UNITED STATES AND AUSTRALIA ANNOUNCE INTENT TO AGREE ON AVIATION OPEN SKIES

U.S.-Australia Joint Communique

Australia’s Deputy Prime Minister, the Honourable Mark Vaile MP, and US Secretary of Transportation, the Honourable Mary Peters, today confirmed each country’s commitment to further strengthen the aviation relationship between them, and announced their intention to liberalise aviation relations by initiating bilateral discussions to conclude a comprehensive open-skies aviation agreement.

Existing open-skies arrangements between the two countries are limited to cargo services. A commitment now to hold talks with the goal of bringing the benefits of open skies to the passenger market would permit air carriers to determine the frequency of their air services, the routes they wish to serve, and the prices they wish to charge, without governmental interference.

The commitment to these discussions recognises that the liberalisation of international air services, in parallel with the existing bilateral commitment to aviation safety, is a key driver for both countries’ economies, providing the ability to strengthen and expand their already strong trade and tourism links.

Both countries are strong advocates of air service liberalisation and with this shared goal clearly in mind, Mr Vaile and Ms Peters have agreed that their respective aviation officials will meet before the end of this year to commence discussions. Agreement on the detailed terms of an open-skies air services agreement is expected in early 2008.