Take off for extra tourism and trade capacity

The Albanese Government is boosting aviation competition, trade and tourism opportunities for Australians, securing new or updated air services arrangements with seven international markets following months of negotiations.

These arrangements will allow Australian airlines to expand their international networks and international airlines to increase operations into Australia, a boost for Australian travellers and diaspora communities.

This includes unrestricted capacity with Canada and Malaysia – the first arrangements of this type since a deal struck with India in 2018.

Along with Canada and Malaysia, arrangements have landed with Hong Kong, Chile, Mongolia, Latvia, and Rwanda.

Australia now has more than 110 bilateral air services arrangements in place with other countries or economies, with today’s announcement following recent enhanced arrangements secured in the past 12 months with Türkiye, Vietnam and Sri Lanka. 

Each arrangement is negotiated to serve Australia’s national interest, with the Australian Government signing with some of our larger tourism markets, including:

• Immediate increase in available capacity for airlines to 50,000 weekly passenger seats with Malaysia, and unrestricted capacity for passenger services from 2026
• Immediate increase in available capacity for airlines to 50 weekly passenger services with Canada, and unrestricted capacity for passenger services from 2026
• Immediate increase in available capacity for airlines to 84 passenger services per week, and unlimited cargo services with Hong Kong 
• A doubling of available capacity for airlines to and from Chile by 2025

Inaugural arrangements were signed between the Australian Government and the governments of Latvia, Mongolia and Rwanda, each allowing 14 passenger services per week to and from Australia along with unrestricted dedicated cargo services. 

These arrangements deliver on our commitment in the Aviation White Paper to expand capacity under our bilateral air services arrangements ahead of demand, ensuring airlines have adequate time to plan for additional future services and add new routes to their schedules. It also aligns with our commitments to prioritise negotiations within our region.

These arrangements have already resulted in significant additional capacity being added into the Australian market, supporting growth in visitor numbers. For example, ABS data for the 12 months to August shows arrivals from Vietnam were 49 per cent higher than pre-pandemic, making it Australia’s fastest growing inbound visitor market.

Quotes attributable to Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King:

“We’re expanding our international aviation network to increase competition and deliver a better experience for Australian travellers. 

“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.” 

Quotes attributable to Senator Don Farrell, Minister for Trade and Tourism:

“Increased flights means we can welcome more visitors to Australia, boosting our tourism industry and supporting jobs and local economies, particularly in regional Australia.

“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.”