Cabotage proposal for northern Australia

[dajop]

I couldn't find any recent discussion on AFF after searching the word cabotage (if there was, mods please delete or merge as appropriate), but noticed on Rex's website, that last month they presented a position on cabotage discussions for northern Australia. Then I googled cabotage and northern Australia and it seems there was quite some debate on this a month ago.

Rex seems to take the Singapore Inc. approach (I am sure Silkair would like to sell seats between DRW & CNS), and favoured eighth freedom in the north (allowing international carriers travelling into one city and out of another to sell domestic seats between the two), but not carte blanche ninth freedom. A number of industry players seem quite opposed to it. Not sure where I stand, but could see upsides and downsides (could it mean more international services for places like TSV?).

 

[juddles]

Just for the uneducated: (as I was until three seconds ago)

"Cabotage Cabotage is the transport of goods or passengers between two points in the same country by a vessel or an aircraft registered in another country. Originally a shipping term, cabotage now covers aviation, railways, and road transport. It is "trade or navigation in coastal waters, or, the exclusive right of a country to operate the air traffic within its territory".[SUP][[/SUP]

 

[juddles]

...could it mean more international services for places like TSV?.....

Maybe, but I assume the number of people from TSV who want to fly direct internationally on any given flight are less than the number of pax from the first port who would object to having a stopover in TSV.

Thinking a bit outside the square - another application could be airlines tacking on one of the BNE/SYD/MEL airports to an international flight also leaving from one of those three. Thus they could sell seats for pax to go SYD-BNE, and then continue with their normal BNE-wherever international leg. Would make available some nicer J product between the main cities here And depending on the airline and overseas leg, this could enable better use of aircraft by sending them on a domestic return leg in between the main flights.

 

[Danger]

The aviation cabotage in the north of Australia - an idea that would allow foreign airlines to operate domestic routes north of the Tropic of Capricorn only - was one that was bandied around in the lead up to the release of the government's Northern Australia White Paper, Our North, Our Future. Trade Minister Andrew Robb and Treasurer Joe Hockey were keen supporters of the idea; Minister for Infrastructure and Regional Development, Warren Truss and his department were against it. It was also universally condemned by the airlines and was also not supported by the federal opposition. Hockey eventually came round and ultimately sided with Truss. The only reference to the idea in the white paper is on page 100:

Recognising that aviation and land transport services to northern Australia will play a critical role in the long term development of the region, the Deputy Prime Minister will establish a business stakeholder group to assist him in preparing a plan for improving aviation and surface transport connections to northern Australia. This will include developing measures to support the sustainable and long term growth of both Australian and international airlines’ air services to and from northern Australia and identifying opportunities to better integrate the north with ASEAN trading partners and the region.​

In my opinion it is very unlikely to ever see the light of day.

 

[wandering_fred]

I suspect Broome and Port Hedland would love to have direct service to CGK and SIN. Even if the non-resident work force is now in somewhat of a decline. Expecially considering the potential of inbound tourists. While international airlines connecting 2nd and 3rd tier northern airports would certainly aggravate some airlines, what would the creation of an Australian domestic subsidiary to "wet lease" those segments do? Or are the expenses related to that mythical domestic offshoot set at the prohibitive level?

Danger - did you mean likely or unlikely with respect to limited cabotage in northern Australia?

Happy wandering

Fred

 

[Danger]

I suspect Broome and Port Hedland would love to have direct service to CGK and SIN. Even if the non-resident work force is now in somewhat of a decline. Expecially considering the potential of inbound tourists. While international airlines connecting 2nd and 3rd tier northern airports would certainly aggravate some airlines, what would the creation of an Australian domestic subsidiary to "wet lease" those segments do? Or are the expenses related to that mythical domestic offshoot set at the prohibitive level?

Danger - did you mean likely or unlikely with respect to limited cabotage in northern Australia?

Happy wandering

Fred

Thank you. Typo on my part. I have corrected.

 

[clazman]

For what it is worth, u can fly from port Hedland to Bali already with Skywest

 

[JohnK]

I am a huge fan of tag flights especially if it keeps airfares down. Adding another 1-2 hours to a trip for me is nothing.

I am not sure I agree with the possibility of foreign carriers flying domestic services. Sure Silkair can fly SIN-DRW-CNS and return but should not be able to pick up passengers that will only fly the domestic leg.

 

[dajop]

I am not sure I agree with the possibility of foreign carriers flying domestic services. Sure Silkair can fly SIN-DRW-CNS and return but should not be able to pick up passengers that will only fly the domestic leg.

I'm not sure either. I can see merit, in it might make it more attractive for carriers to serve destinations not served already (but wouldn't work on their own), and support expansion of tourism, (eg, take an example SIN-BME-LEA-SIN), particularly if the tag is not daily in both directions (like SIN-DRW-CNS some days and SIN-CNS-DRW others). But it could also be open to abuse, for example if Silkair were to have a daily SIN-DRW-CNS and serve CNS in its own right, effectively just using the tag for domestic sectors.

In any event, I think the airlines should (and presume they can) be allowed to sell a ticket with stopovers before continuing on domestically, for example SIN-DRW/stop/DRW-CNS/stop/CNS-SIN. Can't seem to be able to buy these on MI website, not sure if that's a failing of the website (likely) or they can't sell tickets this way.

OT, but related, I was looking at a similar option for QR, now that they fly to Zanzibar via Kilimanjaro (both in Tanzania), given Africa's aviation record it would be neat to do a stopover in Kilimanjaro and take QR for the domestic flight, to Zanzibar (using points of course ) but website doesn't seem to sell this either. (was more of a pipedream, haven't investigated further).

 

[JohnK]

In any event, I think the airlines should (and presume they can) be allowed to sell a ticket with stopovers before continuing on domestically, for example SIN-DRW/stop/DRW-CNS/stop/CNS-SIN. Can't seem to be able to buy these on MI website, not sure if that's a failing of the website (likely) or they can't sell tickets this way.

I wouldn't have an issue if stopovers were allowed as that travel is part of an international itinerary.

 

[SeatBackForward]

DRW should become a gateway hub in and out of Australia anyhow, it's ideally placed for it.

 

[N860CR]

It opens up the domestic network to abuse by certain airlines (let's call them Jetstar) to use cheap south East Asian labour to operate domestic sectors under the label "intl tags". Good in theory.... It would be abused in practice (as it has been in the past on DPS/HNL "tags"

 

[dajop]

It opens up the domestic network to abuse by certain airlines (let's call them Jetstar) to use cheap south East Asian labour to operate domestic sectors under the label "intl tags". Good in theory.... It would be abused in practice (as it has been in the past on DPS/HNL "tags"

I was more thinking that the likes of QZ could abuse it. But I guess such abuse would be far less attractive, if limited to north of the tropic of capricorn. DRW, CNS & TSV are really the only major population centres (>100,000) in the tropics.

 

[JohnK]

DRW should become a gateway hub in and out of Australia anyhow, it's ideally placed for it.

Full service carriers or LCCs?

If full service carriers then DRW needs to be redeveloped into a proper international airport. And Darwin would also need to be able to cope with greater amount of stopover traffic. It will take time for the infrastructure to be in place.