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Australia and Indonesia agree to increase airline capacity



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MINISTER FOR TRANSPORT AND COMMUNICATIONS

AUSTRALIA AND INDONESIA AGREE TO INCREASE AIRLINE CAPACITY

The Australian and Indonesian Governments have agreed to increase the number of flights between the two countries over the next two years, as well as the number of Australian cities to be served by Indonesian airlines.

Announcing an agreement, the Minister for Transport and Communications, Kim Beazley, said approval had been given to increase capacity by more than 40 per cent by April 1992.

Indonesian airlines would also be allowed to exercise traffic rights at three additional Australian cities in return for Qantas being given full traffic rights between Indonesia and Singapore, Malaysia and Thailand.

"This agreement, which will allow the Indonesian airlines to begin direct services to Brisbane and Adelaide, and to Cairns or Townsville, is a further indication of the Government's continuing commitment to developing

international tourism to Australia's regional centres," Mr Beazley said.

He said the increase in flights was consistent with the Government's policy of ensuring that capacity entitlements kept well ahead of demand.

It would also allow the airlines and "ourism authorities to develop the considerable tourism poten.. ’ 1 of Australia's closest Asian neighbour.

Mr Beazley welcomed the agreement and said the good relations between Australia and Indonesia in the aviation field reflected the continuing high levels of cooperation in the broader bilateral relationship.

Kim C Beazley, M P

NEWS [RELEASE 5 March 1991 16/91

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Media contact: Beth Cooper (06) 274 7858