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New permit conditions for Qantas
The Government has issued a new operating permit to Qantas with conditions that will apply if the current problem involving the level of fifth freedom traffic carried by the airline is not resolved within a two month grace period.
Fifth freedom rights cover the carriage of passengers and freight by an airline between destinations outside its home country.
The permit, issued by the Director of Civil Aviation today (Thursday) and is valid until October 28, replaces the current one which is due to expire on April 30.
The permit includes a restriction limiting Qantas's carriage of fifth freedom traffic on its Hong Kong - Bangkok and Hong Kong - Singapore services to 50 per cent of the total number of passengers carried on each flight, with effect from July 1.
A Government spokesman said that the aim was to encourage Qantas to carry more through passengers, to and from Australia, on those services. It was now necessary to impose the condition because of failure by Australia at recent negotiations to agree to a reduction in the proportion of fifth freedom traffic.
"The mix of traffic is inconsistent with the guiding principles set out in the Air Services Agreement between Hong Kong and Australia and we drew this to the attention of the authorities there in May 1994," the spokesman said.
Discussions were held in November last year but these failed to produce a solution. A second round of talks was held in Canberra in early April but also ended without reaching any agreement.
"Given the lack of progress in these talks, we have had little, option but to take action over Qantas's fifth freedom activities," the spokesman said.