REPORT ON IMPLEMENTATION OF AIR SERVICES GROUP RECOMMENDATIONS (REPORT BY SINGAPORE)

The Steering Committee on More Competitive Transportation Industry (Including Infrastructure), at its meeting during the 13^th Transportation Working Group Meeting, endorsed the Comprehensive Report on the Options submitted by the APEC Air Services Group on More Competitive Air Services with Fair and Equitable Opportunity. The Steering Committee recommended that Economies could provide progress reports to the Steering Committee, on a voluntary basis, on their implementation of the recommendations.

As reported at the 16^th Transportation Working Group Meeting, Singapore agrees with the recommendations of the APEC Air Services Group (ASG) and supports the early implementation of the four high to high / medium priority options, viz "doing business" matters, multiple airline designation, facilitating airlines' co-operative arrangements and air freight services.

The progress Singapore has made towards the implementation of the Air Services Group's recommendations is as follows:

Option 1: Air carrier ownership and control

Singapore supports updating the designation clause to one based on "principal place of business" and "effective control". Currently, most of Singapore's bilateral air services agreements with other countries have the standard ownership and effective control clause governing the designation of airlines. The updated designation clause can be found in our air services agreement with an APEC economy. We have already tabled the updated designation article to several APEC economies for their consideration.

Option 2: Tariffs

Singapore adopts a liberal policy on tariff regulation as we believe that air carriers should have the flexibility in determining their air fares to respond to the changing market place. Singapore has unilaterally de-regulated air cargo tariffs in Singapore since 1987. Airlines operating in Singapore no longer need to obtain our approval for air cargo tariffs but only to file them for the authority's information. However, Singapore carriers still have to operate under the tariff regime provided for in our air services agreements with other economies. Several of our air services agreements with APEC economies provide for a liberal tariff regime.

Option 3: Doing business matters

In general, Singapore adopts an open and non-discriminatory policy in "doing business" matters.

Option 4: Air freight

Singapore supports the liberalisation of air freight services and have proposed a liberalised air freight regime to other APEC economies for their consideration.

Option 5: Multiple airline designation

Singapore adopts a multiple airline designation provision in most of its bilateral air services agreements. Such an arrangement is found in our air services agreements with almost all the APEC economies. Singapore is willing to consider incorporating multiple airline designation provisions in our bilateral air services agreements with the remaining APEC economies as and when the opportunity arises.

Option 6: Charter services

Singapore adopts a liberal approach to charter services. We will normally approve charter services, so long as they complement and supplement scheduled services. Charters are also encouraged on undeveloped routes not served by scheduled services.

Option 7: Airlines' co-operative arrangements

Singapore generally facilitates co-operative arrangements such as code-share by airlines, especially if such arrangements would enable new air links which are otherwise not commercially viable to be established. We have included code-share provisions in several of our air services agreements with APEC economies.

Option 8: Market access

Singapore's approach on market access is to work with our bilateral partners to seek more opportunities for airlines of both sides to tap the market potential of the routes, on the basis of reciprocity.

This page was last updated on 17 May 2000