Open Skies Agreement With Chile

  • Maurice Williamson

A new air services agreement which has been reached with Chile includes liberal airline investment provisions and confirms the right of code-sharing, including on third-country airlines, Minister of Transport Hon Maurice Williamson announced today.

"The travel, investment and business sectors of both countries will potentially benefit from the new agreement," the Minister said.

"Chile is of major importance to New Zealand being our second largest investment destination after Australia at NZ$8 billion and is our largest market in South America for technology exports.

"This agreement is consistent with the Bogor Declaration of common resolve in which APEC economies commit themselves to free and open trade in goods, services and investment no later 2010, and in case of developing economies no later than 2020.

"New Zealand is placing an increasing importance on its relationships with countries in South America," the Minister said.

"Recent commercial announcements, point to significant changes in air links between Australasia and South America over the next twelve months.

"The agreement with Chile complements the open skies agreements which have been concluded with Brunei, Malaysia, Singapore, the United States and the United Arab Emirates," Mr Williamson said.

The agreement with Chile represents a substantial liberalisation of existing arrangements. Both countries airlines will be able to operate between and beyond the two countries without restriction as to route or capacity. The exercise of traffic rights from third countries is, however, subject to the approval of the aeronautical authorities of the two countries.

Airlines will not be required to file fares for approval although the authorities may require the airlines to notify them of the fares they are charging. The new agreement will replace an existing one which came in to force in 1992.