The proposal being considered by the government to allow foreign airlines unrestricted access to northern Australian air routes is a good one. In fact, it’s so good, it ought to be extended to the entire country.
The Australian aviation industry likes to argue Australia has one of the most liberal access regimes in the world. The only problem is, compared to other industries, our aviation regime remains hopelessly protectionist in refusing to allow foreign airlines unrestricted access to Australian routes unless laborious and expensive negotiations are conducted between bureaucrats to establish reciprocal access.
The industry insists any liberalisation should be conducted on a reciprocal basis. But as we know from other forms of trade negotiations, the greatest value from liberalisation comes from unilaterally lowering protectionist barriers, not waiting for other countries to reduce their barriers. The benefits to Australia of liberalisation in areas like tourism, business travel costs, perishable exports and air freight would be significant.
Needless to say, the industry incumbents are against the northern Australia proposal. That’s a good sign that it would yield plenty of benefits for the wider economy. If it’s good enough for northern Australia, it’s good enough for the rest of us, surely?
Here we are, back at the old “level playing field” defence again. The airlines that want access to Oz airports are largely subsidized (or owned) by their parent governments, who value jobs and foreign exchange a lot more than neo-liberal ideology. Most of the other big independent international airlines are in Chapter 11 bankruptcy or making phenomenal losses. Competition is futile.
End game: “Open skies” means Qantas & Virgin go bye-byes.
They will join the car & ship-building industries as museum exhibits.
Re stop protecting our Airlines.
try living in Karratha or Port Hedland and having to get to Perth to get specialist medical attention or even go to a concert.
Ticket to Rolling stones, AC/DC etc $120, air ticket +$750
Qantas and Virgin have virtual duopoly and run 3 to 4 flights a day, each which are pretty well full due to FIFO workers, yet they have to keep ticket prices up “to keep it viable”.
IF the route is not viable, why so many full flights each day?
Minimum ticket is $315 one way (sometimes available), but can vary up to $700 one way.
Both airlines are just gouging, when they fly across Australia for $199 and up and down the East coast for $99.
We can fly return Perth to Vietnam for $340, but Karratha to Perth return is twice that.
Port Hedland to Bali, flights are full and you must book return at $700+, yet from Perth, same carriers $350 return and less.
Their claims have as much credibility as their “convenience charge” for paying with credit cards.
The last time this thin end of the wedge was inserted 15 years ago it resulted in foreign airlines being allowed to carry domestic passengers between cities on their international route, eg BA from Sydney to Melbourne or Perth to Sydney.
It was claimed at the time that this would introduce the magical invisible hand of competition and lower domestic airfares.
Anyone notice that? No, nor did I.
It was claimed at the time that this would introduce the magical invisible hand of competition and lower domestic airfares.
Anyone notice that? No, nor did I.
?
Domestic airfares are a LOT lower now than they were 15 years ago.
Though Virgin would have had more to do with it.
If you live on a major route. Otherwise balls! Diddums 120 bucks to Perth??? Try Dubbo to Sydney 350 air km $189 one way. Qantas Link and Rex. I will agree to open skies when the governments of the competitors do not own them or bankroll them. Otherwise nope nope nope because we would be a dope dope dope.