MEDIA RELEASE The Hon Anthony Albanese MP Minister for Infrastructure, Transport, Regional Development and Local Government 15 February 2008 AA012/2008

HISTORIC AUSTRALIA-UNITED STATES 'OPEN SKIES' AVIATION AGREEMENT REACHED Minister for Infrastructure, Transport, Regional Development and Local Government, Anthony Albanese, announced today that Australia and the United States had settled the terms of a new "open skies" air transport agreement. Australian and US airlines will now able to determine the frequency of their air services, and the routes they wish to serve without government interference. Previously new entrants to the route were only guaranteed four services weekly, making it difficult for new airlines to start services. Australian travellers, trade and tourism will benefit as designated airlines will be able to operate unlimited services between the two countries, via other countries and beyond to other countries. Over time this will lead to greater choice through increased competition, and provide significant employment opportunities for Australians in the aviation and tourism industries. "This agreement demonstrates the strength of the Australia-US relationship" Mr Albanese said. Mr Albanese also said the agreement highlighted the Australian Government's strong commitment to Australian travellers. "The United States is Australia's third largest aviation market and this agreement removes restrictions on Australian and US airlines starting services and routes between the two countries and beyond to third countries," Mr Albanese said. Mr Albanese said that Australia was a strong advocate of liberalising air services between Australia and the US, while at the same time securing our national and economic interests. "The new agreement will provide great opportunities for increasing trade and commercial links between Australia and the United States. We will have more competition in the market for Australian travellers through the entry of new carriers, such as V Australia," he said. "This should result in greater choice for Australians travelling to and from the United States and to other destinations", Mr Albanese said. "The new arrangements will enable V Australia to proceed with its plans to introduce air services between Australia and the US from late this year. "The Agreement will also provide certainty for Qantas and Jetstar to plan into the future, and widen the network of cities they serve in the United States. "Any airlines wishing to take up the commercial opportunities available under the new arrangements would need to obtain relevant regulatory requirements before commencing operations, including meeting Australia's stringent aviation safety and security requirements," he said. The new arrangements become effective immediately, pending formal approval of the new treaty by the respective Governments. Media Contacts Moksha Watts ( Mr Albanese's Office ) 0413 389 070 Background information Key Features of the Agreement Allows unlimited number of services between any city in the two countries and beyond to other countries. Previous arrangements restricted new airlines to a minimum of 4 services per week. Will facilitate V-Australia's plans to launch services on the route from late 2008, (subject to regulatory approvals). It will also make it easier for US airlines, or new Australian airlines, to enter the route, further building competition, and for Qantas and Jetstar to securely plan for future growth. Allow cargo only services to operate from the other country to a third country, without the need to pass through that airline's home country (also known as "stand alone" or "seventh freedom" cargo services) eg an Australian cargo service could operate New York- Budapest, without the need to pass through Australia). New opportunities for Australian airlines to transport US government travellers on certain categories of flights after October 2008, where previously they were unable to do so. Current services The Qantas Group operates 48 services per week to the US. Qantas currently operates 43 weekly passenger services between Australia and Los Angeles, San Francisco and New York. Jetstar operates five A330-200 services per week to Honolulu. Qantas code-shares to a range of US points with American Airlines (AA), while AA markets seats on Qantas' trans Pacific and selected Australian and NZ domestic flights. Qantas also code-shares with Alaskan Air, Air Pacific and Air Tahiti Nui. V-Australia has announced it intends to commence operations between Australia and the United States from late 2008, subject to regulatory approvals. United Airlines currently operates 14 services per week; 7 services on a LA-Sydney-Melbourne and 7 services per week between San Francisco-Sydney. Three additional services per week operated over the Dec-Jan holiday period between LA and Sydney. Hawaiian Airlines operates three services per week between Honolulu and Sydney.   URL: http://www.minister.infrastructure.gov.au/aa/releases/2008/February/AA012_2008.htm