Doubling of Chile-Australia aviation market spices things up

Media Release

WT038/2015

16 February 2015

New air service arrangements between Australia and Chile now make it possible for flights between the two countries to double—expanding the main gateway for Australians to South America.

Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss today announced the successful renegotiation and scaling up of the deal between the two countries.

“Effective immediately, designated airlines from Chile and Australia will each be entitled to operate up to 4,000 seats a week across the South Pacific,” Mr Truss said.

“This doubles the previous capacity and opens up opportunities for Australian airlines to better serve holiday-makers and other travellers to South America.”

Mr Truss said negotiations had also removed all restrictions on airlines' ability to code share—allowing Australian and Chilean airlines to build their networks and serve new markets through joint services.

“Open code share is a key objective for Australian airlines, as it enables them to build networks that support their investment in key hubs, such as Santiago,” he said.

“It will now be possible for Qantas to build on its existing code share relationship with the LATAM Airlines Group to link Australia with even more destinations across South America, via Santiago.

“The Australian Government is committed to ensuring that we have the aviation capacity necessary to meet future demand and to ensure that Australian airlines can grow and compete internationally.”