More flights, greater competition and potentially lower fares on routes between Australia and Vanuatu are now possible following the signing of a new bilateral air services agreement.

Finalised in time for the summer holidays, the new arrangements immediately increase the available seats on routes between our two countries by almost 50 per cent.

The airlines of both countries will immediately be able to offer up to 2,000 seats per week between Australia’s major gateway airports of Brisbane, Sydney, Melbourne and Perth and this South Pacific island nation.

Previously, seat allocations were capped at 1,400.

The new agreement also allows for capacity entitlements to increase in stages to 4,000 weekly seats from 1 December 2016, a measure which gives airlines the certainty they need to plan and grow their services in response to demand.

In the case of air cargo, unlimited capacity, route and traffic rights are now available for dedicated services, a move which will allow airlines to expand their freight operations to better facilitate the flow of high value commodities to, from and via this key Pacific market.

Significantly, the new agreement includes an overhaul of the treaty framework to include new aviation safety and security provisions design to strengthen the ability of relevant safety and security agencies to oversight the operations of our airlines.

The new agreement marks further progress towards the Government’s objective, as outlined in our Aviation White Paper, of a safe, open and competitive international aviation market.