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Wirraway
22nd Nov 2004, 15:22
Tues "The Australian"

Minister propels push for open sky
Steve Creedy, Aviation writer
November 23, 2004

THE Singapore Government has turned up the heat on stalled open skies negotiations, with the island state's Transport Minister describing the pact as "unfinished business" and pronouncing the aviation industry "more than recovered" from the uncertainties of last year.

The comments by Singapore Transport Minister Yeo Chow Tong last Friday were a further indication of Singapore's desire to restart negotiations which would give its carriers the right to fly passengers between Australia and the US.

Transport Minister John Anderson has said he expects to hold fresh talks on the issue in the next few months but has not committed himself to a decision.

Negotiations were put on hold when the two countries signed an expanded Air Services Agreement last year because the Australian Government believed SARS and the Iraq war had made the industry environment too unstable.

But Mr Yeo said he had been reminding Mr Anderson about a commitment to resume open skies negotiations over the past few months "as the aviation industry has more than recovered".

"I welcome the early resumption of these talks, and I hope that the open skies agreement can be concluded shortly after that," he said.

"The successful completion of the open skies agreement will put into place the last missing piece in our strong bilateral relationship."

Mr Yeo had earlier described the granting of an air operator's certificate to Qantas-backed low-cost carrier Jetstar Asia as another milestone in Singapore-Australia relations.

He said it allowed Qantas to tap into a southeast Asian aviation market of 500 million people, offering tremendous business and growth opportunities.

"However, there is still some unfinished business," he said. "This is the long-standing open skies agreement between Australia and Singapore.

"Under an OSA, Australian carriers will be able to increase their services beyond Singapore.

"Likewise, Singapore carriers will have a level playing field by having the right to operate services beyond Australia to the US."

However, Qantas argued the high oil price and problems with US airlines meant the industry was still not stable.

Spokesman Michael Sharp said that allowing Singapore Airlines to fly to the US would not mean that Qantas would have equivalent rights to fly routes beyond Singapore.

This was because the Australian Government had not negotiated agreements with some foreign governments to allow Qantas to operate the services it might want from Singapore.

"Qantas has a limit of 28 services per week to the UK but Singapore Airlines can fly as often as it likes to the UK," Mr Sharp said.

"And the Singapore Government cannot give us any more rights to fly to the UK."

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