TOURISM VICTORIA ANNUAL REPORT

AVIATION
Tourism Victoria is the
State Government’s lead
agency on air services,
working closely with both
Melbourne and Avalon
Airport on international
and domestic air service
proposals.
From an air services perspective,
a number of developments either
involving or led by Tourism Victoria in
2007–08 resulted in increased services
to the State and will have a major
lasting impact on Victoria’s aviation and
tourism performance. Tourism Victoria
also initiated discussions with several
new airlines, which have the potential
to secure increased capacity to existing
destinations and valuable new markets
in coming years.
Domestic services continued to expand
with Tiger Airways commencing services
from their hub at Melbourne Airport
thereby accelerating the delivery of low
cost seats into the State.
In addition, the Federal Government
announced it will develop a White
Paper to review national aviation
policy and guide the industry’s future
growth. The Victorian Government is
looking forward to working with the
Commonwealth in developing this
National Aviation Policy Statement.
International Air Services
Victoria made progress with several
airlines during the year, which resulted
in increased air services capacity and
access to new markets. Key outcomes
included:
• Korean Air commenced new direct
international services three times
weekly between Melbourne and
Seoul
• Qantas commenced twice weekly
Melbourne to Shanghai services and
between Melbourne and Hong Kong
increased its services from seven to
10 per week
• Cathay Pacific increased its services
between Melbourne and Hong Kong
from twice daily to three times daily
• Thai Airways increased services to
twice daily between Melbourne and
Bangkok
• Air China delinked services from
Sydney, operating three weekly
direct services between Beijing-
Shanghai-Melbourne
• Philippine Airlines increased its
services from three to five services
per week.
In addition to airline negotiations,
Tourism Victoria made a number
of representations to the Federal
Government on behalf of the State
Government to secure air rights for
new and current carriers to Melbourne.
Furthermore, Australia and the United
States concluded an open skies
agreement, allowing Australian and
US carriers unrestricted access on the
transpacific route. It is hoped that this
agreement paves the way for federal
consideration of third country carrier
access on this route.
Tourism Victoria also initiated air
services with a number of new airlines
that complement Melbourne’s existing
portfolio of carriers and services. This
strategy is in keeping with Victoria’s
aim to have a diversity of airlines flying
into the State. These negotiations are
progressing and, on top of negotiations
concluded in the year under review, will
lead to a major step-up in air activity to
Australia during 2008 and beyond.
56 INVESTMENT ATTRACTION & AVIATION