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Mekong sub-region to liberalise air services

Thursday, 17 May 20073 min read

YANGON – The Mekong sub-region, which encompasses Cambodia, Laos, Myanmar and Vietnam (CLMV), has agreed to develop airline services between the four countries, the Vientiane Times reports.

An agreement was sealed at last week’s meeting of the directors general of Sub-Regional Civil Aviation.

According the Director General of the Lao Civil Aviation Department, Yakua Lopangkao, CLMV will grant travel privileges to the citizens of each country, without the same limits on the number of flights and passenger quotas as in the the past.

Yakua also said that the four countries would give investors more freedom in developing air transport services, such as using the latest technology for issuing tickets or providing aircraft maintenance.

He said that in the past these countries had allowed only local investors to perform these services, but they would now open them up to investors from the other CLMV countries.

Yakua explained that the four countries were trying to develop their air transport services to meet international standards, so as to be able to compete not only with each other but also with other Asean members, such as Thailand and Singapore .

He said the latest agreement would enhance air transport cooperation services within the group, and would boost tourism, trade and investment. It would especially benefit the business sector, as entrepreneurs would now be able to move more easily between the four countries.

The proposal to enhance cooperation in air services in the sub-region dates back to 1998.

Yakua said, “We need time to improve ourselves as a group because we cannot openly try to compete with other countries in the region yet. It is more beneficial if we start by competing with each other.”

He said this would be one way to protect the Lao Airlines’ market from the impact of competition, as well as the airlines of the other three countries.

“Now we ask that other Asean members give us some time to adjust, before we link ourselves in cooperation with the older members. This will help to minimise the impact on our smaller market,” Yakua said.