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Australia has secured open skies deals with Canada and Malaysia, as well as increased capacity with several other countries under new and updated bilateral air service agreements (ASAs).
Canada and Malaysia will have unlimited passenger capacity to and from Australia starting in 2026, with an immediate increase to 50,000 weekly seats to Malaysia and 50 weekly flights to Canada.
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Currently, Canadian airlines can operate 9,000 seats per week into Australia’s four major airports of Sydney, Melbourne, Brisbane and Perth, with unlimited flights into other airports. Malaysian carriers can fly 36,000 seats per week into major airports and unlimited capacity into others.
Passenger capacity for Hong Kong has been increased to 84 flights per week, up from 70, with no limits on cargo services, while passenger capacity to Chile will be doubled to 8,000 weekly seats by 2025.
Additionally, the government has signed Australia’s first bilateral ASAs with Latvia, Mongolia and Rwanda, which would allow 14 passenger services per week to each country and unlimited cargo flights.
“We’re expanding our international aviation network to increase competition and deliver a better experience for Australian travellers,” Transport Minister Catherine King said.
“Whether travelling to these countries or using them as stepping stones to the rest of the world, each of these arrangements represents a stronger connection with our global market – for travel, trade and tourism.
“We committed to this in our Aviation White Paper and today we are delivering on that commitment – landing additional capacity in the international sector.”
There are now 110 bilateral air service agreements in place between Australia and other countries, and the government this year upgraded agreements with Türkiye, Vietnam and Sri Lanka.
According to Trade and Tourism Minister Don Farrell, the arrangements are boosting incoming passenger traffic, with arrivals from Vietnam up 49 per cent in the 12 months to August compared to pre-pandemic levels.
“Increased flights means we can welcome more visitors to Australia, boosting our tourism industry and supporting jobs and local economies, particularly in regional Australia,” he said.
“It also means we can get more cargo in the bellies of outbound flights, giving our exporters more opportunities for growth and to expand into new markets.”
The news comes as the government continues to face scrutiny over the Transport Minister’s decision last year to deny Qatar additional Australian services, with the Coalition indicating it will use Senate estimates to probe whether the Prime Minister’s office intervened on behalf of Qantas.
Qatar Airways last month announced its bid to take a 25 per cent stake in Virgin Australia, in a deal that would see Virgin wet lease planes from the Gulf carrier for new services to Doha.
As the flights would be operated under the banner of an Australian carrier, they could effectively partially circumvent the restrictions under Australia’s bilateral air service agreements with Qatar, allowing up to another 28 flights per week between Doha and the major gateways.
