Advancing the ASEAN Single Aviation Market (ASAM)

Adli AmirullahCoordinator, Economic and Business UnitIDEAS

Outline

1. Introduction

2. Challenges in ASAM

3. Recommendation

4. Conclusion

INTRODUCTION

Objective of ASAM

Develop a unified and single aviation market among ASEAN Member States (AMS) in Southeast Asia

Become a key component of the road map for the establishment of the ASEAN

Economic Community (AEC)

Replace existing unilateral, bilateral, and multilateral air service agreement states which are inconsistent with its

provision

“ASEAN Member States need to undertake continued discussion on the way forward and identify concrete steps to establish ASAM” –p17

• Organized a Roundtable discussion on Advancing ASAM

• Conducted in Kuala Lumpur on 9th May 2017

• Discuss 3 main issues;

i. Full implementation of ASAM

ii. Simplification of regulation

iii. Airline ownership

• Highlight key challenges

• Attended by various stakeholders; Researcher, Academician, Airlines representatives, Malaysia Department of Civil Aviation (DCA) representative, and government representatives.

• Endorsed by Dato Liow Tiong Lai, Minister of Transport

Challenges in ASEAN Single Aviation Market (ASAM)

Challenges in ASAM

– Director General (DG) of the Department of Civil Aviation (DCA) of ASEAN Member States does not have a platform to meet regularly to discuss regarding this matter

– ASAM should steer the region towards a common oversight agency to oversee technical matters or potentially to become a regional regulator

– Eg. Joint Aviation Authority (JAA) in Europe or Regional Safety Oversight Organisation (RSOO) guided by International Civil Aviation Organization (ICAO)

1. No common ASEAN aviation agency

2. No harmonised regulation

– No completion of Mutual Recognition Agreement (MRA)

– Eg. No mutual recognition of license and certification for personnel (pilots, engineers, air traffic controllers) and equipment (aircraft) throughout ASEAN

Challenges in ASAM

3. No development towards opening up 7th, 8th, and 9th freedom

– No clear timetable to allow the commencementof 7th, 8th, and 9th freedom

– Sensitive topic – but need to address in order tocompete with larger market outside the region

– An effective Single Aviation Market can beachieved like when member countries enjoyunlimited 7th freedom.

– Possibility for Community Carrier

Challenges in ASAM

Recommendation to advance ASEAN Single Aviation Market (ASAM)

1. Revise the institutional arrangement for effective implementation of ASAM

Director General (DG) of the Department of Civil Aviation (DCA) of ASEAN Member States meet multiples times a

year

1. To have deeper discussion on technical and regulatory matters

2. Deal with harmonisation of regulation

3. Work towards establishment of Regional

Safety Oversight Organisation (RSOO) for

ASEAN

4. The DG meetings can be supported by dedicated working groups throughout

the year.

Recommandations

• Standards need not to be UNIFORM, but harmonized to asufficient degree to allow cross-border enforcement co-operation.

• Are the recommendations of the ASEAN Air TransportIntegration Project (AATIP) being utilise? Specifically related to Mutual Recognition Arrangement

(MRAs) for technical personnel To support the attainment of a safe, secure, and

sustainable ASAM based on high regulatory standards

• Monitoring of the implementation of the MRAs and regulationshould come under the purview of the Regional SafetyOversight Organisation (RSOO) or future regulator for ASEAN

2. Harmonise regulations

Recommandations

3. Building an ASEAN Community Carrier

• Need more deeper discussion towards this goal covering bothlegal and technical matters

• Retain the “substantial ownership and effective control” rulefor AMS own carriers only.

• For other ASEAN carriers, the community model shouldbe allow and welcome

• All restriction on ownership and control by single ASEANnationals should be phased out for non-national carrier.

• Majority ownership can be spread out among ASEAN interestas long as effective regulatory control (eg. For safety andsecurity matter) remain with the origin country.

Recommandations

CONCLUSION

Create competition in

the industry

Consumer enjoy a competitive

price

Travellers and exporters have more choices

Improve tourism sector

Increase travel-related business

Improve economic

growth

Create more job opportunities

Benefit of ASAM

"One Vision, One Identity, One Community"

Thank you