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Open Skies for Indonesia and the U.S.A.

Historic 'Open Skies' Agreements Signed in Bali.

(8/2/2004) On Monday, July 26, 2004, a historic open-skies agreement was signed between Indonesia and the United States that virtually removed all restrictions covering air communications between the two nations.

The bi-lateral agreement was signed by U.S. Transportation Secretary Norman Mineta and Indonesia's acting Minister of Transportation, Soenarno. Both men were in Bali where they signed the wide-ranging air agreement prior to the commencement of a meeting of Asia-Pacific Transport Ministers held at Nusa Dua.

Quoted by Reuter's News Service, Secretary Mineta said, "the Open-Skies agreement will connect our countries, our citizens and our economies, opening new opportunities for trade, tourism and investment."

The agreement removes all restrictions on the number of flights, type of aircraft and pricing regulations for aircraft operating by Indonesian and the U.S.A. carriers and flying between the two nations.

U.S. Grant to Assist Indonesian Aviation

Concurrent with the signing of the new aviation agreement between the U.S.A. and Indonesia, the United States Trade and Development Agency (USTDA) has provided three grants totaling US$ 1,187,500 to Indonesian aviation development projects.

The first grant worth US$ 443,500 is a technical assistance agreement to assist Indonesia in the assessment of safety and security procedures at Indonesia's airports. A second grant worth US$ 627,000 will permit Indonesia to re-establish air traffic control systems in the airspace above Natuna Island in the South China Sea. Currently, air traffic control in this Indonesian sector is provided by Singaporean and Malaysian air traffic controllers. The final grant of US$ 117,000 is for technical assistance to the Indonesian airline industry to support and encourage competition in the management of computer reservation systems (CRSs).

Shown at balidiscovery.com is U.S. Transportation Secretary Norman Mineta addressing a cocktail following the bi-lateral air agreement signing in Nusa Dua, Bali.