As bilateral restrictions bite, Australia’s secondary airports have an opportunity to bloom

The withdrawal of regularly scheduled international Qantas services from Perth is giving reason for the Western Australian capital to suggest bilateral air service agreement caps should not apply to it, allowing Perth to grow in the absence of Qantas services and beyond the handful of Virgin Australia flights. Australia's otherwise unilateral open skies agreements constrain capacity at the main airports of Brisbane, Melbourne, Perth and Sydney but have more generous allowances - or unlimited access - for flights to other cities.

The more liberal access to secondary Australian airports presents a theoretical opportunity for airlines from markets like mainland China, Hong Kong, Malaysia, the Philippines and UAE which are at or close to bilateral limits. But secondary cities generate lower volumes, including in the necessary premium cabins, and have lower recognition overseas. Tag flights from a secondary Australian airport to a primary airport circumvent bilateral restrictions, but can come with prohibitive complexities, operationally or commercially.