Asean Open Skies Agreement Benefits

In addition, selected airlines may need to reconfigure their fleets, as many of the new routes that will be opened under the open ski deal would be more efficiently served by smaller aircraft of about 110 seats, up to 180 seats, Shukor adds. The seventh freedom allows an airline to fly between two foreign destinations outside its country of origin, without the flight having to be connected to or extended to a service from its country of origin. At present, the Open Skies Agreement only removes restrictions up to the fifth freedom of airspace. The ASEAN Air Transport Market (ASEAN-SAM), also known as the ASEAN Open Sky/Policy Agreement, is the most important aviation policy in the region. It aims to develop a single and unified air transport market among ASEAN members in Southeast Asia, which is expected to be adopted on 1 Although not all agreements have been signed, 1 January 2015 will start on 1 January 2015. [1] The air transport policy was proposed by the ASEAN Air Transport Working Group, supported by the ASEAN Senior Transport Officials Meeting and endorsed by ASEAN Ministers of Transport. [2] The establishment of ASEAN-SAM was an important element of the roadmap for the establishment of the ASEAN Economic Community. [1] Despite the full ratification, the implementation of the agreement has been cumbersome. While economic liberalisation – that is, the ASEAN countries, which allow foreign airlines free access to international airports – is almost complete, regulatory harmonisation between Member States is still under discussion and is not yet enshrined in a treaty. By 2030, the ASEAN Open Skies Agreement is expected to create more than one million jobs. It is also expected to contribute nearly $100 billion annually to the economy. In addition, ASEAN citizens will likely be able to travel up to three times more easily than they do today.

How can this be beneficial for airlines? Shukor Yusof, an aviation analyst and founder of Malaysia-based Endau Analytics, however, said the ASEAN Open Skies might not offer many benefits due to the industry`s profitability. While the open ski policy promises many benefits, it may not work without the support of infrastructure, such as airport availability. In fact, not all airports in ASEAN member countries are open to politics. For example, Indonesia, the largest ASEAN country, only opens its five main airports. ASEAN Open Skies cannot exploit its full potential without the availability of adequate infrastructure. Despite the fact that airport support is essential, not all ASEAN airports are open to this policy. In the best interest of their local industry, some member states restrict their “openness” to the ASEAN open skies policy. This can obviously reduce the potential chances of many air carriers. As the ASEAN region insists on deeper economic integration, better connectivity is important, especially in the areas of communication and transport. The ASEAN Open Skis Agreement is increasingly important to facilitate growth and support the growing number of tourists who, according to independent studies, are expected to reach 145 million by 2023.

“Open skis won`t benefit companies like Malaysia Airlines Bhd, but it will be for AirAsia, because its strategy was very effective in reaching places – intra-Asian segments that weren`t fully served before by other airlines.” As a result, growth will have a domino effect in other related sectors such as MRO aviation services, training, ground handling services, freight and the travel industry. . . .