Economy Report 2007:

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

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

3. TPT-WG29, Chinese Taipei 29th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Australia’s Air Services Policy 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

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

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

7. TPT-WG29, Chinese Taipei 29th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 Domestic Market • 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

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

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

10. Australia - Where to Now? TPT-WG29, Chinese Taipei 29th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 • 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. Safety and Security TPT-WG29, Chinese Taipei 29th APEC Transportation Working Group Meeting, Chinese Taipei, 9-13 July 2007 • 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

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