Singapore says 'yes' to U.S. open skies initiative

Singapore says 'yes' to U.S. open skies initiative

SINGAPORE (AFP): Singapore yesterday responded favorably to an
"open skies" agreement proposed by the United States, keen to
seal further such pacts with Asian nations to enable unlimited
competition among airlines.

"Singapore looks forward to an early conclusion of an open
skies agreement with the United States," said Teo Ming Kian, a
senior official at Singapore's ministry of communications after
extensive talks with a U.S. delegation here.

So far, Singapore had shown the maximum "intellectual
leadership" on the issue and appeared willing to open itself to
competition, Mark Gerchick, U.S. deputy assistant secretary of
transportation for aviation and international affairs told
reporters.

Singapore, an Asian aviation hub, has for years supported an
open skies agreement and had proposed such an initiative between
the United States and Asian countries earlier this year,
Singapore aviation officials said.

Gerchik, accompanied by two other senior officials, is in
Singapore as part of a Asian tour to discuss the possibility of
open skies aviation pacts with the region.

They had visited South Korea and Taiwan and after Singapore
would tour Malaysia and Brunei, officials said.

Taiwan and South Korea had responded cautiously to the
Washington initiative.

Under an open skies agreement, governments agree to lift
restrictions on the number of flights or their destinations. It
will also liberalize pricing on international aviation routes, no
longer requiring an airline to seek approval for a particular
ticket price.

The pact will also allow for highly controversial so-called
fifth freedom rights which allow an airline to pick up passengers
at a transit destination and transport them to a third country.

"The conclusion of an open skies agreement between the United
States and Singapore would strengthen air links between the two
countries and allow the airlines of both sides to respond
effectively to market forces," Teo said.

"This would benefit consumers and enhance tourism as well as
bilateral trade and investments," he said.

Gerchik described the proposed U.S.-Asian open skies policy as
a turning point in aviation history, setting a paradigm for
relations between the two sides.

The United States has concluded open skies agreements with 12
European countries in the past 18 months, completely unbinding
restrictions on international air traffic rights involving
passenger and cargo services.

Cheong Choong Kong, chief executive officer of Singapore
Airlines Ltd., had proposed earlier this year that the United
States extend its open skies to cover the Asia-Pacific region,
which based on traffic growth forecast is going to be the largest
aviation market within 15 years.

He said U.S. passenger and cargo airlines operate more than 50
flights a week into Singapore, far more than in some European
countries that have open skies agreements with the United States,
including Austria, Switzerland, Denmark and Findland.

Singapore Airlines is the world's most profitable carrier.