Qantas (QF, Sydney Kingsford Smith) and its Chinese counterparts Air China (CA, Beijing Capital), China Eastern Airlines (MU, Shanghai Hongqiao), and China Southern Airlines (CZ, Guangzhou) are all set to enjoy increased access to each other's markets following the recent finalization of an Open Skies agreement between China and Australia.

The agreement aims to boost ties between the two countries with Australia particularly keen to enhance its share of the Chinese tourist market which is expected to double from 100million in 2014 to 200million by 2020.

“The Australian Government is committed to ensuring that we have the aviation capacity necessary to meet future demand into and out of foreign markets and recognises the potential of Australia as a prime tourism destination within the Asia-Pacific region,” Australia's Deputy Prime Minister and Minister for Infrastructure and Regional Development, Warren Truss, said in a prepared statement.

When operating services to/from all cities in Australia other than the Australian Major Gateways (Sydney Kingsford Smith, Melbourne Tullamarine, Brisbane International and Perth International), airlines of both sides enjoy open capacity. In addition, airlines of both countries linking an Australian Major Gateway and another city in Australia as part of a multi-stop international service, may operate an extra 2,500 seats each way each week.

“Airlines can continue to offer unlimited passenger services between China and regional Australian ports, such as Cairns, Adelaide International, Darwin and Gold Coast Coolangatta, ensuring tourism operators in our rural and regional areas have access to the lucrative Chinese tourism market,” Truss said.

Concerning services between the Chinese Major Gateways (Beijing, Shanghai, Guangzhou) and the Australian Major Gateways, Truss said: “Under the new arrangements, Australian and Chinese airlines will be able to immediately operate up to 26,500 seats per week between Australia’s major gateway cities and Beijing Capital, Shanghai Pudong, and Guangzhou – an increase of 4,000 weekly seats or around 18% on these routes. A further 7,000 weekly seats to and from these destinations will be phased in over the next two years, to a total of 33,500 weekly seats."

A phased expansion of traffic rights at beyond and intermediate points has also been negotiated. By October 2016, airlines of each side will be able to access an additional three beyond points of choice (except for points in North America) and an additional six intermediate points.

These rights provide access to Australian airlines to fly beyond China to a variety of locations, including Europe, and will offer greater flexibility for airlines flying to China via intermediate points in Asia.