Asean-Eu Comprehensive Air Transport Agreement
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. A horizontal air services agreement 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 agreement would remove existing restrictions on code-sharing agreements between airlines in the states concerned and allow them to freely assign allocation conditions on long-distance routes and on the regional and national networks of the other country. This is expected to increase “point-to-point” traffic in both ASEAN and EU countries, which will strengthen the position of airports in both regions and create additional demand that could contribute to the creation of critical mass for new routes, including the reopening of abandoned routes during the pandemic. The forth date agreement with ASEAN comes just weeks after the European Commission signed an air pact with Qatar, the first such agreement between the EU and the Gulf region.
The agreement, which contains fair competition provisions, is expected to be concluded before the end of the year. 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 Association of Southeast Asian Nations (Asean) and the European Union are close to concluding a comprehensive air transport 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 adoption of agreements between ASEAN and other parts of the world, such as the current ASEAN-UNION Comprehensive Air Transport Agreement (EUCATA), would be a strategy that could take into account the impact of low demand on ASEAN airlines. Cata negotiations between the European Commission and ASEAN began in June 2016 and eight rounds of CATA negotiations have been held since August 2019.
Signing of an agreement between the European Union and Indonesia on the promotion of air transport [IP/11/818, 30/06/2011] 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.