- Air Services Agreements: Saudi Arabia, Colombia, Peru
- This chapter considers the following three agreements:
- Agreement between the Government of Australia and the Kingdom of Saudi Arabia relating to Air Services,
- Agreement between the Government of Australia and the Government of the Republic of Colombia relating to Air Services
- Agreement between the Government of Australia and the Government of the Republic of Peru relating to Air Services.
- The Agreements were referred to the Committee in the 47th Parliament, but lapsed due to the prorogation of Parliament. They were re-referred on 29 July 2025.
- The Committee held a public hearing in Canberra on 27 October 2025. The details of the hearing and witnesses can be found in Appendix B. The transcript of evidence from the public hearing can be accessed through the Committee’s website.
Agreement between the Government of Australia and the Kingdom of Saudi Arabia relating to Air Services
Overview and background
2.4The proposed Agreement establishes a treaty-level air services relationship between Australia and Saudi Arabia for the first time. It will allow the airlines of Australia and Saudi Arabia to operate international air services between the two countries. The proposed Agreement will facilitate trade and tourism between the two countries and will provide opportunities for airlines to operate options for expanded air travel.
2.5Australia and Saudi Arabia’s friendly relationship is underpinned by strong people-to-people contacts, trade and commercial ties and shared membership of the G20. As part of Saudi Arabia’s economic reform plans, it has introduced a new tourism e-visa for Australians wishing to travel to the country.
2.6Education-related travel is the highest value category of exports to Saudi Arabia (AUD$260.0 million), while fertilisers are the highest value category of imports from Saudi Arabia (AUD$674.0 million).
Justifications
2.7The proposed Agreement grants access for Australian airlines to the Saudi Arabia aviation market and allows for the establishment of air services between the two countries. The proposed Agreement will enable Australian and Saudi Arabia airlines to provide services between any point in Australia and any point in Saudi Arabia, should they choose to, and based on capacity levels decided between the aeronautical authorities of the Parties.
2.8Australian travellers and businesses, particularly in the tourism and export industries, could benefit from the proposed Agreement through the opening of increased commercial opportunities.
Obligations
Designation, Authorisation, Suspension and Revocation
2.9Article 2 allows each Party to designate any number of airlines to conduct international air transportation. Upon receipt of a properly made designation, a Party is required to grant appropriate authorisations without delay.
Grant of Rights
2.10Article 3 grants the airlines of each Party the right to fly across the other Party’s territory without landing and to make stops in its territory for non-traffic purposes (such as refuelling). The Article does not authorise airlines of one Party to carry domestic traffic within the territory of the other Party.
Application of Laws
2.11Article 4 requires that a Party’s airlines comply with the other Party’s laws, regulations and rules relating to the operation and navigation of aircraft as well as the entry and exit of passengers, crew, cargo and aircraft when entering, within or leaving the territory of that Party. In applying their laws, Parties are prevented from giving preference to their own or any other airline involved in similar international air transportation. Additionally, Parties must not subject passengers, baggage, and cargo transiting directly through the territory of either Party to examination except in limited circumstances.
Aviation Safety
2.12Article 5 requires each Party to recognise certificates of airworthiness, competency and licences issued or rendered valid by the other Party, provided they conform to the standards established by the International Civil Aviation Organisation (ICAO).
Aviation Security
2.13Article 6 requires both Parties to protect the security of civil aviation against acts of unlawful interference and, in particular, to conform with multilateral conventions relating to aviation security. In the event of an incident or threat affecting an aircraft’s safety, Parties must facilitate communication to address the incident.
User Charges
2.14Article 7 requires each Party to use its best efforts to encourage those responsible for the provision of airport, airport environment, air navigation, and aviation security facilities and services to levy charges on airlines that are reasonable, non-discriminatory and equitably apportioned.
Statistics
2.15Article 8 provides that the aeronautical authorities of one Party may require a designated airline of the other Party to provide statistics related to the traffic carried on services performed under the proposed Agreement.
Customs Duties and Other Charges
2.16Article 9 provides the circumstances in which Parties must exempt aircraft, aircraft equipment, and other items from all import restrictions, customs duties, excise taxes, and similar fees and charges imposed by national authorities. None of the exemptions provided for in this Article extend to charges related to the cost of services provided to a Party’s airline in the other Party’s territory.
Tariffs
2.17Article 10 allows the designated airlines to determine their own fares.
Capacity
2.18Article 11 ensures both Parties enjoy the fair and equal opportunity to operate services in accordance with the proposed Agreement. Passenger and cargo capacity to be operated by the designated airlines of each Party is mutually determined by the aeronautical authorities of both Parties.
Commercial Opportunities
2.19Article 12 requires that each Party’s airlines have the right, in the other country’s territory, to establish offices, to engage in the sale and marketing of air transportation, and to use the services and personnel of any organisation operating in the Party’s territory. Designated airlines are permitted to perform their own ground handling or offer their services as ground handling agents, subject to safety restrictions. Additionally, each Party’s airlines must have equal opportunity to secure slots and receive no less favourable treatment than any other airline.
Competition
2.20Article 13 states that the competition laws of each Party shall apply to the operation of the airlines within the jurisdiction of the respective Party.
Consultation and Amendment
2.21Article 14 states that either Party may at any time request consultations with the other Party on the implementation, interpretation, application or amendment of the proposed Agreement. Consultations are required to begin within a period of 60 days of the date of receipt of the request, apart from consultations on Articles 2, 5 and 6.
Settlement of Disputes
2.22Article 15 provides a process for dispute resolution and mediation. If the Parties fail to resolve the dispute by consultation, negotiation or mediation, either Party may request arbitration of the dispute. Each Party may nominate its own arbitrator and a third arbitrator from a Third State would be appointed by those arbitrators, creating an arbitral tribunal.
Withdrawal or denunciation
2.23Article 16 provides that either Party may at any time give notice in writing to the other Party of its decision to terminate the proposed Agreement.
Registration with ICAO
2.24Article 17 states that this proposed Agreement and any future amendments must be registered with the International Civil Aviation Organisation.
Entry into Force
2.25Article 18 states that this proposed Agreement will enter into force once it has fulfilled the necessary measures in accordance with relevant laws and regulations in each Party’s country.
Consultation
2.26Ahead of negotiations, the Department of Infrastructure, Transport, Regional Development, Communications and the Arts consulted State and Territory governments as well as industry, predominantly airports and airlines. Comments were received from a number of stakeholders including Qantas Airways, Virgin Blue (now Virgin Australia), and South Australia’s Department for Transport, Energy and Infrastructure. Stakeholders who provided comments supported the negotiation of an air services agreement with Saudi Arabia with a view to opening market access for airlines in both countries.
Implementation
2.27The proposed Agreement will be implemented through existing legislation. No amendments to existing legislation are required for the implementation of the proposed Agreement.
Costs
2.28No direct financial costs to the Australian Government are anticipated in the implementation of the proposed Agreement. There are no financial implications for State or Territory governments.
Termination
2.29Article 16 provides that either Party may at any time give notice in writing to the other Party of its decision to terminate the proposed Agreement. Thereafter the Agreement would terminate twelve months after the date of receipt of the notice.
Future treaty action
2.30Article 14 provides that the proposed Agreement may be amended or revised by agreement in writing between the Parties.
Ratification status
2.31The text of the proposed Agreement was signed on 27 April 2017 and has been applied by the two countries on an administrative, non-legally binding basis, under the auspices of a Memorandum of Understanding (MoU) signed by the aeronautical authorities of Australia and Saudi Arabia on 10 April 2011.
Agreement between the Government of Australia and the Government of the Republic of Colombia relating to Air Services
Overview and background
2.32Australia and Colombia have maintained diplomatic relations since 1975 and cooperate on a range of issues of mutual interest, such as energy, infrastructure, education, and transnational crime. In 2024, Australia’s exports of goods and services were worth AUD$1,384.8 million. The top three highest grossing areas were education-related travel (AUD$1,271 million), recreational travel (AUD$42 million), and business-related travel (AUD$17 million).
2.33Australia and Colombia are both Parties to the Convention on International Civil Aviation (Chicago Convention of 1944) first signed in Chicago in 1944, which regulates international air travel. The Chicago Convention of 1944 provides that international airlines cannot serve a market between two countries without an air services agreement in place. The proposed Agreement was made in accordance with and pursuant to the Chicago Convention of 1944.
2.34The proposed Agreement was signed on 14 February 2019 in Bogotá and will establish an inaugural treaty-level air services relationship between Australia and Colombia. It grants access for designated Australian airlines to the Colombian aviation market and allows for the establishment of air services between the two countries.
Justification
2.35The proposed Agreement will allow carriers of Australia and Colombia to provide direct airline services between any point in Australia and any point in Colombia.
2.36The proposed Agreement will enable trade and tourism between Australia and Colombia. There are potential benefits for Australian travellers and Australian businesses through the opening of increased commercial opportunities, particularly in the tourism and export industries.
Obligations
Designation, Authorisation and Revocation (Article 2)
2.37Each Party can designate any number of airlines to conduct international air transport between the Parties. Both Parties are required to grant appropriate authorisations when receiving a properly made designation from the other Party without delay. However, both Parties can also refuse authorisation of an airline’s operations and impose conditions on the airlines operation if it fails to meet, or operate in accordance with, the conditions set out the agreements.
Grant of Rights (Article 3)
2.38Each Party grants the airlines of the other Party the right to fly across its territory without landing and to make stops for non-traffic purposes such as refuelling. Each designated airline also has the right to operate routes between the Parties as specified in the Annex to the proposed Agreement. Notwithstanding specified provisions/exemptions, the Agreement would also apply to non-scheduled international flights.
2.39The Agreement does not allow for the airlines of one Party to operate domestic air services within the territory of the other party.
Application of Laws (Article 4)
2.40Each Party’s designated airlines must comply with the other Party’s laws and regulations relating to the operation and navigation of aircraft when they are entering, within, or leaving the territory of the Party.
2.41Passengers, crew, baggage, and cargo transported by designated airlines will be subject to relevant immigration, aviation security, and customs and immigration measures when entering, within or leaving the territory of the other Party.
2.42Parties are required to apply the laws and regulations relating to the operation and navigation of aircraft consistently and without bias.
Recognition of Certificates (Article 5)
2.43Each Party is required to recognise the certificates of airworthiness, competency and licences issued or rendered valid by the other Party for the other Party’s designated airlines.
2.44However, each Party can refuse to recognise certificates and licences held by its own designated airlines that were issued by the other Party.
Safety (Article 6)
2.45Each Party can request consultations at any time concerning safety standards in the other Party. These consultations should take place within thirty days of the date the request is issued.
2.46If one Party finds that the safety standards of the other Party are not in line with those required under the Chicago Convention of 1944, the Party must notify the other Party of the corrective action required to meet the Chicago Convention of 1944 standards. If the other Party fails to take appropriate corrective action within fifteen days, there may be grounds for the issuing Party to revoke or limit the authorisation of the affected designated airlines.
2.47Each Party may, in their own territory, inspect the conditions of their own and the other Party’s aircraft and equipment to ensure these conform to ICAO standards.
2.48Each Party is also able to take immediate action where necessary to ensure the safety of an airline operation.
Aviation Security (Article 7)
2.49Each Party is required to protect the security of civil aviation against acts of unlawful interference and to act in conformity with multilateral conventions relating to aviation security, including ICAO provisions.
2.50Parties are required to adequately protect aircraft and inspect passengers, crew, baggage, cargo and aircraft stores before and during boarding or loading. Each Party shall consider positively a request from the other Party for reasonable special security measures to meet a particular threat.
User Charges (Article 8)
2.51Each Party is required to encourage those responsible for the provision of airport, airport environmental, air navigation, and aviation security facilities and services to impose charges on designated airlines that are reasonable, not unjustly discriminatory, equitably apportioned, and not higher than those imposed on other international airlines. User charges should reflect but not exceed the actual cost of providing the air services.
Statistics (Article 9)
2.52Each Party may be required to provide statistics related to services performed under the proposed Agreement to the aeronautical authorities of the other Party.
Customs Duties and Other Charges (Article 10)
2.53In certain circumstances, Parties must exempt aircraft, aircraft equipment, and other items from all import restrictions, customs duties, excise taxes, and similar fees and charges usually imposed by national authorities. These exemptions apply to aircraft, component parts or equipment, and stores (including fuel and food and beverages) used to support the airline’s operation of international air transportation.
Tariffs (Article 11)
2.54The designated airlines of each Party must be allowed to set their own airfares.
Capacity (Article 12)
2.55The designated airlines of each Party must be allowed to enjoy fair and equal opportunities to operate services in accordance with the proposed Agreement.
2.56The passenger and cargo capacity of designated airlines will be agreed by the aeronautical authorities of the parties.
Commercial Opportunities (Article 13)
2.57The designated airlines of each Party have the right to establish offices, engage in sales and marketing of air transportation, and use local services and personnel in the other Party's territory. Airlines may also bring and maintain staff as required to support their operations.
2.58Under certain provisions, designated airlines may enter into codeshare arrangements with other appropriately authorised airlines, or use aircraft leased from other companies.
Intermodal Services (Article 14)
2.59The designated airlines of each Party may use any surface transport (for example, road or rail transport) in the other Party’s territory in order to provide intermodal connections for both passenger services and cargo.
Consultations (Article 15)
2.60Either Party may request consultations with the other Party at any time on the implementation, interpretation, application or amendment of the proposed Agreement. Excluding provisions in Articles 2, 6 and 7, or unless otherwise mutually decided, this consultation is required to commence within 60 days of the receipt of a request.
Settlement of Disputes (Article 17)
2.61If the Parties cannot resolve a dispute by consultation (as per Article 15), then either Party may request that the dispute is subjected to an arbitration process, where each Party nominates its own arbitrator and a third arbitrator would be appointed by those arbitrators creating an arbitral tribunal.
2.62The findings of the tribunal would be final and binding upon the Parties, with the expenses of arbitration shared equally.
Non-discrimination (Article 18)
2.63All provisions of the proposed Agreement must be applied on a non-discriminatory basis, including (but not limited to) prices, safety, security and slots or the exercise of traffic rights.
Registration with ICAO (Article 20)
2.64Once the proposed Agreement and any subsequent amendment enters into force, it must be registered with ICAO.
Consultation
2.65Prior to the negotiation of the proposed Agreement, extensive consultations were held with a range of industry bodies and State and Territory Government agencies. The full list of stakeholders is included in the National Interest Analysis (NIA) of the proposed Agreement.
2.66Comments were received from Qantas, Sydney Airport and the Tourism and Transport Forum and were supportive of the negotiation of an air services agreement with Colombia to open market access for airlines in both countries.
Implementation
2.67The proposed Agreement will be implemented using existing legislation, including the Air Navigation Act 1920, the Civil Aviation Act 1988, and the International Air Services Commission Act 1992.
2.68Under the proposed Agreement, The Civil Aviation Safety Authority (CASA) and the Department of Home Affairs have the scope and ability to enforce ICAO safety standards and apply relevant Australian regulatory frameworks and legislation to any Colombian airlines wishing to operate services to Australia.
Termination
2.69Either Party may give notice in writing at any time to the other Party of its decision to terminate the proposed Agreement. The issuing Party must also simultaneously lodge a notice of termination with ICAO. The proposed Agreement would terminate one year after the date of receipt of the notice of termination by the other Party.
2.70Termination of the proposed Agreement by Australia would be subject to Australia's domestic treaty-making process, including consideration by JSCOT.
Costs
2.71No direct financial costs to the Australian Government are anticipated in the implementation of the proposed Agreement. There are no financial implications for state or territory governments.
Future treaty action
2.72The proposed Agreement may be amended or revised by agreement in writing between the Parties. If a new multilateral treaty concerning air transportation comes into effect for both Parties, the Agreement is automatically considered to be amended as required to conform with the provisions of the new treaty.
2.73Any future amendment to the proposed Agreement would be subject to Australia's domestic treaty-making process, including consideration by JSCOT.
Ratification status
2.74The proposed Agreement was signed on 14 February 2019 but is not yet in effect. A non-legally binding MoU was signed in 2017.
Agreement between the Government of Australia and the Government of the Republic of Peru relating to Air Services
Overview and background
2.75The proposed Agreement establishes a treaty-level air services relationship between Australia and Peru for the first time. It will allow the airlines of Australia and Peru to operate international air services between the two countries. In doing so, it could facilitate trade and tourism between the two countries and provide greater opportunities for airlines to expand air travel options.
2.76Key areas of engagement between Australia and Peru include mining, education, agriculture and tourism. A Peru-Australia Free Trade Agreement (PAFTA) has been in force since 2020, and both countries are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Education-related travel is the highest value category of exports to Peru (AUD$110.0 million), while recreational travel is the highest value category of imports from Peru (AUD$87.0 million).
2.77The proposed Agreement is based on Australia’s model air services agreement.
Justifications
2.78Under Article 3 of the Chicago Convention of 1944, international airlines must have an agreement to serve a market between two countries.
2.79The proposed Agreement grants Australian airlines access to the Peruvian aviation market. The establishment of air services between the two countries will be allowed, with the proposed Agreement enabling Australian and Peruvian carriers to provide services between any point in Australia and any point in Peru, should they choose to.
2.80Australian travellers and Australian businesses, particularly in the tourism and export industries, could benefit through the opening of increased commercial opportunities. Currently, the only direct flight to Latin America is the Sydney to Santiago, Chile route.
Obligations
Designation of airlines, authorisation and revocation (Article 2)
2.81Each Party has the right to designate airlines to conduct international air transportation in accordance with the Agreement. Each Party shall grant the appropriate authorisations to enable this without delay as long as the provisions set out in the Agreement are met. If conditions are not met, either Party may withhold, revoke, suspend or limit authorisations at any time, with consultation required in specific circumstances.
Grant of rights for conduct of air transportation (Article 3)
2.82The airlines of each Party have the rights to fly across, make stops within and (for designated airlines as described in Article 2) to operate agreed services in the territory of the other party. Agreed services include taking on board and discharging passengers, cargo and mail. Annex 1, which specifies the routes for agreed services, allows travel between all points in Peru and all points in Australia. Neither Party has the right to carry domestic traffic services within the other Party’s territory.
Application of Laws (Article 4)
2.83A Party’s airlines must comply with laws, regulations and rules relating to operation and navigation of aircraft, and any laws, regulations and rules relating to entry and exit of passengers, crew, baggage, cargo and aircraft while entering, within or leaving the other Party’s territory. Neither Party can preference their own or any other airline involved in similar international air transportation in the application of rules and regulations.
2.84Passengers, baggage or cargo in transit through the territory of a Party must not be subjected to examination except in special circumstances and are exempt from customs duty.
Recognition of certificates and licenses (Article 5)
2.85Each Party shall recognise certificates of airworthiness, certificates of competency and licences issued or validated by the other Party and still in force, as long as they meet the minimum standards of the Chicago Convention of 1944. Each Party can refuse to recognise certificates and licenses issued to its own nationals by the other Party.
Safety and aviation security (Article 6 and 7)
2.86Each Party can request safety consultations, which must take place within 30 days. A Party must notify the other Party of any required corrective action, which must be undertaken within 15 days.
2.87Each Party may inspect aircraft of the other Party to verify documents and ensure the condition of the aircraft and equipment conform to ICAO standards (ramp inspections). A Party may infer that there are safety concerns if the airline refuses to undertake ramp inspections.
2.88Each Party is obliged to protect against acts of unlawful interference with civil aviation, to conform to security measures established by ICAO, and to ensure adequate inspections of passengers, crew, baggage, cargo and aircraft stores prior to boarding or loading. Any differences between regulations on security must be communicated. Each Party must communicate with the other Party about any security incidents.
2.89A request for reasonable special security measures to meet a particular threat must be positively considered by the other Party. Each Party must sympathetically consider requests for aeronautical authorities to assess security measures within the territory of the other Party.
2.90A Party can request a consultation if there is a difference of security regulations or if they suspect the other Party is not meeting requirements of the Agreement. In the latter case, consultations must start within 15 days of receipt, and agreement must be found within 15 days from the start of consultation.
User charges, statistics and tariffs (Articles 8, 10 and 11)
2.91User charges must be non-discriminatory and equitably apportioned, and must reflect but not exceed the full cost to provide facilities and services. Charges should be levied on foreign airlines at a rate no higher than the rate imposed on a Party’s own airlines operating similar international services.
2.92Designated airlines may be required to provide statistics related to traffic carried on air services as determined by the aeronautical authorities of each Party on a non-discriminatory basis.
2.93Each airline is allowed to determine its own airfares.
Customs duties (Article 10)
2.94Aircraft of designated airlines providing agreed services are required to be admitted temporarily free from duty, and certain items that are used for operation or repair are also exempt from duty or similar taxes. These items shall not be used for purposes other than air services.
Capacity (Article 12)
2.95Designated airlines are provided fair and equal opportunities to operate agreed services. The aeronautical authorities of each Party are to determine passenger and cargo capacity provided by designated airlines.
Commercial opportunities (Article 13)
2.96Airlines of each Party are given the right to establish appropriate offices and to engage in the sale of air transportation in the other’s territory. Each Party shall grant necessary employment authorisations or visas for necessary staff with minimal delay. Each airline will have the right to sell air transportation and pay local expenses in the currency of the territory or other convertible currencies.
2.97Designated airlines have the right to perform their own ground handling or contract with their choice of agent, and airlines must be treated in a non-discriminatory manner with regards to ground handling.
2.98Airlines may use leased aircraft, but this may not give the lessor access to traffic rights that it would not exercise otherwise in the case of aircraft leasing to or from third countries.
Codeshare and intermodal services (Articles 14 and15)
2.99Airlines carrying out agreed services are allowed to use cooperative marketing arrangements, such as codesharing, with other appropriately authorised airlines. These must meet normal requirements for such arrangements and arrangements must be clear to purchasers. Airlines of a Party may market codeshare services on domestic flights within the territory of the other Party, provided they are part of an international journey. Codesharing arrangements shall be governed by each Party’s national legislation.
2.100Designated airlines are permitted to use surface transport to connect to and from any points in the territories of the Parties or third countries, including through codesharing.
Competition (Article 16)
2.101Competition laws of each Party apply to the operation of airlines within its jurisdiction. A Party may unilaterally exempt commercial agreements between airlines from the application of its domestic competition law.
2.102A designated airline can determine the frequency and capacity of the international air transportation it offers based upon commercial considerations in the marketplace, in accordance with capacity arrangements. A Party may not unilaterally limit the volume of traffic, frequency of service or types of aircrafts operated by designated airlines, with exceptions for customs, technical, operational or environmental reasons.
Consultations (Article 17)
2.103Either Party is allowed to request consultations between aeronautical authorities with respect to implementation, interpretation, application or amendment of this Agreement. These shall begin within 60 days of the request, or 30 days if immediate consultations are required to avoid imminent and irreparable harm to their airline.
Amendment (Article 18)
2.104The proposed Agreement may be revised or amended by agreement in writing between Peru and Australia. The Agreement would be deemed to be amended as far as necessary to conform with any new multilateral treaty concerning air transportation that comes into effect for both Parties. Any amendment is subject to Australia’s usual domestic treaty making process.
Settlement of disputes (Article 19)
2.105Disputes that are not resolved by consultation or mediation will be submitted to arbitration. Each Party would nominate its own arbitrator, who would then appoint a third arbitrator from a third country to create a tribunal. Any decision of the tribunal is final and binding upon both Parties.
Consultation
2.106Prior to negotiation, 16 state and territory government agencies, 50 industry stakeholders (including airports, airlines and industry groups related to tourism, airlines, food and freight), and unspecified Commonwealth government agencies were advised of the proposal and invited to comment. Comments were received from Qantas, Virgin Blue, a number of Commonwealth agencies and the South Australian Government Department of Transport, Energy and Infrastructure. Stakeholders who provided comments supported the negotiation of an air services agreement with Peru to open market access for airlines in both countries.
Implementation
2.107Existing legislation is sufficient for the proposed Agreement to be implemented. No amendments are required. The proposed Agreement allows current regulatory frameworks to apply to Peruvian airlines operating services to Australia.
Costs
2.108No direct financial costs to the Australian Government are expected, nor are there financial implications for state or territory governments.
Termination
2.109Either Party can give notice in writing at any time to the other Party of its decision to terminate the Agreement, and must at the same time lodge a notice of termination with ICAO. Termination would be effective one year after date of receipt of notice by the other Party. Termination would be subject to Australia’s usual domestic treaty-making process. Without these actions, the Agreement will continue indefinitely.
Ratification status
2.110The Agreement was signed on 24 May 2017 and is in operational effect. An MoU was signed on 22 January 2013 that has allowed the Agreement to be applied on an administrative, non-legally binding basis. The Agreement shall enter into force where the parties inform each other in writing that their internal procedures are completed.
2.111On 12 January 2022, the Plenary of the Congress of the Republic of Peru approved the Legislative Resolution proposing the Agreement following its review by the Foreign Relations Commission of the Peruvian Parliament. The Commission was in support of the Agreement.
Issues
2.112As part of its scrutiny of these three Agreements, the Committee considered the procedural delays in the referral of the treaties to the Committee, as well as the operational status of existing MoUs with Peru and Saudi Arabia. The inquiries explored how treaty prioritisation is determined, the use of standardised agreement templates, and the policy of ‘capacity ahead of demand’ in shaping passenger services. Broader themes raised during the review included the economic potential of direct flights, regulatory alignment across jurisdictions, and the role of air connectivity in strengthening bilateral relationships and people-to-people links.
Treaty process
2.113The Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts (DITRDCSA) acknowledged the ‘considerable delay’ in tabling the three agreements. The delays were attributed to COVID-19 halting Australia’s international treaty processes and the domestic treaty ratification processes of treaty partners.
2.114There are MoUs in operational effect with Peru and Saudi Arabia respectively, meaning the proposed agreements with both of these countries are ‘already being observed by the relevant aeronautical authorities, pending entry into force, which has allowed designated airlines to use these opportunities, under these agreements, since the MoUs were signed, should they wish to do so’.
2.115Delays have primarily affected the Agreement with Colombia. DITRDCSA stated that due to domestic requirements in Colombia, the Agreement has ‘not been applied on an administrative, non-legally binding basis’. DITRDCSA informed the Committee that the Colombian aeronautical authorities have not yet indicated they are ready to sign but expect it to progress once the Agreement is ratified by Australia.
2.116DITRDCSA advised the Committee that they are currently working through a backlog of international air services treaties caused by the COVID-19 pandemic when all countries including Australia paused air services negotiations and treaty processes. In addition to the agreements with Colombia, Peru, and Saudi Arabia, it is expected that another eight international air services agreements will be tabled and referred to JSCOT by the end of 2025. These will include agreements with Nauru, Kiribati, Oman, and Seychelles.
2.117The Committee asked how DITRDCSA prioritises air services agreements in terms of the order in which they are referred to JSCOT for review. DITRDCSA responded that several factors are considered, including domestic stakeholder consultation, indicative interest of treaty partners, and market trends.
2.118The three proposed international air services agreements are based on a standard template maintained by DITRDCSA which is ‘updated from time to time to reflect developments in [Australia’s] aviation policies and international trends’. Any amendments or variations to the model text are the result of the negotiation processes with individual treaty partners.
2.119The Committee also questioned how passenger capacity is determined under the proposed agreements. DITRDCSA said that stakeholder consultation to gauge interest in particular markets is a key component. Agreements adhere to a general policy of ‘capacity ahead of demand’ and aim to offer at least a daily service, or a minimum of seven services per week. DITRDCSA mentioned they also consider the potential for open capacity agreements on a case-by-case basis.
Impacts on trade and Australia’s economy
2.120As previously described in this report, the proposed air services agreements will facilitate trade and tourism between Australia and the respective treaty partners. At the public hearing, DITRDCSA said that expanding Australia’s air services agreements will help facilitate the recovery of international tourism and trade after their decline during COVID-19, therefore supporting Australia’s post-COVID-19 economic recovery.
2.121The Committee raised that direct flights contribute to both investment and direct trade of goods from Australia, and questioned whether DITRDCSA expected more direct flights to and from Australia to Peru, Saudi Arabia and Colombia respectively. DITRDCSA told the Committee that taking up these opportunities is a commercial decision for airlines, but that they had heard suggestions that Saudi Arabian airlines are considering operating to Australia using their own branded planes.
2.122DITRDCSA has not been provided information about potential services from Peruvian or Colombian airlines, but said that codesharing is also an option under the agreements.
2.123Speaking of trade between Australia and the treaty partners, DITRDCSA stated that the largest drivers of trade are tourism and education, with ‘a significant number of students’ travelling between Australia and the other countries.
2.124At the public hearing, the Department of Foreign Affairs, Defence and Trade (DFAT) noted that with respect to Saudi Arabia ‘there are also very strong people-to-people links… a significant cohort of Saudi students in Australia, quite a number of Australians working in Saudi Arabia and… Australian Muslims undertaking pilgrimages in Saudi Arabia.’
2.125Turning to Peru and Colombia, DFAT told the Committee that greater connectivity in the region would help build greater people-to-people links, such as education and tourism, and would also strengthen bilateral trading relationships. Currently, connectivity to the Latin American region is only from Melbourne to Santiago, Chile.
2.126The Committee questioned whether Smartraveller advice provided to the public by DFAT intersects with the agreements, noting in particular that Colombia is a level 2 country (travellers are advised to exercise a high degree of caution). DITRDCSA clarified that Smartraveller advice does not impact the treaty arrangement and is only advice for those travelling to a particular country.
2.127The Committee queried what goods would benefit from direct flights. DFAT emphasised cut flowers as one example of a good traded between Australia and Colombia that would benefit from faster travel. They also mentioned the trade of Australian beef into Peru as another example. DFAT stated that Saudi Arabia is a substantial market for beef, sheep meat, barley, wheat, dairy products, cosmetics, pharmaceuticals, vehicle parts, accessories and vegetables.
2.128The Committee asked whether Australia has a Free Trade Agreement with the Gulf States. DFAT answered that while Australia has a trade deal with the United Arab Emirates, there is not yet a trade agreement with the Gulf Cooperation Council as a whole.
Regulatory differences
2.129The Committee received evidence from DITRDCSA that services provided by the designated airlines of each country will be expected to operate ‘in accordance with the terms settled between aeronautical authorities and are subject to compliance with applicable laws, including safety, aviation security, customs, quarantine and competition law.’
2.130Noting that Article 4 of the Agreement between the Government of Australia and the Kingdom of Saudi Arabia relating to Air Services requires compliance with the other party’s laws while operating in its territory, the Committee inquired about the most significant regulatory differences between Australia and Saudi Arabia in the aviation industry. Specifically, the Committee noted potential differences in labour, gender or workplace conditions.
2.131DITRDCSA noted that since Australian airlines are based in Australia, they are subject to Australian requirements. DITRDCSA further confirmed that airlines from Saudi Arabia flying to Australia ‘would be subject to our safety and security requirements.’
2.132The Committee requested further information on how the Australian government will support Australian airlines in operating safely and consistently with Saudi Arabia regulations when operating in their territory.
2.133DITRDCSA assured the Committee that in this instance ‘we can call for consultations between the two parties should we have concerns about what our airlines are being asked to comply with in Saudi Arabia.’
Committee comment
2.134The Committee acknowledges the importance of formalising international air services agreements with Colombia, Peru, and Saudi Arabia, noting that these arrangements will enhance Australia’s global connectivity.
2.135Expanding air connectivity is expected to deliver economic benefits, particularly in tourism, education, and trade. The Committee supports initiatives that promote direct flight opportunities and codeshare arrangements, and recommends continued assistance for Australian airlines navigating regulatory differences abroad.
2.136Assurance that foreign airlines operating in Australia will be subject to domestic safety and security standards is welcomed. The Committee encourages the Government to maintain open channels for consultation with treaty partners to address any operational concerns and ensure mutual compliance.
2.137While delays in progressing the Agreements are noted, the Committee encourages continued engagement with relevant Parties’ authorities to ensure timely ratification. These delays are understood to be the result of domestic procedural requirements and broader disruptions caused by the COVID-19 pandemic. Efforts by DITRDCSA to address the backlog of international air services agreements are commendable. The Committee supports DITRDCSA’s plan to bring forward similar, additional agreements with countries such as Nauru, Kiribati, Oman, and Seychelles by the end of 2025.
2.138In maintaining a standardised treaty template, DITRDCSA provides consistency across agreements while allowing for tailored provisions through negotiation. The Committee encourages regular review of this model to reflect evolving aviation policies and international best practices.
2.139The Committee supports the Agreement between the Government of Australia and the Kingdom of Saudi Arabia relating to Air Services and recommends that binding treaty action be taken.
2.140The Committee supports the Agreement between the Government of Australia and the Government of the Republic of Colombia relating to Air Services and recommends that binding treaty action be taken.
2.141The Committee supports the Agreement between the Government of Australia and the Government of the Republic of Peru relating to Air Services and recommends that binding treaty action be taken.
Ms Lisa ChestersMP
Chair