In a significant move that is expected to liberalise air travel between the two continents, the European Union and Australia have together signed an aviation agreement that is considered as a great milestone in the development of the air travel industry in both the regions.

The agreement is expected to totally scrap the nationality restrictions for all the European Union member states. The most important highlight of the agreement is that once it comes into effect, the whole of European Union will be treated as a single market for air transport. Notably, this is the first move of its kind ever in history. Recognising that all the airlines in the EU are rather community airlines and not just national airlines, the agreement allows any EU airline to operate its flights between any EU state and Australia.

The bilateral agreements remain in place between the individual countries and Australia. However, the move is viewed as a very important step towards unifying all the European Union member states. The implications of the above said agreement is highly beneficial as observed by the European Commission. This is seen as a momentous step towards establishing strong horizontal relationships between the two regions, which is expected to link people, businesses and culture.

Jacques Barrot, Vice-President in charge of transport observed, "I welcome this important step in the EU's air transport relations with Australia. This will pave the way for a comprehensive aviation agreement involving cooperation in key aviation areas such as competition, safety and the environment."