WASHINGTON - The open-skies model was raised to a new level in Washington yesterday.
Representatives of five nations, including New Zealand, signed the Multilateral Agreement on the Liberalisation of International Air Transportation. The United States, Singapore, Chile and Brunei are part of the agreement.
US Transportation Secretary Norman Minetasaid the agreement marked the beginning of the 21st century era in the liberalisation of international aviation.
In expanding the bilateral open-skies model to a multinational level, the new deal helped set the terms for the global market-place.
Discussions have begun on expanding membership of the multilateral agreement to other Asia-Pacific Rim countries.
Australia was involved in the negotiations but dropped out just before the Apec leaders' summit in Brunei last year.
Transport Minister Mark Gosche said New Zealand's most significant achievement in negotiating the deal was to gain flexible airline ownership provisions consistent with our international air transport policy.
"By easing the ownership requirements contained in traditional bilateral agreements, airlines will have improved access to capital markets," Mr Gosche said.
In countries such as New Zealand, which had small capital markets, the ability for airlines to get finance from overseas sources was important to sustain their ability to offer modern and efficient services.
Aviation is now governed by thousands of bilateral agreements among more than 180 countries.
By joining one multilateral pact, countries can avoid prolonged negotiation of various agreements.
