SYDNEY, Nov 20 (Reuters) - Australia on Friday announced a deal with the United Arab Emirates that will significantly boost flight numbers between the two countries, a move that is expected to increase tourism and possibly reduce ticket prices.
The bilateral agreement allows carriers based in Dubai and Abu Dhabi to operate an extra 14 flights a week to Sydney, Melbourne, Brisbane and Perth, bringing the total number of services to 161.
Australian airlines receive an extra 14 flight slots in return to the UAE, bringing the total to 56.
"The Australian Government is committed to supporting the entry of Australian airlines into foreign markets and ensuring we have the aviation capacity necessary to meet future demand," Acting Prime Minister Warren Truss said.
Australia's flagship carrier Qantas Airways Ltd QAN.AX switched its hub for European flights to Dubai from Singapore in 2013, after ditching IAG-owned British Airways ICAG.L as an alliance partner in favour of Emirates Airline EMIRA.UL .
Virgin Australia VAH.AX , which launched flights to Abu Dhabi in 2011, last month received a draft ruling from regulators in favour of it renewing its alliance with Etihad Airways. Virgin needs that tie-up, under which Etihad owns a 24 percent stake in Virgin and holds a seat on the board, to better compete against the more dominant Qantas-Emirates alliance.
The shifting skies are reflected in passenger data. Emirates now carries more than 25 percent of the traffic between Australia and Europe, followed by Qantas with about 15 percent and Singapore Airlines with just under 15 percent.
Qatar Airways is also muscling in on the Australia to Europe routes.
The increased gateway capacity announced on Friday supplements existing open access arrangements in place for regional Australia. UAE airlines already have the right to offer unlimited services to other Australian destinations, including Darwin, Cairns, Adelaide and the Gold Coast.