Singapore Airlines (SIA) is the first foreign carrier to win rights to operate services beyond China to third countries providing further evidence of how China is opening its doors to the outside world.
SIA's cargo subsidiary SIA Cargo secured fifth freedom, or beyond rights, to operate its Boeing 747-400 freighters to Chicago via Xiamen and Nanjing as part of a new air services agreement signed in December. China says that "this will be the first time the Chinese mainland has granted fifth freedom rights to a foreign air carrier". While a small first step, it is an important one and authorities are hinting that similar rights could be awarded to other carriers in future.
"It is necessary to grant fifth freedom rights to foreign air carriers if China wants to enhance its competitive advantage as a regional hub," says a Xiamen Gaoqi International Airport executive. China for years maintained a relatively restrictive bilateral air services regime, but it has been pursuing a progressive liberalisation policy as the country's air transport market is growing faster than any other.
SIA Cargo is due to launch its new services beyond China to the USA in May. In December a new air services agreement was signed between China and Singapore, representing a further expansion of an accord that was only renegotiated in February 2002.
That agreement allowed for a 75% increase in passenger capacity and a 100% increase in cargo services. The December agreement allowed for a further 75% increase and a trebling of cargo capacity by 2004.
Source: Airline Business
