Open skies the market and not the minister could decide on how often airlines can connect to Australia
The main issue is whether these decision-making is even left the minister instead of being given to the market.
The issue is due to an outdated international treaty that dealt with commercial aviation dating back to an era when security for security of the nation was the primary issue. However, there is an alternative that has been used by other countries known as open-skies agreement.
Australia has open-skies agreement with only seven countries: China, India, Japan, New Zealand, Singapore (which is the reason why Singapore Airlines will be expanding its services into Australia with no controversy) as well as in the US along with in the United Kingdom. This means that Australia an outlier in comparison to other advanced nations.
This federal document Aviation Green Paper 2023 is only 2 of 224 pages on International aviation contests. The document does not suggest any change to the method of operation.
The Federal Minister for Transport Catherine King has offered a variety of reasons to deny Qatar Airways’ expansion of its Australian flights. Lukas Coch/AAP
Since Australia has vast distances from the major cities Governments have always wanted to ensure that Australia was served by air routes that were reliable, secure and financially viable.
But, the aviation industry has evolved. The rise of hubs with major hubs, initially located in South-East Asia, then in the Middle East, altered the global aviation structure.
Treaties that Australia has signed long ago have been deemed obsolete. Direct flights operated by Australian and European airlines are generally not competitive with midpoint hubs where airlines are able to connect over 50 towns across Europe with Australian gateways.
Non-stop flights from other regions are now readily available and are being offered by a growing amount of airlines from many nations. The system has enough redundant within the system that even if any airline were to stop operating in Australia the security and security of air services will remain in place.
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
Open skies in Australia’s national interest
Australia could see an increase in international flights. Being an island country aviation is vital to two of our biggest exports including tourism and education. The enduring the demand for flights despite record-high fares demonstrates this.
Australian carriers have not yet flagged significant international service expansions beyond pre-COVID standards. In fact, they have repeatedly failed to make use of existing rights for traffic to the major markets, such as Malaysia. In the introduction of lower-cost flights such as 67-week-long flights operated by Air Asia Air Asia group, from these markets has shown that the new services for air create new demand and don’t necessarily affect incumbent operators. AirAsia Xpanding Services To China and Australia.
The protection of an Australian-based international company is unwise and may be detrimental to the economy in general.