Booking Hints

#6 Which Airline Can Fly Where?

Who or what controls which airlines can fly between any two cities? The government controls this by way of a Bilateral Agreement. A Bilateral Agreement is an agreement between two countries allowing their respective airlines reciprocal landing and take-off rights in each other’s country. This is commonly known as ‘having traffic rights between point A and point B’. For example, only airlines of Australia and the Philippines can fly between Australia and the Philippines. In other words no other airline is allowed to fly on this direct route. However, there are exceptions such as between Australia and Singapore where a number of different carriers operate. This is called the 5th Amendment where the governments of Australia and Singapore have agreed to allow other airlines to fly this route.

Example: A Bilateral Agreement will exist between the government of Australia and the government of the Philippines which currently allows Qantas and Philippines Airlines to operate between Australia and Manila. These airlines are known as on-line carriers and have published fares and set rules which both carriers must adhere to.

However, other airlines (off-line carriers) entice people to fly with them by offering cheaper fares. The catch is that you have to fly via their hub port. For example Malaysia Airlines will fly you to Manila but you will have to travel via Kuala Lumpur. Malaysia Airlines will have traffic rights between Australia and Malaysia and between Malaysia and the Philippines so they can do this. As the journey time is longer the fare should in theory be cheaper.

However on-line carriers are now competing heavily with the off-line carriers and the fares can be very similar. Of course travellers may not necessarily be motivated by the cheapest fare but perhaps by an extra stopover or free accommodation or Frequent Flyer points or even better in-flight service.

Flying the most direct route may not be the cheapest option so think laterally. You might be able to have a holiday in both Malaysia and the Philippines if you fly Malaysia Airlines to Manila. If you apply this thought to other destinations you could, for example, fly Japan Airlines to London which will not only save you a few dollars but could also give you a few days in Japan.

Or fly with Air Canada and take in Vancouver on the way to London and perhaps Toronto on the way home.