Foreign airlines eye WA regional routes

Foreign airlines could get special rights to carry domestic passengers from regional centres to capital cities - such as between Broome and Perth - as part of a Federal strategy to boost tourism.

However, the move would be subject to reciprocal rights for Australian airlines. It potentially would allow foreign airlines such as Air Asia, which offers some of the world's cheapest fares, access to routes such as Broome-Perth or Darwin-Perth.

In the Aviation White Paper released yesterday, the Government said that while it did not intend to permit foreign airlines to carry domestic passengers - termed cabotage - it recognised it as a valuable right sought by some foreign airlines.

The Government said where demonstrable benefits could be gained through the granting of cabotage rights and provided safety concerns were satisfied, it would consider trading cabotage rights strategically to help achieve a comprehensive open-skies agreement with a major trading partner.

Such an agreement may be at least two years away, according to insiders.

However, the Government will open up all regional airports to unlimited access by foreign airlines to boost regional tourism. Broome International Airport general manager Nick Belyea said yesterday it was encouraging to see the Government recognise the importance of Broome as a northern gateway to Australia's tourism industry.

"We are likely to see opportunities to Singapore and other Asian destinations," he said. "The focus on Broome is also a good fit for the State Government's push to develop regional population hubs to support the resource and tourism industries."

Mr Belyea also sees direct flights developing between Broome and Brisbane to support the Browse oil and gasfield.

_The West Australian _ understands that Perth-based Skywest Airlines is studying route possibilities linking Broome to Singapore and possibly Bali.

It is also known that airlines such as Air Asia would be interested in a Kuala Lumpur-Broome-Perth service.

Australia is one of a handful of countries to allow foreign airlines to set up a domestic airline.

In 2000, Virgin Blue, at the time wholly owned by Sir Richard Branson, launched services in Australia and more recently Tiger Airways, which is majority-owned by Singapore Airlines, started domestic services.