SINGAPORE — The stock of Singapore Airlines soared Monday after the city-state announced it was in talks with Australia to create an air travel bubble.
After surging as much as 8.49 percent earlier in the day, Singapore Airlines shares were up 5.47 percent in afternoon trade. SATS, a subsidiary company that offers in-flight catering, was up 3.43 percent, while SIA Engineering was up 4.65 percent in airline-related stocks.
At market close, Qantas, Australia’s flag carrier, was up 3.77 percent.
Residents of Singapore and Australia will be able to fly between the two countries without having to go through quarantine. Since global borders remained closed last year due to the Covid-19 pandemic, international travel routes have remained relatively restricted.
Singapore and Australia seem to have brought the infection under control, and vaccination campaigns are underway in both countries.
“Singapore is currently in discussions with Australia on the mutual recognition of vaccination certificates and resumption of travel with priority for students and business travellers,” the Ministry of Foreign Affairs in Singapore said in a statement on Sunday.
“We are also discussing the possibility of an air travel bubble which will allow residents of Singapore and Australia to travel between both countries without the need for quarantine,” the ministry said.
Australian citizens can return home without being quarantined if they ride on authorised transit routes and follow the state’s public health protocols, according to the release.
On Monday, Australia’s Deputy Prime Minister Michael McCormack told local media that the travel bubble with Singapore could start in July. However, according to a transcript of his remarks, he added that while the talks have been fruitful, they are still in the early stages.
On Monday, Australia’s Deputy Prime Minister Michael McCormack told local media that the travel bubble with Singapore could start in July. However, according to a transcript of his remarks, he added that while the talks have been fruitful, they are still in the early stages. Since last year, the city-state has attempted to build an air travel bubble with Hong Kong.
However, it was postponed after new Covid-19 cases were registered in Hong Kong. Singapore’s Transport Minister, Ong Ye Kung, told CNBC last week that the country would not give up on forming a travel bubble agreement with Hong Kong.