MANILA, Philippines?The Association of Southeast Asian Nations has moved closer to creating a single aviation market as ASEAN transport ministers signed several agreements on Thursday to remove restrictions on air and air freight services and allow regional airlines to fly to any of the capitals of the 10 member countries.
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.
The deal which most impacts the Philippines is the multilateral agreement on air services which will allow airlines like Cebu Pacific Air and Philippine Airlines to expand their operations in ASEAN capital cities without having to seek additional entitlements.
?It will mean easier access of our own airlines to other ASEAN markets. The air freight deal could also benefit the country although 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,? said Carmelo Arcilla, executive director of the Civil Aeronautics Board.
Transportation Secretary Leandro Mendoza estimates that an open skies agreement could add five million to the Philippines? annual tourist volume, with each tourist spending an average of between $200 and $400.
This would give a critical boost to the economy to enable it to cope with the global financial crisis, he said.
The Philippines received 3.1 million tourists in 2007, according to Department of Tourism data.
The multilateral agreements on air services and the full liberalization of air freight services are part of plans drawn up by ASEAN to foster economic cooperation and growth.
Signing ceremony
The signing ceremony was held in Malacañang Thursday in the presence of Executive Secretary Eduardo Ermita who represented President Macapagal-Arroyo.
The transport ministers are attending the 14th ASEAN Transport Ministers Meeting in Makati this week.
ASEAN groups Indonesia, Thailand, Malaysia, Singapore, the Philippines, Brunei, Vietnam, Burma, Cambodia and Laos.
The agreements signed were the ASEAN Framework Agreement on the Facilitation of Inter-State Transport, ASEAN Multilateral Agreement on the Full Liberalization of Air Freight Services and the ASEAN Multilateral Agreement on Air Services.
Air freight deal
Unlimited third, fourth freedom traffic rights between ASEAN capital cities is set for implementation by end-2008 and unlimited fifth freedom traffic rights by 2010.
The air freight deal, meanwhile, raises capacity for two-way traffic to 250 tons weekly. It also allows designated all-cargo airlines to fly across ASEAN territories and to make stops for traffic or non-traffic purposes in all international airports. Implementation of the agreement is scheduled by the end of the year.
The so-called ?freedoms of the air? are restrictions that govern international air travel and are decided through bilateral agreements between countries which are signatories to the Chicago Convention of 1944.
Freedoms of the air
The first freedom is the right to fly and carry traffic over the territory of another partner to the agreement without landing; the second freedom, the right to land in those countries for technical reasons such as refueling without boarding or deplaning passengers; the third freedom, the right of an airline from one country to land in a different country and deplane passengers coming from the airline?s own country; the fourth freedom, the right of an airline from one country to land in a different country and board passengers traveling to the airline?s own country; and the fifth freedom the right of an airline from one country to land in a second country, to then pick up passengers and fly on to a third country where the passengers then deplane.
