ASEAN moves towards a Single Aviation Market

I have been trying to disentangle the progress being made by the 10 member states of the Association of Southeast Asian Nations (ASEAN) towards an ASEAN Single Aviation Market (ASAM) by 2015 and related engagement with dialogue partners. What follows are some key source documents.

On 11 November 2010 in Brunei ASEAN Transport Ministers jointly announced progress towards "open skies".

This included signing the ASEAN Multilateral Agreement on the Full Liberalisation of Passenger Air Services (MAFLPAS). This has a Protocol 1 [link?] and a Protocol 2.

This new agreement extends the 2009 ASEAN Multilateral Agreement on Air Services (MAAS), which does not cover all international airports within ASEAN.

The MAFLPAS also compliments the 2009 ASEAN Multilateral Agreement on the Full Liberalisation of Air Freight Services (MALAFS).

Also signed in Brunei on 12 November 2010 was a Memorandum of Understanding on ASEAN's Air Services Engagement with Dialogue Partners. This is designed to ensure that priority is given to committing to the ASEAN internal air transport market ahead of any air transport agreements with ASEAN's dialogue partners.

Australia has funded two major research projects through the ASEAN-Australia Development Cooperation Program (AADCP) focusing on the ASEAN air transport market that also provide useful background on other regional efforts around the world:

• Developing ASEAN's Single Aviation Market and Regional Arrangements with Dialogue Partners (2008) by Thomas, Stone, Tan, Drysdale and McDermott (Executive Summary and Abstract) (Project No. 07/003)
• Strategic Directions for ASEAN Airlines in a Globalizing World (Project No. 04/008)
  Overview
  Competition and Consumer Protection Policy
  The Emergence of Low Cost Carriers in South East Asia
  Ownership Rules and Investment Issues
  Development of Principles for the Implementation of Subsidies and State Aid 

Earlier research included:

• Preparing ASEAN for Open Skies (2004) by Monash International

As reported by The China Post on 9 May 2010 Indonesia does not seem to have bought into the 2015 deadline for ASAM. This is reflected in its lack of ratifications by some member states to the key ASEAN air transport agreements.

In an earlier post I noted that progress was being made towards an ASEAN agreement with China. The Air Transport Agreement (Protocol 1) was announced in Brunei on 12 November 2010. The Agreement is limited to an exchange of third/fourth freedom rights with officials to pursue an exchange of fifth freedom rights. However, given the size of the two air transport markets and their expected rapid growth in coming decades this may turn out to be the beginnings of one of the major global moves towards air transport liberalisation, akin to the economic deregulation of the air transport markets within the United States and the European Union.

India too has been working towards a closer air services relationship with ASEAN announcing on 7 November 2008 an aviation cooperation framework.

I am still looking for a good write up of what has been happening within ASEAN but see some parallels in the staged approach to the deregulation of the air transport market adopted by the European Union and the Pacific Islands.

ASEAN-China air transport agreement close?

On 29 October 2010 Channel News Asia reported from Hanoi comments by Singapore's Prime Minister Lee that he expected an ASEAN-China Air Transport Agreement to be concluded next month.

Lee also suggested that ASEAN should be pushing for 'open skies' within the ASEAN region. On 27 April 2010 the Business Mirror reported comments from a Philippines official that only one unnamed country had yet to agree to a Multilateral Agreement for the Full Liberalisation of Passenger Air Services (MAFLPAS).

ASEAN already has a 2009 Multilateral Agreement on Air Services, which allows unlimited flights between capital cities by the airlines of member states, and a 2009 Multilateral Agreement on the Full Liberalisation of Air Freight Services.

ASEAN moves further towards a single aviation market

As the three-day 25th Association of Southeast Asian Nations (ASEAN) Senior Transport Officials Meeting (STOM) reached its conclusion in Lapulapu City, Cebu, on 29 May 2008 the Philippine Information Agency announced that ASEAN senior transport officials had agreed to recommend signing the ASEAN Multilateral Agreement on the Full Liberalization of Air Freight Services and Air Services.

The senior transport officials among the 10-member ASEAN nations will endorse the signing of the ASEAN multilateral agreement to the ASEAN transport leaders who will be meeting during the 14th ASEAN Transport Ministers (ATM) Meeting in November 2008 in Manila in time for the implementation of the regional integrated air transport services by December 2008.

The reported aim is to have a single aviation market for ASEAN by 2015.