Analysis of Bilateral Air Services Agreement Liberalization in Australia

This paper examines an assessment of the level of air transport services liberalization in Australia in order to generate recommendations on what key market access features of Air Services Agreements should be revised to reflect the changes in air transport characteristics, including the increase in air cargo traffic during the COVID-19 period. The different variants of the key market access features of ASA, levels of air transport liberalization and the extent of air transport service liberalization between Australia and 104 partner countries were analysed using descriptive study, comparison analysis and the ALI index. The ALI index is calculated for four different weighting schemes. Passenger capacity in 41 bilateral agreements contain restrictions of frequency, capacity and aircraft type. The analysis of cooperative arrangements indicated that Australia has a single aviation market only with New Zealand. The cargo capacity analysis identified different types of capacity restrictions based on weekly cargo service, volume, destinations, designated airline and aircraft types. In conclusion, cargo capacity analysis illustrates that the level of liberalization is high, but the air services agreements between Australia and other countries in the first and second cargo capacity groups should be revised to reflect the increase in air cargo traffic during COVID-19.

Keywords: air services; bilateral agreements; liberalization; Air Liberalization Index; comparison analysis; COVID-19
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