After approximately six years of negotiations, the European Union (EU) and the Association of Southeast Asian Nations (ASEAN) have signed a comprehensive air transport agreement that will expand air transport opportunities that will effectively strengthen the connectivity between the two regions by effectively connecting 1.1 billion people.
Negotiations for this agreement began in 2016 and were recently concluded on October 17, 2022, at the 28th ASEAN Transport Ministers’ Meeting in Bali, Indonesia. The signed agreement was set to be immediately enforced.
Air traffic between the two regions has nearly doubled in the last fifteen years so there was a great need for the revision of international travel and transport regulations. The signing of this new agreement will facilitate greater connectivity, expansion, and diversification of markets between the two regions.
The agreement provides comprehensive regulation that covers various areas such as competition, safety, security, air traffic management and environmental protection in order to avoid distortions and abuses of power from any of the two Parties.
A major component of the agreement declares that the parties will be able to exercise updated freedom traffic rights. In particular, the agreement will grant the right for any commercial flight originating in the European Union to fly over territories associated with ASEAN without the need to land, and vice versa.
Regarding competition, the parties accept to maintain a “fair and competitive environment” in order to offer the air carriers equal opportunities in the international marketplace. The measures include adopting and maintaining competition laws, establishing an independent competition authority, and eliminating all forms of discrimination or unfair practices.
The Agreement tackles climate change and environmental protection, aiming to promote the sustainable development of aviation along with minimizing the effects of aviation on the environment.
In terms of aviation safety and security, the Parties will facilitate the exchange of safety information and participate in joint oversight activities. In addition, the Parties will provide each other with all necessary assistance necessary to preemptively address any potential threat to the security of civil aviation.
When it comes to air management, the Parties compromised on policy issues relating to the performance of air traffic management, with the intention of optimizing flight efficiency, reducing cost, and enhancing the safety and capacity of air traffic flows between the existing air traffic management systems of the Parties.
Until the signing of this agreement, air services operating under bilateral agreements did not cover these matters. This new agreement will replace previous bilateral aviation agreements between EU Member States and will provide a new single set of rules.
In short, the new EU – ASEAN Air Transport Comprehensive Agreement provides multiple advantages and business opportunities for EU and ASEAN companies and ensures fair and transparent market conditions.
Lupicinio International Law Firm strongly recommends reading this agreement as this inter-regional air transport agreement at the global level reflects the latest political trends in air transport regulation, and will offer more opportunities for ASEAN and EU companies to provide passenger and cargo services between and beyond the two regions.
******
More information:
Lupicinio International Law Firm
C/ Villanueva 29
28001 Madrid
P: +34 91 436 00 90
info@lupicinio.com
