More flights to China expected after revised air services agreement

[markis10]

Australia is poised for an influx of second-tier Chinese airlines and increased flights from the major state-owned carriers under a new deal that could provide a major boost for the local tourism industry.


Under a revised air services agreement to be announced on Friday, the cap on seats from Beijing, Shanghai and Guangzhou to the major gateway cities of Sydney, Melbourne, Brisbane and Perth will be raised by an immediate 18 per cent, with more to follow in stages over the next two years.


The deal could help clear the way for new flights between Brisbane and Shanghai, and Perth and Shanghai, contemplated under a joint-venture deal between China Eastern and Qantas that is being examined by the competition regulator.


But it could also allow Chinese carriers to increasingly target Australian passengers on the "Kangaroo route" by using their home cities as hubs for European flights in competition with airlines such as Qantas, Emirates, Singapore Airlines and Cathay Pacific.

http://www.smh.com.au/business/new-...to-more-chinese-airlines-20150122-12w4gc.html

 

[Himeno]

I don't think that article is correct on the number of seats, unless China has a slightly lower seat allowance then Australia does.

The current agreement allows 20330 (18,029 currently available + the 2,301 QF is using) seats per week each way between SYD, MEL, AVV, BNE and PER to anywhere in mainland China and unlimited from other Australian ports.

 

[markis10]

I don't think that article is correct on the number of seats, unless China has a slightly lower seat allowance then Australia does.

The current agreement allows 20330 (18,029 currently available + the 2,301 QF is using) seats per week each way between SYD, MEL, AVV, BNE and PER to anywhere in mainland China and unlimited from other Australian ports.

What part do you have issue with given the article states:

Chinese airlines had reached the previous cap of 18,029 weekly one-way seats at certain times of the year, meaning no new services could be added by existing carriers or launched by new ones looking to enter the market. By October 2016, 33,500 seats each way will be available each week. Photo: AP

 

[Himeno]

What part do you have issue with given the article states:

Chinese airlines had reached the previous cap of 18,029 weekly one-way seats at certain times of the year, meaning no new services could be added by existing carriers or launched by new ones looking to enter the market. By October 2016, 33,500 seats each way will be available each week. Photo: AP

"I don't think that article is correct on the number of seats, unless China has a slightly lower seat allowance then Australia does."

The numbers in that article are only correct if China's total current allowance is equal to what Australian airlines are currently not using.

It's also misleading as there isn't anything in the current treaty preventing Chinese airlines starting service to other Australian ports such as Cairns, Darwin or Canberra.

If this new agreement is being signed today, then no doubt the details will be added to the IASC listing next week.

 

[Isochronous]

How about more than 1 QF flight to China? More A333 and 789s required please.

 

[Danger]

New air deal with China: 2015 off to a flying start for Australian tourism

Growth opportunities for Australia's tourism industry are set to increase following the settlement of a landmark new air services agreement between Australia and China.

Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss, along with Trade and Investment Minister Andrew Robb, who is responsible for tourism, today announced the conclusion of negotiations between the two countries.

“Making it possible for Asian markets to grow has been a key priority for the Abbott Government, and this new deal with China will allow Chinese airlines to almost triple their services to Australia over the next two years,” Mr Truss said.

“Under the new arrangements, Australian and Chinese airlines will be able to immediately operate up to 26,500 seats per week between Australia's major gateway cities and Beijing, Shanghai and Guangzhou—an increase of 4,000 weekly seats or around 18% on these routes.

“A further 7,000 weekly seats to and from these destinations will be phased in over the next two years, to a total of 33,500 weekly seats.

“This opens up opportunities for Australian airlines to better serve the China market.”

Mr Robb said the new arrangements build on the success of the China-Australia Free Trade Agreement (ChAFTA) concluded recently with Beijing.

“Just as ChAFTA creates significant opportunities for Australian businesses in China, this new deal increases connectivity between our economies, particularly in tourism,” Mr Robb said.

“Last year, 100 million Chinese travelled abroad and this is set to double to some 200 million by 2020. Tripling aviation capacity from China into Australia over the next two years will ensure we are well placed to capture our share of this growth.”

Mr Robb said in 2013–14, nearly 760,000 Chinese travellers spent close to $5 billion in Australia, and with the hugely popular Chinese New Year around the corner, conclusion of the negotiations were most timely.

“China is our most valuable tourism export market. This agreement—along with the launch of the recent pilot program for online visa applications by Chinese visitors—means our tourism sector is well primed for 2015,” Mr Robb said.

Recognising the significance of emerging markets in China, Mr Truss said that, for the first time, the new arrangements provide a separate pool of capacity dedicated to cities in China other than Beijing, Shanghai and Guangzhou.

He noted that the capacity available for airports in China's second and third tier cities is set at the same level as major Chinese gateway capacity, which will help accommodate the demands of these rapidly growing regions.

“Airlines can continue to offer unlimited passenger services between China and regional Australian ports, such as Cairns, Adelaide, Darwin and the Gold Coast, ensuring tourism operators in our rural and regional areas have access to the lucrative Chinese tourism market,” Mr Truss said.

“Removal of unnecessary regulation has also been a priority for the Government, and Chinese agreement to remove any requirements for government approval of airfares in China will further reduce regulatory burdens on Australian airlines doing business there.

“The Australian Government is committed to ensuring that we have the aviation capacity necessary to meet future demand into and out of foreign markets and recognises the potential of Australia as a prime tourism destination within the Asia-Pacific region.”

When operating services to/from all cities in Australia other than the Australian Major Gateways (Sydney, Melbourne, Brisbane and Perth), airlines of both sides enjoy open capacity.

When operating services between the Chinese Major Gateways (Beijing, Shanghai, Guangzhou) and the Australian Major Gateways, airlines of both sides may operate the following:

• with immediate effect, 26,500 seats each way each week;
• from October 2015, 30,500 seats each way each week; and
• from October 2016, 33,500 seats each way each week.

When operating services between all cities in China other than the Chinese Major Gateways and the Australian Major Gateways, airlines of both sides may operate the following:

• with immediate effect, 26,500 seats each way each week;
• from October 2015, 30,500 seats each way each week; and
• from October 2016, 33,500 seats each way each week.

In addition, airlines of both countries linking an Australian Major Gateway and another city in Australia as part of a multi-stop international service, may operate an extra 2,500 seats each way each week.

A phased expansion of traffic rights at beyond and intermediate points has also been negotiated. By October 2016, airlines of each side will be able to access an additional three beyond points of choice (except for points in North America) and an additional six intermediate points.

These rights provide access to Australian airlines to fly beyond China to a variety of locations, including Europe, and will offer greater flexibility for airlines flying to China via intermediate points in Asia.

http://www.dpm.gov.au/wt/releases/2015/January/wt013_2015.aspx