Jul 15, 2011
By Adrian Schofield adrian_schofield@aviationweek.com

The New Zealand government has authorized negotiations to begin for new air service agreements with Brazil, China and other nations in east Asia and South America.
The talks will be aimed at allowing greater market access to New Zealand and overseas airlines. “We are looking to remove restrictions on current agreements, and begin negotiations with other countries to create new agreements,” Associate Transport Minister Nathan Guy says in a press statement.
New Zealand’s cabinet has given negotiators a mandate to enter discussions with China and Brazil, but the government is not revealing the identity of the other eight nations. India and Indonesia are probably on the list, one industry source says.
The existing China and Brazil agreements are both restricted in terms of frequencies. A spokesman for Guy’s office tells Aviation Week that the New Zealand objective, consistent with its longstanding policy, is to pursue “open skies” deals. This involves “seeking to remove restrictions of capacity, routes, traffic rights, tariffs, and airline ownership.” However, “we recognize that some countries still prefer a more restrictive approach,” the spokesman adds.
Seven weekly flights by carriers of each nation are allowed under the existing New Zealand-China air services agreement. Currently Air New Zealand and China Southern fly direct routes between the two countries. Air New Zealand uses all seven of its frequencies, and China Southern plans to use all of the Chinese allotment when it expands to daily service later this year.
The agreement with Brazil allows three weekly flights for each side, but no carriers currently serve this market non-stop.
While it is not clear whether any airlines have been pushing for opening specific markets, the New Zealand government “has a strong interest in promoting trade and tourism with growing regions like East Asia and South America,” the spokesman for Guy’s office says. In the press statement, Guy says that Auckland “has the potential to play a greater role as a stopover between these two regions.”
Auckland and Christchurch airports both reacted enthusiastically to news of the negotiation mandate. An Auckland Airport spokesman notes that China and Brazil are both growth economies, and it is widely accepted that these are two markets with great potential for outbound travel.
For this reason, Auckland Airport is keen to see the New Zealand government gain more access to China and Brazil. Even though airlines are focused on developing their existing New Zealand-China routes, the airport would like them to have the ability to increase service if they desire, the airport spokesman says.
Photo: Air New Zealand
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