Australia agrees large phased air capacity increase with the UAE

The Australian Transport Minister, Mark Vaile, on 22 March 2007 announced that Australia and the United Arab Emirates have agreed to new air services arrangements that involve the phased introduction of a large increase in capacity limits on the carriers of both countries. Reports of the new deal are carried in the Australian and the Age.

Major beneficiaries of this announcement will be Etihad Airways and Emirates Airline who between them will be able to operate an additional 56 flights per week to major Australia cities by 2011.

One cannot but help wonder what influence this announcement will have on institutions deciding on how to react to the current bid for Qantas shares.