Factors affecting trans-Tasman air services

International civil aviation is circumscribed by a plethora of bilateral air service agreements between sovereign nations. In recent years there has been a marked trend to liberalise these agreements as well as moves to create multilateral common markets as appear to be emerging in Europe. Airline managements are being given opportunities to implement operational strategies once severely proscribed in confidential memoranda of understanding lying behind the public bilateral documents. In keeping with the philosophy of extending the Closer Economic Relations (CER) agreement, Australia and New Zealand have been exploring the ramifications of bringing trade in air services within the ambit of CER. This paper examines some of the factors affecting the trans Tasman civil aviation environment and discusses the implications of modifications to air services in and between Australia and New Zealand.