ASEAN members sign pact to remove curbs on passenger and cargo services

The 10 member-countries of the the Association of Southeast Asian Nations (ASEAN) have signed agreements that will eliminate restrictions on air passenger services and air freight services and also will allow regional airlines to fly to any of the capitals of the member-countries by 2010.

The multi-lateral agreements on air passenger services and the full liberalisation of air-freight services are part of plans drawn up by the ASEAN to promote economic cooperation and growth.

The Association of Southeast Asian Nations is a geo-political and economic organisation of 10 countries located in Southeast Asia. It was was formed in Bangkok, the capital of Thailoand, on August 8, 1967, by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Brunei, Vietnam, Lao PDR, Myanmar and Cambodia joined the ASEAN later. The 10 member-countries has a total area of 4.5 million square kilometres. The aims of the ASEAN include the acceleration of economic growth, social progress, cultural development among its members, the protection of the peace and stability of the region, and providing opportunities for the member-countries to discuss differences peacefully

The landmark agreements on air passenger services and air freight services were signed at Malacanang Palace, the official residence of the President of the Philippines, a statement from the ASEAN said.

The statement explained: “Under the agreements, unlimited fifth freedom rights, allowing member-countries the right to fly to each other’s capital cities, will be in place by 2010. By 2015, all of ASEAN will be a unified aviation market. Air transport is a vital component of the proposed ASEAN economic integration because it would allow exchange of people, it would facilitate trade and cultural exchange.”

The agreements include the ASEAN Framework Agreement on the Facilitation of Inter-State Transport, the ASEAN Multi-lateral Agreement on the Full Liberalisation of Air Freight Services, and the ASEAN Multilateral Agreement on Air Services – all of these aimed at removing the current restrictions gradually.

While, unlimited third and fourth freedom traffic rights between the capital cities of ASEAN member-countries is set for implementation by the end of 2008, unlimited fifth freedom traffic rights between the capital cities of ASEAN member-countries is set for implementation by 2010.

“These air rights,” the ASEAN statement added, “define regulated access of a territory’s airspace, including flying across a signatory-country’s territory (third freedom), making stops for refueling and other non-traffic purposes (fourth freedom), and picking up passengers at a different country’s airport before proceeding to the final-destination country (fifth freedom). The multi-lateral agreement is encompassing, which means that each contracting party has to allow the other signatories to conduct international service on its territory and airspace as much as it will also be allowed on others. Each contracting party can designate its own local airlines that could take advantage of the accord.”

The deal allows designated airlines to fly across ASEAN territories and to make stops for traffic or non-traffic purposes in all points with international airports in the ASEAN region.

The media quoted stakeholders in the aviation sector as saying that the deal – which will impact the aviation industry of the Philippines most – would “free up regional travel within ASEAN” and that the air services agreement “essentially relaxes regulatory barriers for airlines that used to seek additional entitlements every time they wanted to expand in other ASEAN markets.”

Carmelo Arcilla, executive director of the Philippines Civil Aeronautics Board (CAB), said: “The passenger services agreement impacts the Philippines most. It would mean easier access of our own airlines to other ASEAN markets. The air-freight deal could also benefit the country though it is more futuristic in nature since all cargo traffic is still low within the region, but at least there will be no barriers when traffic does pick up.” (The Civil Aeronautics Board is a government agency of the Philippines tasked to regulate, promote and develop the economic aspect of air transportation in the Philippines and to ensure that existing CAB policies are adapted to the present and future air commerce of the Philippines.)