U.S. Transportation Secretary Mary Peters Announces New Open-Skies Aviation Agreement with Australia

Thursday, February 14, 2008 -- U.S. Secretary of Transportation Mary E. Peters today announced that the United States and Australia concluded a landmark Open-Skies aviation agreement that will eliminate restrictions on U.S.-Australia air services for the carriers of both countries. The agreement comes after three days of negotiations in Washington.

“This agreement will strengthen the already close ties between the United States and Australia,” said Secretary Peters. “Today’s agreement begins a new era where American and Australian consumers, airlines and economies can enjoy the benefits of lower fares and more convenient service.”

Under the new agreement, airlines from both countries will be allowed to select routes and destinations based on consumer demand, without limitations on the number of U.S. or Australian carriers that can fly between the two countries or the number of flights they can operate. The agreement also removes restrictions on capacity and pricing, and provides opportunities for cooperative marketing arrangements, including code-sharing, between U.S. and Australian carriers.

Although the 1946 U.S.-Australia aviation agreement was significantly amended in the 1980s, it still contained restrictions on capacity, routing, pricing and code-sharing, and there was no provision for charter flights. In 1999, the two countries took a major step toward liberalizing air services when they agreed to remove restrictions on U.S.-Australia air cargo services.

With this agreement, Australia becomes the 90th U.S. Open-Skies partner. The two sides will abide by the terms of the agreement, pending its formal signing.

Source: DOT