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ASEAN, EU conclude the world’s first bloc-to-bloc Air Transport Agreement

Fri Jun 04, 2021 3:52 pm

ASEAN/EU Open Skies agreement. Interested about the section concerning ‘14 fpw either via or beyond a third country’? Is this countries outside the scope of the agreement, or meaning MH can theoretically operate KUL-BKK-FRA? Or would this agreement mean any ASEAN/EU airline can operate from anywhere in their bloc to anywhere in the other bloc? ... agreement/
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Re: ASEAN, EU conclude the world’s first bloc-to-bloc Air Transport Agreement

Fri Jun 04, 2021 7:29 pm

Very interesting development. If I read correctly then a substantial step forwards in legislative terms for European aviation, whom certain individual countries (like Germany) have held out against ex EU airlines in landing rights to their individual country, in order to protect Lufthansa say. If my understanding is correct then this would give freedom to the blocks, both ways, which is a real win for consumers giving more choice and competition on fares. I'm not sure if there ever has been protectionism from ASEAN countries to ex ASEAN airlines but in theory this should end it if there was.

In answer to your questions (if I understand the announcement correctly):
1) "airlines will be able to fly up to 14 weekly passenger services, and any number of cargo services via and beyond to any third country" then yes, it is saying that airlines will have up to 14 flights a week where they can utilise 5th freedom rights. So think SQ flying SIN-FRA-JFK (JFK outside the EU block) or BA (before Brexit) flying LHR-SIN-SYD (SYD outside ASEAN). I'm not sure this will change anything that much as how many airlines in both blocks plan to do more than two a day 5th Freedom flights? Cargo is unlimited it seems in 5th Freedom which makes sense for all.
2)"Or meaning MH can theoretically operate KUL-BKK-FRA". I believe it also means this and point to point (MH flying stand-alone BKK to FRA as you say EU/ASEAN), so in effect allowing 7th Freedom rights, which would be great news. It's a little bit unclear in the ASEAN announcement but the Reuters article below seems to suggest this, but this could be a misinterpretation. If so it seems to be creating an 'open skies' arrangement as the EU-USA has, which is great news for consumers.

So unlimited access to each other's blocks, definitely 5th Freedom rights being formalised on a firm basis, possibly 7th Freedom as well.

The Reuters article also says “The general idea here is to make ASEAN and EU airlines more competitive compared to airlines from other regions, which have been aggressively gaining market share in the ASEAN-EU market,” I think we can assume they mean the ME3 here... ... SKCN2DG146
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Re: ASEAN, EU conclude the world’s first bloc-to-bloc Air Transport Agreement

Fri Jun 04, 2021 9:21 pm

EU-ASEAN have had default open skies already since 2019 with 37 of then 38 countries already having ratified the agreement.
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Re: ASEAN, EU conclude the world’s first bloc-to-bloc Air Transport Agreement

Tue Jun 08, 2021 11:59 am

In the MH example above, MH could get the traffic rights but would they also have to pay TG royalties for the BKK-FRA sector. This is the problem BI faced with their BWN-BKK-DXB/AUH-FRA flight- the royalties were quite high.

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