisbane and Perth. Commercial arrangements may also be negotiated that provide opportunities for airlines of either contracting party to enter into code sharing arrangements with the airlines of the same country, the other country and /or a third country as either the marketing or operating airline. Code share capacity may or may not be limited. A summary of the outcomes of the air services consultations since the commencement of the financial year 2003 - 04 is provided below (in alphabetical order by country). The outcome achieved represents a negotiated balance between the interests of both parties.

Country

Outcomes

Austria

(7 October 2003)

Unrestricted capacity for Australia

For Austrian carriers:

- regional package

- increase in capacity to 3600 seats each way each week (ewew) to major ports of Sydney, Melbourne, Brisbane and Perth, increasing to 4400 seats from April 2004, 5200 seats from April 2005 and to 5600 seats from April 2006.

Brazil

(February 2006)

New Air Services Agreement (ASA)

Capacity of seven services (ewew) to any point in the other country

three all-freight services (ewew) for both sides.

Brunei

(March 2004)

New Memorandum of Understanding granting Brunei access to Sydney and Melbourne

For Brunei capacity was increased as follows:

- Brisbane: from 1000 to 1050 seats (ewew) from 30 March 2004

- Sydney and/or Melbourne: 630 seats (ewew) from 30 March 2004 to 840 seats (ewew) from 30 March 2005

- Perth: from 800 to 840 seats (ewew) from 30 March 2004

For Australia capacity was increased from 3600 to 4000 seats (ewew) from 30 March 2004 and to 4400 seats (ewew) from 30 March 2005.

Czech Republic

(June 2005)

New ASA

Capacity of seven services (ewew) for both sides.

Hong Kong

(November 2003)

No outcomes, talks resumed in April 2004.

Hong Kong

(April 2004)

Capacity increased from 35 to 55 services (ewew) immediately, rising to 70 services (ewew) by the end of March 2006

Regional package

Un-used passenger capacity can be freely converted to all-freight capacity.

India

(September 2004)

New ASA

Capacity increased for the airlines of both countries from 2100 seats (ewew) to 4500 seats (ewew) between Australia’s four main gateway ports of Sydney, Melbourne, Brisbane and Perth and four major ports in India: New Delhi, Mumbai, Calcutta and Chennai

Capacity will increase by 1,000 seats (ewew) per year to 6,500 seats (ewew) in October 2006

Open freight.

Ireland

(June 2005)

New ASA

Capacity of seven services (ewew) to major ports of Sydney, Melbourne, Perth and Brisbane for Ireland

Equivalent capacity for Australia

Regional package

Open freight.

Japan

(January 2006)

No agreement by Japan to Australia’s request for increased capacity.

Korea

(3-4 March 2004)

Increased capacity for the Republic of Korea:

- with immediate effect, a total of 6,400 seats (ewew) to and from Sydney, Melbourne, Brisbane and Perth

- with effect from March 2005

- a total of 7,500 seats (ewew) to and from Sydney, Melbourne, Brisbane and Perth

Equivalent capacity increase for Australia

Regional package.

Mauritius

(September 2003)

Access for Mauritius to all points in Australia

Regional package

Capacity increase from two to three services (ewew) in total to Brisbane, Melbourne, Sydney and Perth for Mauritius

Equivalent capacity increase for Australia

Open freight.

Mexico

(February/March 2005)

New ASA text

Capacity of four services (ewew) for each side

Mexico did not agree to any freight capacity

Regional package.

Palau

(September 2004)

New ASA

Capacity of 600 seats (ewew) immediately, rising to 1200 seats (ewew) from April 2007.

Qatar

(October 2003)

New ASA

Capacity of three services (ewew) for each side.

Qatar

(May 2006)

No outcome, parties could not agree on the content of a total package which included a capacity component.

Singapore (September 2003)

New ASA text and arrangements

Open capacity between Australia and Singapore.

South Africa

(Early 06 by correspondence - ongoing)

Australia accepted South Africa’s proposal to amend the current route schedule to allow for a more open route schedule. In addition, Australia has proposed third country code share arrangements.

Taiwan

March 2005

Capacity increased by 400 seats to 4000 seats (ewew).

UAE

(March 2004)

On Abu Dhabi route; an immediate increase from two to four services (ewew)

Capacity increase on the Dubai - Sydney route for UAE airlines from seven services (ewew) to fourteen services (ewew) phased in as follows:

- with effect from November 2004 a total of 11 services (ewew)

- with effect from March 2005 a total of 14 services (ewew)

- giving a total of 49 services (ewew) to each of the major gateway ports of Sydney, Melbourne, Brisbane and Perth.

Equivalent capacity increase for Australia.

UK

June 2005

No additional capacity or improved intermediate options agreed

Talks are to resume in July 2006

Vietnam

October 2003

Capacity increase from five services (ewew) to seven services (ewew)

Regional package.

Vietnam

April 2006

Timing of capacity increases unable to be agreed.