Manila - The Philippines and Australia have signed a new air service agreement that raises the number of flights and airline seats between the two countries, the Australian ambassador said Thursday.

Under the agreement signed on March 13, Philippine and Australian airlines are now able to offer up to 4,000 seats each way per week from the previous limit of 2,500 seats.

Over time, and in response to demand, the new limit could be increased to 6,000 seats, said Australia's ambassador to Manila, Rod Smith.

Australian and Philippine airlines may also now operate unlimited services to regional airports, Smith said.

"The new arrangements are a good example of Australia and the Philippines working together to liberalize the international aviation to benefit the travelling public, the tourism industry and airline carriers in both Australia and the Philippines," he said.

Last year, more than 300,000 people travelled between the two countries.

Australia is one of the top five sources of tourists for the Philippines along with the United States, China, South Korea and Japan.

Smith said Australia and the Philippines also signed an agreement that would allow dependents or spouses of diplomatic and consular personnel to seek remunerated employment in one another's countries. (dpa)