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.