Australia and China have sealed a historic agreement, which will allow airlines fly an unlimited number of services and passengers between the two countries.
Designed to increase tourism and trade relations, the new Air Services Agreement removes all capacity restrictions effective immediately, giving Chinese carriers free rein on flights to and from Australian cities, and vice versa.
The agreement comes as carriers from both countries have increased presence in each other’s cities, thanks to an arrangement signed earlier this year to triple gateway capacity between Australia and China by the end of 2016.
As a result of close relations, Australia has seen new air links between the two countries open up almost weekly with airlines such as Xiamen Airlines, China Eastern, Air China, China Southern and Hainan Airlines taking advantage of the arrangement.
According to Australia’s Minister for Trade, Tourism and Investment, Steven Ciobo, the new arrangement will help Australia further tap into the Chinese market, which has quickly become the “fastest growing and high spending international visitor market” with some 1.1 million Chinese visitors arriving in Australia for the year ending June 2016, up 22 percent on the prior year.
The Flying Kangaroo, Qantas, also welcomed the news, saying it lays the “foundations for long-term growth” between the two destinations, especially at a time where both Australian and Chinese airlines have major presence in each other’s countries.
While Sydney Airport’s CEO, Kerrie Mather, sees the agreement as a recognition of the “huge potential” for travel between China and Australia.
“Our airline partners have expressed strong interest in the potential for new services from China, building on our recent growth and our position as a world leader in Chinese long-haul routes.”
Kerrie Mather, Sydney Airport CEO
“This decision delivers expanded bilateral capacity ahead of demand, maximising the value to the visitor economy.”
Ms Mather said the significant growth of Chinese routes since the last increase in air rights in January 2015 highlighted the impact such an agreement could have.
