S’pore seeks open skies agreement with EU

LUXEMBOURG — Singapore is keen to pursue the idea of an open skies agreement with the European Union to promote freer air travel between the two, said Prime Minister Lee Hsien Loong yesterday at a press conference with Luxembourg Prime Minister Xavier Bettel.

Mr Lee was speaking during his visit to Luxembourg after the Nuclear Security Summit in the Netherlands concluded on Tuesday.

His comments came after an announcement at the EU-ASEAN Aviation Summit in Singapore last month that a working group was being set up to discuss the terms of a Comprehensive Air Transport Agreement between the two regions.

An EU-Singapore Comprehensive Air Transport Agreement would promote greater exchange between people and businesses, and pave the way for a similar agreement between the EU and ASEAN, said Mr Lee.

However, with the EU Parliament set to hold elections in May, such an agreement may take some time.

“We hope once the elections are over, we will be able to pursue this matter,” said Mr Lee. “And with support from many of the EU countries, we will be able to get the EU side to commit to a mandate to start negotiations.”

Although the agreement may “take some years”, Mr Lee said it was something that should be worked on.

More than 100 countries and territories have concluded air services agreements, including 40 open skies agreements, with Singapore. Such agreements allow carriers to operate any number of flights between and beyond the signatory states.

This allows the carriers to tap traffic from third countries, improving the commercial viability of scheduled flights.

In 2006, Singapore and the EU, which is made up of 28 member countries, signed a landmark aviation agreement that was set to pave the way for a fully-liberalised open skies agreement.

Luxembourg is Singapore’s third-largest EU investor as of the end of 2012 and there are 254 Luxembourg companies in Singapore, including Cargolux Airlines and steel giant ArcelorMittal.

Bilateral relations between Singapore and Luxembourg are progressing well and trade between the two nations grew more than 60 per cent last year, said Mr Lee, adding that more could be done together.

Mr Bettel concurred, noting that Singapore and Luxembourg have much in common, being countries “that are not the biggest” but are competitive and know how to deal with bigger neighbours.

Asked what lessons the Ukraine crisis held for small states such as Singapore and Luxembourg, Mr Bettel said a “pacificist” solution was needed.

“A war won’t help anyone … Europe cannot say nothing … and we should come to the table and seek and find solutions,” he said.

Mr Lee said the crisis was a reminder of the need to maintain good diplomatic ties.

“You must have very effective foreign policy and diplomacy, and (have) international agreements that must be upheld and which we hold partners to,” he said. “The only thing small states have are words and treaties.”

The visit yesterday was Mr Lee’s first to Luxembourg, following then-Prime Minister Goh Chok Tong’s visit in 1996.

He will meet British Prime Minister David Cameron in London and attend Singapore Day on Saturday.