15^th TRANSPORTATION WORKING GROUP
Santiago de Chile, April 19 - 23,1999

 TPT/WG/15/CT/SC/4.2

Third Meeting of Steering Committee on
More Competitive Transportation Industry (including Infrastructure)

 Report on Air Services

BRUNEI DARUSSALAM

REPORT BY BRUNEI DARUSSALAM TO THE STEERING COMMITTEE
ON MORE COMPETITIVE TRANSPORTATION INDUSTRY
(INCLUDING INFRASTRUCTURE) ON IMPLEMENTATION OF
AIR SERVICES GROUP RECOMMENDATIONS

Brunei Darussalam has concluded air services agreements with fifteen APEC economies namely: Australia; China; Hong Kong, China; Indonesia; Japan; Malaysia; New Zealand; Russia; Philippines; Singapore; South Korea; Chinese Taipei; Thailand; United States; and Vietnam. Three of the air services agreements were based on open skies while the rest were less liberal. The most recent open skies air services agreement was signed with New Zealand on March 4 1999. The other two open skies air services agreements were signed with Singapore and the United States of America. Brunei Darussalam is seeking to negotiate liberal air services agreements, either bilaterally or plurilaterally, with like minded APEC economy/economies.

Implementation of the Options

Option 1: Air Carrier Ownership and Control

For an airline to be registered as a Brunei Darussalam’s airline, the airline has to be substantially owned and effectively controlled by Brunei Darussalam’s interest.

Under most of Brunei Darussalam’s bilateral air services agreements with other countries, airlines designated by the other country have to be substantially owned and effectively controlled by the country designating the airlines or by its nationals. Brunei Darussalam, however, accepts the principal place of business in the territory of the Party designating the airline to replace the standard provision, as was the case with the recent agreement signed with New Zealand.

Option 2: Tariffs

In recently signed agreement, the requirement for tariff filing has been removed.

Option 3: Doing Business Matters

Brunei Darussalam maintains a non-discriminatory, open market to these matters.

Option 4: Air Freight

Brunei Darussalam has been adopting quite a liberal policy on airfreight services. Brunei Darussalam’s open skies air services agreements with Singapore, the United States and New Zealand permit designated airlines to provide air freight services with 5^th and 7^th freedom traffic rights. The open sky air services agreement with the Unites States and New Zealand also permit designated airlines to engage in inter-modal services operated in connection with the agreed air transportation.

Option 5: Multiple Airline Designation

Multiple designation is provided for in most of the bilateral air services arrangements between Brunei Darussalam and APEC economies.

Option 6: Charter Services

Brunei Darussalam is liberal in permitting the operation of ad-hoc charter services to provide additional capacity for carriage of freight to meet seasonal or temporary needs that cannot be easily met by scheduled services.

Brunei Darussalam’s open skies air services agreements with Singapore, the United States and New Zealand permit designated airlines to provide charter passenger and freight services with unrestricted route, capacity and traffic rights.

Option 7: Airlines’ Co-operative Arrangements

Airlines’ co-operative arrangements is provided for in newly signed agreements allowing designated airlines to cooperate among themselves including third-country country code sharing arrangements.

Brunei Darussalam seeks to negotiate with APEC economies to remove restrictions on routes, capacity and traffic rights from existing air services agreements as well as to negotiate new air services agreements based on open skies.

This page was last updated on 12 March, 2008