Singapore Airlines crew members and travelers at the Changi Airport Transit Hall in Singapore on 14 January 2021.
Roslan Rahman | AFP | Getty Images
SINGAPORE – Shares of Singapore Airlines jumped on Monday after the city-state confirmed it was in talks with Australia to launch an air travel bubble.
Shares of Singapore Airlines rose 5.28% in early afternoon trading, after rising 8.49% earlier in the day. Airline-related stocks such as SATS, a subsidiary that offers aerospace catering, rose 3.43%, while SIA Engineering rose 5.12%.
Australian flag bearer Qantas scored 3.4%.
An air travel bubble will enable residents of Singapore and Australia to travel between both countries without the need for a quarantine. International travel routes have remained relatively limited since world borders were closed last year due to the Covid-19 pandemic.
Both Singapore and Australia have apparently brought the infection under relative control, while vaccination programs are also underway.
“Singapore is currently in talks with Australia on the mutual recognition of vaccination certificates and the resumption of preferential travel for students and business travelers,” the Singapore Ministry of Foreign Affairs said in a statement on Sunday.
“We are also discussing the possibility of an air travel bubble enabling residents of Singapore and Australia to travel between both countries without the need for quarantine,” the ministry said.
Australian nationals can travel through Singapore without quarantine to return home if they travel on approved transport routes and comply with the state’s public health protocols, the statement said.
Australian Deputy Prime Minister Michael McCormack told local media on Monday that Canberra might be looking at July for the travel bubble with Singapore. But according to a transcript of his remarks, he added that the discussions are at an early stage, although talks are productive.
Global tourism tackles
According to the tourism authority, the tourism sector in Singapore has declined sharply in the first nine months of 2020. International visitors fell 81.2% to just 2.7 million from a year ago, and tourism revenue fell 78.4% to $ 4.4 billion ($ 3.27 billion).
The city-state has been trying to set up an air travel bubble with Hong Kong since last year. But it was postponed after Hong Kong announced a revival in new Covid-19 cases.
Last week, Transport Minister Ong Ye Kung told CNBC in Singapore that the country was not giving up on reaching the travel bubble agreement with Hong Kong.
Singapore has allowed visitors from certain places, including Australia, New Zealand, mainland China and Taiwan, to skip quarantine if they meet certain requirements – such as a negative Covid-19 polymerase chain reaction (PCR) test on arrival .