European transport ministers have approved a mandate for the European Commission to negotiate with the Rudd Labor Government on a potential ‘open skies’ agreement between Australia and the European Union (EU).

Minister for Infrastructure, Transport, Regional Development and Local Government, the Hon. Anthony Albanese says this is an important step towards a historic open skies agreement which could deliver greater competition, more flights and lower air fares between Australia and EU countries.

“An ‘open skies’ agreement could remove many – if not all – of the existing regulatory limitations on Australian and European airlines operating between our two continents – allowing them to offer more flights and a wider range of services at the most competitive prices,” says Albanese.

“Such an outcome would benefit Australian businesses and travellers.

“Currently, flights from Australia to Europe are limited by outdated bilateral agreements. For example, our carriers are only allowed to offer three flights per week to Paris.

“The agreement will be broader than market access issues, and is likely to address competition, safety and security and environmental protection issues,” he says.

The EU is Australia’s largest aviation market. In 2007, 4.5 million passengers travelled between Australia and the EU – an average of 43,780 passengers each way per week.

Negotiations for an ‘open skies’ agreement will build on Australia’s ‘Horizontal’ air services agreement with the EU.

The Horizontal agreement, signed in April 2008, recognises the existence of a single European market for air transport links to and from Australia.

Source: Supply Chain Review

AUSTRALIA is to have a new domestic airline - VivaJet - to rival Qantas and Virgin Blue, both of which are slashing unprofitable regional routes to combat soaring fuel prices.

VivaJet, based in Melbourne, is expected to start operations in November, promising a “better” service with complimentary light meals and drinks and cheap fares.

It is believed that two former Qantas executives are advising VivaJet.

The Sydney-based Centre for Asia Pacific Aviation (CAPA) said the new airline planned to start passenger and cargo services later this year, using the 70-seat Embraer E-170 and 90-seat E-190 regional passenger jets (E-Jets), 72-seat ATR-72 turbo-props and a Airbus A300 Freighter aircraft.

Virgin Blue was the first to introduce E-jets on the east coast and Canberra services late last year.

VivaJet will be headed by Cenap Kathyaoglu, who has been in the tourism and aviation industry for more than 20 years and helped to develop several companies in Europe and the US in the highly competitive airline sector.

The new airline is defying soaring fuel prices, falling consumer confidence and the volatile equity market.

VivaJet has been registered as a private Australian company in Melbourne since 2006 and is backed by German investment partners.

It faces a major hurdle to break the stranglehold that Qantas and, more recently, Virgin Blue have gained on the premium business market in Australia.

VivaJet is expected to launch with four E-190s, followed by one E-170, with plans for an extensive network covering Melbourne, Sydney, Brisbane, Canberra, Adelaide, Hobart and the Gold Coast.

An informed source said that at least eight Embraer aircraft may be leased by VivaJet, a Brazilian maker renowned for its cost-effective approach.

Slot allocation has been granted at all destinations, but the airline will progressively roll out its network, with an initial focus on Sydney, Gold Coast and Melbourne.

However, what has not been revealed is which airports the airline will operate from.

Some suggest it may use Sydney’s Bankstown.

CAPA said the airline had plans to deliver a standard of domestic air travel “never experienced before in Australia. And all this on a low-fare basis, including complimentary meals and drinks”.

The last airline to offer premium services and low prices was Ozjet.

It lasted less than six months, with many routes having more flight attendants than passengers.

In fact, the only successful major start-up in the past two decades was Virgin Blue, which flourished after the collapse of Ansett Australia in September 2001.

Also on the radar is the Indonesian carrier Lion Air, which plans to commence operations later this year using a fleet of six extended-range B737-900ERs.

Lion will hold 49 per cent of the new company, which is to be 51 per cent owned by Brisbane-based Australian charter operator, SkyAirWorld.

Initially, the airline is looking at international routes to Indonesia and Southeast Asia, but is also considering operating some domestic destinations.

Source: Teresa Ooi and Geoffrey Thomas,  The Australian News

Australia’s passport control process is becoming more streamlined with the introduction of a new automated solution, SmartGate. If you have an Australian or New Zealand ePassport and are aged 18 years or over, SmartGate gives you another choice over the way you are processed. All Australian passports issued or renewed after 24 October 2005 are ePassports. SmartGate uses the data in your ePassport, along with face recognition technology to perform the customs and immigration checks.

SmartGate is already operating in Brisbane and Cairns international airports, and will be installed at Melbourne International Airport soon, with Sydney International Airport to follow later this year. To find out more about SmartGate, email smartgate@customs.gov.au or visit http://www.customs.gov.au/site/page.cfm?u=5552

The Qantas A380 is now on sale with the first passenger flight between Melbourne and Los Angeles taking off on 20 October 2008. With supremely stylish and comfortable interiors designed by Qantas Creative Director Marc Newson, the Qantas A380 sets a new benchmark in air travel.

The new Qantas A380 is now on sale for selected flights from Sydney and Melbourne to Los Angeles for travel from late October 2008. The Qantas A380 is also on sale for selected flights from Sydney to Singapore and London for travel from mid January 2009. Even more ways for Frequent Flyers to earn and redeem points. Experience the new Qantas A380 before you fly.