ASEAN will see the implementation of open skies policy. In fact, we have already got the feeling of this policy of implementation already. The continues war pricing between airlines and the continues war for a piece of the route (eg. KUL-SIN) has given us, the consumers, the hands down win.

I read in interest of the cover story of TheStar’s Saturday Biz Week cover story, Competition up, fares down.

As a consumer I yearn for this day to come, where open skies policy is fully implemented and everyone can enjoy low fares given by numerous airlines. But, commercially as airline’s middle agent, we do not want to see this happening as we will lose out due to airline’s direct sales to consumer. That aside, I’m looking at this phenomenon as a consumer now.


(source: The Star)

You see, we should be having even more open skies policy with many countries in the world. This would allow even more people to travel and when people travel, they move multiple economic activities.

For example, when Jet Airways and Tiger Airways started flying into KLIA, the market grew approximately about 6-7 percent. Every other airlines that flies into KLIA, will do the same too. We should start gaining the status of regional hub! With the liberation of open skies policy, we can! Just that, we should have done it earlier. Now, we have to compete with Singapore and Thailand as regional hub.

Over the past ten years, we have seen several airlines pullout from KUL. Some of them are British Airways, Qantas Airways, Aeroflot and Lufthansa. Why? Is it the policy within our government that is pushing them away or is it the open skies that is not liberated?

The roadmap to full ASEAN open skies policy implementation is at 2015, which many of us hope it will be realized ON THE DOT.


(Source: The Star)

Now, when you see the chart above, you will ask why so little open skies agreement Malaysia has with other countries? We are little slow in implementation of anything good. Just put it that way. Our neighbour Singapore is otherwise had an earlier start and now, Singapore is like an aviation hub in the region. No doubt to it.

You see, in Europe, the aviation industry liberalization took place in 1987. We in ASEAN only wants to get it started a year ago. In ASEAN, it is a little bit different because of the huge differences in economic capacities, industry development and infrastructure. How can a region with such huge differences participate and gain from such policy? ASEAN needs to acknowledge these differences to be able to gain from the benefits of an open skies policy.

One biggest barrier is transparency which the ASEAN governments is not quite ready to let it go. There are calls for greater transparencies. The ASEAN open skies policy can really spur tourism and other economic activities within its chain effect. Open skies policy would benefit most countries, as it would allow for the improvement of infrastructure, gaining of skilled workers and overall establishment of smaller airlines before entering the competition.

See how AirAsia has grown and just take a look at LCCT. Not to mention, Malaysia Airlines is also the hot talks of the town now. Never anyone has thought you could fly cheap on Malaysia Airlines. Thanks to the fierce competition with AirAsia, now we all can.

In other words, I WANT CHEAPER FARES and thus I as a consumer would want to see this open skies policy implemented ASAP! :D