NEW ZEALAND - BRUNEI DARUSSALAM AIR SERVICES AGREEMENT

"New Zealand and Brunei Darussalam have negotiated what are almost certainly the most liberal air services arrangements in the world", the Minister of Transport, Hon Maurice Williamson, announced today.

The new arrangements with Brunei are the most recent in a series of "open skies" deals concluded by New Zealand and give the airlines of each side the opportunity to benefit from an open route schedule, unlimited capacity and full code-share rights.

In addition to those provisions, New Zealand airlines have reciprocally gained the rights to establish operations in Brunei, and from there carry passengers and freight to other destinations, without having to touch New Zealand. This would be subject to the necessary rights being obtained from the countries to which the services would operate.

The exchange of reciprocal rights also gives airlines of Brunei, as an extension of an international service, the opportunity to carry strictly domestic passengers in New Zealand, a right referred to as cabotage. The only other country with which New Zealand has exchanged cabotage rights is Australia.

"In the arrangements we have reached, I believe New Zealand and Brunei offer a model for like-minded countries to adopt," the Minister said.

"Within the APEC context, New Zealand and Brunei have grasped the nettle and taken the lead in ensuring that the air services sector is able to play its part in achieving the free flow of goods, services and investment between the soon to be 21 member economies.

"New Zealand and Brunei have developed a very close relationship over the years, and I look forward to the signing of our new Air Services Agreement.

"Services to New Zealand by Royal Brunei Airlines would be welcome, and would provide additional service options and competition, especially on the important New Zealand - Singapore route," Mr Williamson said

The new Agreement, which is being applied provisionally in anticipation of its signing, replaces that signed in 1995, at the time of the State visit to New Zealand by His Majesty the Sultan of Brunei.