Joko Purwanto is an energy and transport economist at the Economic Research Institute for ASEAN and East Asia (ERIA), Jakarta. Panayotis Christidis is a senior researcher at the European Commission, Joint Research Center, Seville, Spain. The opinions expressed are theirs. The EU and Indonesia agree on a horizontal agreement on air services [IP/09/1236, 17/08/2009] A horizontal agreement on air services between the EU and Singapore was signed on 9 June 2006. This agreement allows any EU airline to fly between Singapore and any EU member state in which it is established and where there is a bilateral agreement and traffic rights with Singapore. It does not replace bilateral agreements, but adapts them to bring them in line with EU law. This is an important step in relation to the traditional organisation of air transport based on nationality restrictions and complements the EU`s internal external aviation market. The strategy would also strengthen competition in the regional aviation market – improve efficiency and reduce costs. On the other hand, ASEAN countries may have to put in place cabotage principles that guarantee a minimum of holding domestic shares in foreign companies, and to develop and implement high standards of entry in areas such as security and security. “We hoped to have signed the agreement now, but we will get it sooner rather than later,” Hololei said. CATA ASEAN-EU will be the first block-to-block agreement at the intercontinental level and will cover a wide range of progressive regulatory convergences: market access, security, security, air traffic management, social protection, consumer and environmental protection, fair competition, etc.
This agreement is expected to help the ASEAN aviation industry in two respects. On 7 June 2016, the Council authorised the Commission to open comprehensive air transport negotiations with ASEAN. The future EU-ASEAN Comprehensive Air Agreement (CATA) will be the first bulk air transport agreement and will cover market access and a wide range of areas (security, air traffic management, social protection, consumption and environment, fair competition, etc.) in which regulatory convergence should be phased in. Negotiations are currently underway. The EU and Indonesia sign an agreement to promote air transport [IP/11/818, 30/06/2011] The Association of Southeast Asian Nations (Asean) and the European Union are close to concluding a comprehensive air services agreement (CATA) between the two blocs after an eighth round of negotiations in Salzburg, Austria. When CATA Asean-EU is completed, it will ease the limits of air traffic growth on both sides to enable better connectivity while allowing both areas to expand and diversify their markets. The proposals for an “open skies” agreement between the EU and ASEAN were first announced in February 2014. The agreement would go beyond traffic rights to promote cooperation in air traffic safety and management.
An EU report published in 2016 estimates that it could bring an economic benefit of 7.9 billion euros in the first seven years. Firstly, the agreement should improve the right to fly between countries or what the International Civil Aviation Organization calls the “5th freedom” for ASEAN and EU airlines.