Pact clears way for low-cost transpacific carrier

The U.S. and Australia have signed a new “open skies” aviation agreement, replacing the previous aviation bilateral and removing restrictions on air service between the two countries. The most immediate beneficiary of the new agreement apparently will be V Australia, an affiliate of that country’s Virgin Blue, a domestic low-cost carrier. The new V Australia operation is being created to offer low-cost service across the Pacific, and the new bilateral will preclude the lengthy process of government approvals that would have been required previously. “The approvals granted at the Open Skies talks in the United States will enable V Australia to commence operations with 10 weekly frequencies between the countries,” a spokesman said. The company said it expects to begin service “in late 2008,” using Boeing 777-300ERs. V Australia said it will soon announce details of its in-flight product and its inaugural date.