Proof Committee Hansard

Page 2 House of Representatives Monday, 10 October 2016
continue to develop international air services between our two countries. Australian business and Australian
travellers will benefit from our airlines having continued access to the Kuwait market.
The proposed agreement obliges the governments of Australia and Kuwait to allow the designated airlines of
each country to operate services between the two countries in accordance with the limitations settled between
aeronautical authorities and subject to compliance with applicable laws, including safety, security, competition
laws, customs and quarantine. Comprehensive stakeholder consultation also took place prior to negotiation.
The proposed protocol between Australia and Bahrain makes minor amendments to the Australia-Bahrain air
services agreement that entered into force in 1995. The protocol proposes more liberal route rights and tariff
provisions for both countries and changes references to 'the State of Bahrain' to 'the Kingdom of Bahrain'.
In both cases, the treaty actions were settled in conjunction with an arrangement of less than treaty status in the
form of a memorandum of understanding. The memorandum of understanding with Kuwait was signed in April
2012 and that with Bahrain in March 2003. In accordance with both Australian and accepted international
practices, these MOUs settled more detailed commercial entitlements that defined the scope of airlines' operations
under the respective air services agreements and applied the provisions of the proposed respective treaty action on
an administrative, non-legally-binding basis pending entry into force. MOUs are, by custom, confidential between
aeronautical authorities and are not distributed publicly. We have provided a copy of the MOUs with Kuwait and
Bahrain to the committee to aid in consideration of the proposed treaty action.
I would be happy to take any questions the committee may have on the proposed agreement with Kuwait and
the proposed protocol with Bahrain.
CHAIR: Thank you, Ms Redmond. Is the proposed agreement with Kuwait different in any way from any
previous air services agreements between the government of Australia and governments of other states?
Ms Redmond: The agreement with Kuwait was based on Kuwait's text, which differs slightly from the
Australian model text. However, it is consistent with our model text.
CHAIR: What are the substantive differences?
Mr Smith: The main differences between Kuwait's model text, which we worked off during the negotiations,
and many of our other arrangements, including what we use as our model text—substantively they provide for the
same legal rights and obligations to airlines and upon parties—would be in terms of how they are structured and
the exact wording used to create those obligations.
CHAIR: In terms of the Protocol to Amend and Supplement the Agreement between the Government of
Australia and the Government of the State of Bahrain relating to Air Services, again, are there any substantive
differences between the protocol we are moving into and other similar agreements?
Mr Smith: The protocol itself does not create any kind of additional obligations. The provisions around tariffs
that were included in that protocol are consistent with what we usually look to negotiate, and they provide for free
pricing for airlines to determine their own airfares for carriage of passengers and cargo, which is consistent with
our standard approach. The other substantive amendment to that is just to change references to 'the State of
Bahrain' to 'the Kingdom of Bahrain', which we can support as well.
Senator IAN MACDONALD: This will facilitate airline traffic between Australia and the two nations that
we are dealing with?
Ms Redmond: That is right.
Senator IAN MACDONALD: Do you have figures on the airline traffic between Kuwait and Bahrain and
Australia and whether it is just through traffic or Bahrain and Kuwait are the destinations?
Ms Redmond: Yes, we do have some figures on that. There is no own operated services that operate, so
Qantas would be codesharing with Emirates through Dubai to Kuwait and to Bahrain. Similarly, Virgin Australia
codeshare with Etihad. I think Etihad only services the Kuwait market from Australia. Actual figures for Kuwait,
for example, are 5,410 visitor arrivals in Australia—
Senator IAN MACDONALD: From Kuwait?
Ms Redmond: from Kuwait this financial year.
Senator IAN MACDONALD: And Bahrain?
Ms Redmond: From Bahrain we had 1,495.
Senator IAN MACDONALD: So they are inbound. Do any of their airlines fly direct to Australia?
Ms Redmond: No.
TREATIES COMMITTEE