Tuesday, June 18, 2007
DOTARS to Discuss Further Liberalisation of Air Services with South Korea.
Dear,
We have received the following advice from DOTARS regarding discussion on air service arrangements with the Govt of the republic of Korea. Members are invited to send their comments to DOTARS where relevant:
The Department of Transport and Regional Services has received a request from the aeronautical authorities of the Republic of Korea (Korea) to hold air services consultations to discuss further liberalisation of air services arrangements between Australia and Korea. Korea has not specified particular issues for discussion but we would expect the eventual agenda to include issues such as capacity, route and traffic rights entitlements. The talks are also expected to canvass any necessary changes to the air services agreement between Australia and Korea.
Subject to ministerial agreement, talks are planned to be held in Canberra on 22-23 August 2007.
Any comments you may wish to make in relation to the approach by Korea should be provided by cob Wednesday 4 July 2007. Please forward them for the attention of Wayne Kelly, Bilateral Aviation, Aviation Markets Branch. Please note that any input provided will be made available for the information of all members of the Australian delegation to bilateral negotiations unless specific instructions to the contrary are received with the input.
Email: wayne.kelly@dotars.gov.au
Fax: 02 6274 6749
Mail: GPO Box 594, Canberra ACT 2601
To assist you in preparing any comments you may have, a summary of Australia’s current air services arrangements with Korea is provided below.
Current capacity arrangements
Combined passenger/cargo capacity: designated airlines (the airlines) of each country may operate 7500 seats per week to and from Sydney, Melbourne, Brisbane and Perth on the relevant routes [Korea (Route 1) and Australia (Route 2)].
If, in operating the agreed services, the total capacity available will be exceeded, an excess of up to 120 seats per week is permitted. In view of the seasonal market, the aeronautical authorities may also give favourable consideration to requests for supplementary capacity during periods of peak demand.
The airlines of each country may operate unrestricted capacity, frequency and aircraft type to and from all points in Australia other than Sydney, Melbourne, Brisbane and Perth, in accordance with the relevant routes. There is specific confirmation that there is no limit on capacity entitlements for the airlines of Australia for direct services between points in Australia and Cheju.
Freight capacity: in operating dedicated cargo services on the specified routes, the designated airlines of each side may determine the frequency, capacity and aircraft type to be operated on the specified routes.
Code sharing: liberal code sharing provisions, which include the ability to code share on services operated by carriers of third countries, are already in place.
Passenger Routes
Korea (Route 1): Points in the Republic of Korea via any one point from Hong Kong or Singapore or Thailand or Malaysia or the Philippines or Indonesia, and one point in New Zealand to points in Australia and beyond to one point in New Zealand.
Australia (Route 2): Points in Australia via any four points from Hong Kong or Singapore, one point in Thailand, one point in Malaysia, one point in the Philippines, one point in Japan and two points in the South West Pacific and two points in Asia except mainland China, to be nominated to points in the Republic of Korea and beyond to one point in one country from Asia, except mainland China.
Freight Routes
Korea (Route 3): Points in the Republic of Korea via any intermediate points to points in Australia and beyond to one point in New Zealand, one point in South America and three points in Asia.
Australia (Route 4): Points in Australia via any intermediate points to points in the Republic of Korea and beyond to one point in the USA, one point in Europe, and three points in Asia.
Traffic Rights
Passenger
Airlines of either country may exercise own stopover rights between nominated points in the territory of the other country on Routes 1 and 2.
Korea (Route 1): Korean carriers may serve New Zealand with own stopover rights only.
Australia (Route 2): Australia carriers may serve beyond points with own stopover rights only or may serve one point beyond in the UK not specified on Route 2 with own stopover rights only.
Freight
Korea (Route 3): Korean carriers may exercise 5th freedom rights to and from one point in New Zealand, one point in south America and three points in Asia as a beyond point on up to six services weekly.
Australia (Route 4): Australian carriers may exercise 5th freedom rights to and from one point in the USA, one point in Europe and three points in Asia as a beyond point on up to six services weekly.
In the event that the points in mainland China become available for the airlines of any other country in its bilateral arrangements with the Korea, the Korea will favourably consider the removal of the current restriction on mainland China as an intermediate point on Route 2.
Australia-South Korea Aviation Market: Total Origin/destination traffic in the year to end April 2007 was 623,510 (nearly 6,000 each way each week). The market is almost 90 per cent inbound and 10.5 per cent outbound. Passenger numbers grew by 9.1 per cent in the year to end April 2007. The average annual growth rate for the three years 2003-2006 was 8.1 per cent.
Thank you and kind regards,
Wayne Kelly
Bilateral Aviation, Aviation Markets
Department of Transport and Regional Services, Australia
Phone: +61 2 6274 6737
Fax: +61 2 6274 6749
Thank you and kind regards,
Brian Lovell
Chief Executive Officer
Australian Federation of International Forwarders Ltd (AFIF)
Suite 403, Level 3
152 Bunnerong Road
Eastgardens
NSW 2036
Tel: (61 2) 9314 3055
Fax: (61 2) 9314 3116
|