The trans-Tasman single aviation market

Abstract

The attempt to create a single aviation market between Australia and New Zealand (the trans-Tasman market) has highlighted aspects of the reform of international air transport policy using regional arrangements. Recent developments across the Tasman are reviewed in this policy note. The experience illustrates that ownership and control limits associated with bilateral agreements are significant hurdles to change but are not insurmountable. More important issues are the competition policy implications of change in air transport policy and the difficulty of dealing with 'beyond rights' issues in regional arrangements.