Increasing air travel is crucial for Government’s new trade agreement with UAE

The Australian Government is in negotiations with the United Arab Emirates (UAE) for a new Free Trade Agreement (FTA), with increased flight capacity emerging as a crucial factor in the discussions. This development follows a 38 per cent rise in business travel from Australia to the UAE in the past six months compared to the same period last year.

Flight Centre Global Corporate COO Melissa Elf highlighted the potential for significant investment in Australia’s critical minerals and clean energy technology under the agreement. However, Elf emphasized the need for sufficient travel capacity to support the increased demand for flights between the two countries.

While there have been recent announcements of added capacity by airlines such as Emirates, with plans to add 100,000 aircraft seats annually between Brisbane and Dubai, more capacity is required to meet the growing demand. The increased flight capacity not only benefits business travelers but also has the potential to lower airfares for other travelers passing through the Middle East en route to Europe.

Furthermore, there has been a shift in the industries driving travel between Australia and the UAE, with a surge in travel from the mining, oil, gas, and services sectors in the current year. This aligns with the focus on trade in critical minerals and clean energy technology between the two countries.

The FTA is expected to provide UAE with preferential access to Australian critical minerals, strengthening the trade partnership between the two nations. Ministerial discussions are set to take place in Abu Dhabi, with the aim of finalizing the deal by the end of the year. The UAE remains Australia’s largest trade and investment partner in the Middle East, with significant two-way trade and investment figures recorded in recent years.