February 15, 2008 02:00pm AN open skies agreement between Australia and the US is likely to spark an international airfare price war, travel agency Flight Centre says.
Managing director Graham Turner said travellers would benefit from the arrival of new carriers on Australia-US routes, with increased competition likely to spark a wave of airfare discounting.
Australia and the US today finalised the long-awaited open skies agreement, which will allow vast expansion of air travel and competition on the busy trans-Pacific route.
Federal transport Minister Anthony Albanese said under previous arrangements, new airlines had only been allowed four services a week, effectively restricting competition.
Australian and US airlines would now able to determine the frequency of services routes without government interference.
