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Spanish Success Creates New Opportunities

8 May 2002

Spanish Success Creates New Air Services Opportunities

Spain is New Zealand’s newest air services partner, with an agreement signed by Foreign Affairs Minister Phil Goff while in Spain this week.

Transport Minister Mark Gosche said the agreement would provide a sound basis for developing direct air links between Spain and New Zealand, enhancing options for travellers from both countries.

“It also creates additional trade and tourism opportunities between New Zealand and Spain.”

Mr Goff said Spain was an important trading partner for New Zealand, and potentially an important source of tourism for New Zealand. The Spanish agricultural export market is currently worth around $156 million per annum to the New Zealand economy. Spain is also a source of imports for New Zealand, currently worth $165 million per annum.

“The agreement will be a significant boost to New Zealand’s attractiveness as a tourism destination in the Spanish market. Already more than 4000 Spaniards have visited New Zealand in the last year.”

The agreement gives the airlines of each country the opportunity to operate services with their own aircraft, and provides unrestricted code-sharing opportunities, including with airlines of other countries. Services may be operated to two destination points in each country, but intermediate and beyond points are unrestricted, providing for flexible route structures.

In addition, individual airlines have the freedom to establish their own prices and to vary those prices without requiring the approval of authorities in each country, said Mr Gosche.

“The pricing freedom means that airlines will have the maximum flexibility to develop and implement innovative and competitive prices, in line with market conditions.

“This agreement means New Zealand now has air services arrangements with all major European air services markets, with lack of access for New Zealand airlines to metropolitan France the only significant missing opportunity.”

Ends

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