More flights, greater competition and increased trade between Australia and Papua New Guinea are now possible following the negotiation of a new air services agreement between our two countries.

From today, the new arrangements increase cargo capacity by thirty per cent and increase passenger capacity by ten per cent.

The new agreement provides for greater cooperation and information sharing on aviation safety and security issues.

This agreement is also a win for the North Queensland economy, particularly Cairns, which is a major gateway for flights to and from Papua New Guinea.

Airlines of both countries will now be able offer up to a total of 3,520 seats a week between Australia and Papua New Guinea, and up to 130 tonnes of weekly cargo services.

This agreement builds on our strong aviation relationship with Papua New Guinea and highlights the importance of our economic links with our nearest neighbour.

These new arrangements will allow airlines in both countries to capitalise on growing passenger demand and business opportunities, particularly in resources and oil and gas exploration in the region.

It marks further progress towards the Rudd Labor Government's objective, as outlined in our Aviation White Paper, of an open and competitive global aviation.