Open Skies Agreement for ASEAN

Mr Christopher de Souza asked the Minister for Transport how will an open skies agreement within the ASEAN region assist and benefit Singapore and ASEAN states.

Mr Lui Tuck Yew: ASEAN has concluded three air services agreements which collectively provide for unlimited passenger and cargo air services between all ASEAN cities with international airports. The agreements are integral to ASEAN’s vision of a Single Aviation Market, in support of the establishment of an ASEAN Economic Community by 2015. Almost all the ASEAN Member States have ratified the instruments and I am hopeful that we will meet the 2015 timeline to establish this intra-ASEAN open skies.

Intra-ASEAN travel has grown strongly at a compounded annual growth rate of 13% from 2009-2013. Looking ahead, some analysts have projected an annual growth rate of 8% for the next 20 years. Establishing an intra-ASEAN open skies will promote air connectivity within ASEAN and bring about even greater flows of trade, investment and tourism in the region.

For Singapore, pursuing a liberal air services regime in ASEAN and beyond would enable more carriers, local and foreign, to operate to and from Changi, strengthening Changi’s network and connectivity, and anchoring Singapore’s position as an air hub in support of our economic development.

A liberal ASEAN air services regime would also facilitate ASEAN’s air services liberalisation efforts with major Dialogue Partners. These ASEAN-Dialogue Partner air services engagements enable ASEAN to leverage its collective strength to negotiate air services agreements that are more ambitious than what each ASEAN Member State would be able to achieve bilaterally with the Dialogue Partner.

For instance, through the ASEAN-China air services engagement, both sides have concluded the ASEAN-China Air Transport Agreement and two Implementing Protocols. This has provided Singapore and our ASEAN neighbours air rights that are above what each ASEAN Member State has concluded bilaterally with China. ASEAN has also begun air services negotiations with other Dialogue Partners, including South Korea, Japan, and the EU, and we look forward to concluding liberal and mutually beneficial air services agreements with them.