ASEAN Integration and Open Skies Policy

Abstract

This chapter delves into the ASEAN Open Skies Policy (OSP) as a pivotal instrument driving regional integration. It examines the OSP’s core objective of liberalising air travel within the ASEAN bloc, aiming to stimulate economic growth, bolster the tourism sector, and enhance overall connectivity. The chapter provides a comprehensive analysis of the policy’s impact on the aviation industry, meticulously highlighting its opportunities and challenges. It explores how the OSP fosters competition among airlines, potentially leading to lower fares, increased flight frequency, and expanded route networks, ultimately benefiting travellers and businesses alike. However, the chapter also acknowledges the challenges faced by national carriers in adapting to a more competitive landscape and the need for regulatory harmonisation to ensure fair competition. Furthermore, the chapter delves into the crucial role of enhanced air connectivity in fostering broader economic development within the ASEAN region. It examines how improved connectivity can attract foreign direct investment, facilitate trade by reducing transportation costs, and promote knowledge sharing and tourism. Finally, the chapter underscores the importance of sustained collaboration and robust policy coordination among ASEAN member states. It argues that such collaborative efforts are essential to overcome potential roadblocks, fully realise the OSP’s transformative potential, and ultimately achieve a truly integrated and thriving ASEAN aviation market.