New Air Services Agreements Pave the Way for Air Links between Singapore and Latin America

Singapore concluded new Open Skies Agreement with Peru and new Air Services Agreements with Colombia and Ecuador

Singapore has concluded a new Open Skies Agreement (OSA) with Peru and new bilateral Air Services Agreements (ASA) with Colombia and Ecuador over the last one month. The new agreements allow carriers from Singapore and the Latin American countries to operate scheduled passenger and cargo flights between Singapore and their respective countries. The traffic rights exchanged under these new agreements also allow carriers to tap on traffic from third countries to improve the viability of scheduled flights. With the air services frameworks in place, carriers can swiftly respond to any business opportunities that may arise, particularly in trade and the tourism market.

The Singapore-Peru OSA allows carriers from both countries to operate unlimited passenger and cargo flights between the two countries and beyond them to any city worldwide. The OSA is even more liberal than conventional OSAs, in that it provides carriers unlimited "hubbing" rights for cargo operations. Singapore carriers may utilise these rights to base their aircraft in any point in Peru and use the point as a hub for cargo operations to third countries, without any restriction on destination, frequency or capacity. The same applies to Peru carriers with respect to Singapore.

Under the Singapore-Colombia ASA, carriers of each country are allowed to operate up to eight passenger flights and eight cargo flights weekly. The frequencies will increase to fourteen weekly flights each by January 2011.

The Singapore-Ecuador ASA allows carriers from both sides to operate up to 56 weekly passenger flights between and beyond the two countries. The ASA also included an open skies arrangement for cargo operations, with "hubbing" rights.

"World Trade Organization figures show that between 2005 and 2008, trade between Latin America and Singapore grew at an average of 30% per annum, almost twice the average growth rate of Singapore's global trade of 16.3% in the same period," said Mr Yap Ong Heng, Director-General of the Civil Aviation Authority of Singapore. He added, "With growing trade, business and tourism flows between Singapore, and the rest of Asia, and Latin America, it is important that such air services frameworks are established ahead of market demand. Besides contributing significantly to Singapore's air connectivity, air services between Singapore and Latin America will also bring about new market opportunities for both sides."

Mr Tan Tiow Kor, Senior Vice President (Sales & Marketing), Singapore Airlines Cargo, applauded the business opportunities the agreements will bring. He said, "The Singapore Airlines Group welcomes the conclusion of Air Services Agreements with Colombia, Ecuador and Peru. The Agreements will facilitate the planning of new freighter services by SIA Cargo to Latin America, where there is good traffic potential. Earlier this year SIA Cargo operated a series of ad hoc freighter services to Sao Paulo, Quito and Bogota in Latin America. SIA Cargo will be reviewing the feasibility of operating more services now that there are formal frameworks in place under the new ASAs."

There are currently no direct scheduled flights between Singapore and Latin America. Singapore has OSAs with close to 40 countries, including the new OSA with Peru.

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