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Frost & Sullivan: Southeast Asian Aviation Industry Poised For Success With The Implementation Of Open Skies Policies By 2015

Dave cautioned, "Although this competition is a natural by-product of the introduction of such laws, it is essential to also note the impact that open skies policies can have on the national airline companies."

He observed, "Countries such as India and China have been experiencing rapid growth in air transport services and domestic aviation infrastructure and are major competitors in the market. Other ASEAN countries will be forced to improve their air transport services across the region to remain competitive."

Moreover, there are several restraints in the implementation of open skies policies in the ASEAN region. The current lack of infrastructure in developing ASEAN countries to support the change in policy may lead to overcapacity of airports. With the increase of air-travel within the ASEAN region, the over-utilization of air-space and technical delays may result in a high possibility of air routes within the region becoming overly congested.   

However, in the long run, Frost & Sullivan predicts the implementation of open skies policies will bring about real and spill-over benefits to various industries. With ASEAN countries being some of the main exporters of electronic goods globally, the open skies agreements will look to boost economic and trade growth. Furthermore, the strong trade and tourism industries are set to improve as demand for air transport continues to rise among these regions.

In order to better implement open skies and support growth in the AEC (ASEAN Economic Community), the ASEAN Single Aviation Market (ASAM) is concurrently planned to be implemented by 2015 and will provide commonality in aviation safety, security, air-traffic management and various areas of importance.

"The management of concerns regarding aviation safety, security, tariffs and fair competition will be fundamentally critical to the succession of open skies policies in the ASEAN region.  However, with these kinks and issues ironed out in time, ASEAN as a region can look to benefit heavily from the implementation of these policies," said Dave.

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