Singapore aviation poised for recovery, says Minister Lim

Time:2010-03-17 Browse:45 Author:RISINGSUN

WHILE 2009 had been a hard year for Singapore aviation, junior transport minister Lim Hwee-hua says the continued development of open skies policies and support for the low-cost carrier market has ensured that the city-state is poised for recovery.
In a recent speech on island-nation`s status as a regional air services hub, Ms Lim noted that the Civil Aviation Authority (CAAS) will launch the Aviation Partnership Programme this year to promote various industry-wide initiatives, such as paperless freight documentation in the air cargo and logistics field.
At the end of last year, total air cargo handled was down 12 per cent at 1.63 million tons. But the end of the year showed some positive signs with December recording a slight year-on-year increase. Passenger numbers followed suit, with marked improvements in the last quarter, leading to an over decline of just 1.3 per cent for the year, she said.
"The benefits of liberalisation can be seen in the opening up of sectors between Singapore and key Malaysian cities," she said. "Despite the downturn, overall Singapore-Malaysia traffic grew a spectacular 41 per cent in 2009 as a result of bilateral liberalisation of traffic rights. After declining for almost a decade, traffic on the Singapore-Kuala Lumpur sector rebounded to 34 per cent growth in 2009 from 2008."
Apart from bilateral air services negotiations, Singapore is also pursuing liberalisation at the multilateral level. Within the region, two multilateral agreements liberalising freighter and passenger air services among ASEAN member states have recently come into force.
A third deal, which will expand on the earlier arrangement to fully liberalise passenger air services within ASEAN, is expected to be signed this year. For the first time, ASEAN is also in negotiations with its dialogue partner, China, to establish a liberal air services regime.