Chile-Malaysia air services to start in April 2013
The Air Services Agreement between the Governments of Chile and Malaysia signed by both countries in Kuala Lumpur in April 2010 had come into international effect on August 16, 2012. It has been enacted by Chile on March 20th 2013. This Agreement is a modern and Open Skies one; i.e. does not restrict the number of flights that an airline wishes to perform to the other country’s territory and encourages competition between companies. These rights can be exercised without geographical limit, which acquires great importance given the distance to which Chile and Malaysia are, what it makes necessary that the operations between both countries are carried out with support in other markets.
This Air Services Agreement also grants several advantages to airlines so they can adopt different operational models to interact with other airlines, whether with the other Party’s airlines or with third countries. These modalities can be code-sharing agreements, lease of aircraft with crew or forms of exchange of aircraft, among others.
These mutual cooperation agreements between airlines of both countries may benefit greatly by the recent incorporation of Malaysian Airlines (MAS) to the OneWorld Alliance, to which LAN Airlines (Chile) is already part of. Likewise, both airlines already operate to Auckland, New Zealand and Sydney, Australia, where they can connect their services.
The Agreement also includes exemption of taxes, freedom to fix their own rates, the principle of non-discrimination regarding measures that the local authorities may adopt, i.e. time slots on airports and rules of non-discrimination on automated booking systems. This Agreement applies to passengers/cargo flights and cargo-only flights alike.
The extensive benefits of this Air Services Agreement grants the airlines of both countries aiming to operate to the territory of the other party provide a considerable boost to air transport companies come to operate between Malaysia and Chile.
Source: The New Straits Times – http://www.nst.com.my/latest/chile-malaysia-air-services-to-start-this-month-1.245831