SINGAPORE – Asia’s low-cost carriers will be disappointed but not surprised by reports that ASEAN leaders will fail to meet their timetable for removing passenger restrictions on air routes between the capital cities of the 10 member grouping.
Secretary General of the Association of South-East Asian Nations (ASEAN), Ong Keng Yong, has warned of slow progress towards the end of 2008 deadline.
As the Centre for Asia/Pacific Aviation (CAPA) has noted, “Member nations can opt out of the liberalisation move next year and defer implementing it until 2015.
“Indonesia, for one, has shown by recent actions that it may follow this course of action.”
Minister for State Enterprises, Sofyan Djalil, confirmed Garuda Indonesia would not be privatised this year, as originally proposed, and would defer the sale until 2009, to focus on restructuring the company in the interim “to improve its value before selling it”.
CAPA noted that Ong is optimistic of an ASEAN-China “open skies” agreement by 2010. This could coincide with the timeframe Beijing is using to raise the international competitiveness of its major airlines.
Liberalisation will occur in Asia, but possibly not as quickly as some would hope, said CAPA.
