1. Economy Report 2007: Australia’s International Air Transport Policy: Liberalistion, Safety and Security Australia Richard Wood Department of Transport and Regional Services

2. To inform Economies of developments in Australia’s international air transport policies in 2007. Purpose TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007

3. Guided by the Government's review of its international air services policy of 21 February 2006. See: http://www.dotars.gov.au/aviation/international/policy.aspx http://www.dotars.gov.au/aviation/international/policy.aspx Australia’s Air Services Policy TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007

4. Australia’s international market has grown by over 60 per cent in 10 years. Benefits of Liberalisation TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 International passengers to/from Australia 13.3 million passengers in 1996 21.5 million in 2006 52 international airlines served Australia in March 2007.

5. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 New International Airlines Jetstar, Tiger, Virgin Blue and Etihad now operating Indian Airways, AirAsiaX and Viva Macau to commence services Emirates and Qatar granted rights to double capacity in coming years

6. In the last year: UAE Qatar Brazil Brunei Turkey United Kingdom Bilateral Negotiations TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Croatia Hungary Spain Sri Lanka Most talks highly successful – removed major market access barriers, others allow for code share and future growth opportunities.

7. Domestic deregulation has boosted investment and allowed the entry of new airlines. 41.8 million passengers carried in year ending June 2006; 5.8 per cent growth Tiger Airways to commence stand alone domestic operations Virgin Blue (originally foreign owned) is firmly established in the market Regional Express and Skywest are flourishing under foreign ownership in the regional market Domestic Market TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007

8. Australia has 19 air services agreements with APEC economies APEC = 2/3 rds of Australia’s O/D traffic TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Asia Pacific Region

9. We are the growth region over 8 per cent growth! Asia Pacific Region TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 But we can’t get complacent – EU-US agreement opens 60 per cent of global traffic.

10. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Australia - Where to Now? Principal place of business designation Unlimited access to regional airports Open skies for freight services Bring Montreal Convention into force, consider Cape Town Convention Pursue reform in APEC, WTO and ICAO Liberalise through bilateral agreements

11. Australia is working to improve and harmonise standards. New liquids, aerosols and gels regulations Mutual recognition of Air Operator Certificates with New Zealand Bilateral Aviation Safety Agreement with the USA Safety and Security TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007

12. TPT-WG29, Chinese Taipei 29 th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Thank you!