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ASEAN Open Sky Agreement / ASEAN Single Aviation Market
Saturday, 30 April 2016
ASEAN Open Skies: Sky's the limit for ASEAN airlines flying within bloc
By Karamjit Kaur, Aviation Correspondent, The Straits Times, 29 Apr 2016
ASEAN countries pushing for free skies, to give travellers more flights, lower fares and new destinations, have reached a key milestone.
All 10 member states have ratified a deal allowing airlines that meet safety requirements to fly freely from their home countries to any city within the bloc.
In other words, the airlines from ASEAN countries will be able to make as many flights within the bloc as they want - as long as the airports can support them. The deal takes effect immediately.
Typically, air services are bound by government-to-government deals that stipulate how many flights airlines can operate and with which aircraft size.
But the ASEAN agreement, sealed about four months behind schedule, comes with a caveat from Indonesia. For now, it has agreed to include just five airports in Jakarta, Bali, Surabaya, North Sumatra and South Sulawesi in the deal.
Countries are sometimes reluctant to remove all barriers for fear that their carriers may not be able to compete effectively with foreign airlines, though experts say the ASEAN deal is still a positive step.
Aviation law professor Alan Tan of the National University of Singapore told The Straits Times: "This is great news for travellers... They can look forward to more flights at more competitive prices."
Among the big winners are low-cost carriers like AirAsia, Tigerair and Cebu Pacific, whose operating models are perfectly suited for the region where no two points are more than a few hours apart.
Six in 10 intra-ASEAN flights are already cornered by low-cost carriers and the proportion is expected to increase.
Operationally, though, a significant constraint arises in relation to airport slots as the number of flights and passengers increases.
For example, airports in Jakarta and Manila that have already reached maximum capacity will have to move fast to expand, according to Prof Tan, otherwise unlimited flight capacity is meaningless.
As part of integration, member states are also working towards safer and more secure skies, as well as enhancing traffic management efficiency and capacity.
Operating as a single sky instead of 10 separate air zones will allow for more direct and shorter flights within the region, for example. This will benefit not just travellers but also airlines, which will be able to operate more cost-effectively.
Prof Tan pointed out that ASEAN countries should continue to liberalise.
For example, an airline from one country within ASEAN should be allowed to drop off and collect traffic from a second country on its way to a third - what the industry refers to as "fifth freedom rights".
- See more at: http://ifonlysingaporeans.blogspot.com/2016/04/asean-open-skies-skys-limit-for-asean.html#sthash.02Q3Db3f.dpuf
==================================
As ASEAN pushes towards deeper economic integration, greater connectivity is important, especially so in communications and transport. Having the ASEAN Open Skies agreement is important to help facilitate growth as well.
Analysts Channel NewsAsia spoke to have said Singapore is poised to leverage the benefits of a liberalised ASEAN market, but they also noted that there are kinks to be ironed out before the skies are truly open.
ASEAN SINGLE AVIATION MARKET TO BOOST TRADE
With the launch of the ASEAN Economic Community, Southeast Asia looks poised to tap the economic benefits of a regional grouping. This is being supported by an Open Skies agreement, allowing carriers from all 10 member nations to fly freely within the region.
An ASEAN Single Aviation Market (ASEAN-SAM) will help increase trade between the nations by boosting the flow of goods and services and easing restrictions. It will also boost travel around the region.
"We think Open Skies is very important for the aviation community and the region. We have seen across the globe that when we have an Open Skies policy, it just encourages traffic. So the more competition we have, the more traffic, the better (the) services and fares offered to the passengers, (which) makes it a very good proposition for the flying public and ultimately for economies across the region,” said Mr Steve Lien, president of Honeywell Aerospace, Asia-Pacific.
But a more liberalised market comes with its own set of challenges. With security a main concern, one key task lies in adopting a homogeneous level of security standards and checks across ASEAN.
Infrastructure support is another challenge - not just on the ground but also in the skies.
"So the downside is if the infrastructure isn't ready for it yet, it can be a problem. The infrastructure in aviation is really two things. One is the ground infrastructure; its runways, its airports. The second is the airside infrastructure, which means air traffic and how the air traffic is controlled by the relevant authorities,” said Mr Lien.
AIRLINES NEED TO BE READY FOR EXPANSION
The airlines themselves also need to be ready.
In the past decade, there has been an explosion of low-cost carriers in the region. But they have been struggling of late and may not be ready for any spurt in expansion.
Meanwhile, full service airlines, which have been facing increasing competition from budget airlines, may face a tighter squeeze when other national carriers are allowed to compete on their home turfs.
The prospect of increased flight frequency may not necessarily translate to more revenues.
"It is all about capacity management. So there is no point having a frequency of flights with empty seats. You've got that balance of frequency with load factors. Load factors are going to be key for any efficient operation,” said Mr Colin Mahoney, Rockwell Collins’ senior vice president of international services and solutions.
With a liberal aviation policy, Singapore has already concluded air services agreements with more than 130 countries and territories, including 60 Open Skies agreements.
The Civil Aviation Authority of Singapore noted that Open Skies for the ASEAN market would support both trade and tourism.
The number of tourists coming into ASEAN is projected to hit 145 million by 2023. With Singapore expecting on average between 14 million and 16 million tourists yearly, national carrier Singapore Airlines said the new liberalised market will play a key role in boosting tourism for Singapore and the region.
Long Thanh Int'l airport - Vietnam ( masterplan ). Max capacity. 100 million pax 4F airport
Saturday, 30 April 2016
ASEAN Open Skies: Sky's the limit for ASEAN airlines flying within bloc
By Karamjit Kaur, Aviation Correspondent, The Straits Times, 29 Apr 2016
ASEAN countries pushing for free skies, to give travellers more flights, lower fares and new destinations, have reached a key milestone.
All 10 member states have ratified a deal allowing airlines that meet safety requirements to fly freely from their home countries to any city within the bloc.
In other words, the airlines from ASEAN countries will be able to make as many flights within the bloc as they want - as long as the airports can support them. The deal takes effect immediately.
Typically, air services are bound by government-to-government deals that stipulate how many flights airlines can operate and with which aircraft size.
But the ASEAN agreement, sealed about four months behind schedule, comes with a caveat from Indonesia. For now, it has agreed to include just five airports in Jakarta, Bali, Surabaya, North Sumatra and South Sulawesi in the deal.
Countries are sometimes reluctant to remove all barriers for fear that their carriers may not be able to compete effectively with foreign airlines, though experts say the ASEAN deal is still a positive step.
Aviation law professor Alan Tan of the National University of Singapore told The Straits Times: "This is great news for travellers... They can look forward to more flights at more competitive prices."
Among the big winners are low-cost carriers like AirAsia, Tigerair and Cebu Pacific, whose operating models are perfectly suited for the region where no two points are more than a few hours apart.
Six in 10 intra-ASEAN flights are already cornered by low-cost carriers and the proportion is expected to increase.
Operationally, though, a significant constraint arises in relation to airport slots as the number of flights and passengers increases.
For example, airports in Jakarta and Manila that have already reached maximum capacity will have to move fast to expand, according to Prof Tan, otherwise unlimited flight capacity is meaningless.
As part of integration, member states are also working towards safer and more secure skies, as well as enhancing traffic management efficiency and capacity.
Operating as a single sky instead of 10 separate air zones will allow for more direct and shorter flights within the region, for example. This will benefit not just travellers but also airlines, which will be able to operate more cost-effectively.
Prof Tan pointed out that ASEAN countries should continue to liberalise.
For example, an airline from one country within ASEAN should be allowed to drop off and collect traffic from a second country on its way to a third - what the industry refers to as "fifth freedom rights".
- See more at: http://ifonlysingaporeans.blogspot.com/2016/04/asean-open-skies-skys-limit-for-asean.html#sthash.02Q3Db3f.dpuf
==================================
As ASEAN pushes towards deeper economic integration, greater connectivity is important, especially so in communications and transport. Having the ASEAN Open Skies agreement is important to help facilitate growth as well.
Analysts Channel NewsAsia spoke to have said Singapore is poised to leverage the benefits of a liberalised ASEAN market, but they also noted that there are kinks to be ironed out before the skies are truly open.
ASEAN SINGLE AVIATION MARKET TO BOOST TRADE
With the launch of the ASEAN Economic Community, Southeast Asia looks poised to tap the economic benefits of a regional grouping. This is being supported by an Open Skies agreement, allowing carriers from all 10 member nations to fly freely within the region.
An ASEAN Single Aviation Market (ASEAN-SAM) will help increase trade between the nations by boosting the flow of goods and services and easing restrictions. It will also boost travel around the region.
"We think Open Skies is very important for the aviation community and the region. We have seen across the globe that when we have an Open Skies policy, it just encourages traffic. So the more competition we have, the more traffic, the better (the) services and fares offered to the passengers, (which) makes it a very good proposition for the flying public and ultimately for economies across the region,” said Mr Steve Lien, president of Honeywell Aerospace, Asia-Pacific.
But a more liberalised market comes with its own set of challenges. With security a main concern, one key task lies in adopting a homogeneous level of security standards and checks across ASEAN.
Infrastructure support is another challenge - not just on the ground but also in the skies.
"So the downside is if the infrastructure isn't ready for it yet, it can be a problem. The infrastructure in aviation is really two things. One is the ground infrastructure; its runways, its airports. The second is the airside infrastructure, which means air traffic and how the air traffic is controlled by the relevant authorities,” said Mr Lien.
AIRLINES NEED TO BE READY FOR EXPANSION
The airlines themselves also need to be ready.
In the past decade, there has been an explosion of low-cost carriers in the region. But they have been struggling of late and may not be ready for any spurt in expansion.
Meanwhile, full service airlines, which have been facing increasing competition from budget airlines, may face a tighter squeeze when other national carriers are allowed to compete on their home turfs.
The prospect of increased flight frequency may not necessarily translate to more revenues.
"It is all about capacity management. So there is no point having a frequency of flights with empty seats. You've got that balance of frequency with load factors. Load factors are going to be key for any efficient operation,” said Mr Colin Mahoney, Rockwell Collins’ senior vice president of international services and solutions.
With a liberal aviation policy, Singapore has already concluded air services agreements with more than 130 countries and territories, including 60 Open Skies agreements.
The Civil Aviation Authority of Singapore noted that Open Skies for the ASEAN market would support both trade and tourism.
The number of tourists coming into ASEAN is projected to hit 145 million by 2023. With Singapore expecting on average between 14 million and 16 million tourists yearly, national carrier Singapore Airlines said the new liberalised market will play a key role in boosting tourism for Singapore and the region.
Long Thanh Int'l airport - Vietnam ( masterplan ). Max capacity. 100 million pax 4F airport
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