ASEAN airline liberalisation faces headwinds
Subject Update on ASEAN airline sector liberalisation. Significance ASEAN seeks a fully liberalised civil aviation market: in May, Indonesia and Laos joined the eight other member states in ratifying the 'open skies' agreement. Formally termed the ASEAN Single Aviation Market (ASEAN-SAM) and officially activated in January 2015, the scheme has sparked rapid growth in regional aviation, particularly from low-cost carriers (LCC). As a facilitator of passenger and freight movements, aviation is an important component of the ASEAN Economic Community (AEC), the bloc's economic integration and trade liberalisation effort. Impacts The need for airline-related infrastructure, security, technology and training will grow. Harmonisation of airlines' technical and other regulatory standards will be difficult. ASEAN states will find it challenging but ultimately necessary to craft a common trade negotiation bloc. Poor airline infrastructure could pose security dangers. Demand for ASEAN airfreight services will grow.