In addition, partnerships with ASEAN airlines, inter-airline agreements, codeshare or the creation of an airline alliance can enable EU airlines to access a dynamic market of 650 million people, of whom more than 130 million are already classified as middle class; by 2030, it is expected to be 330 million. MIAMI – In a move that is profoundly changing aspects of air transport between Asia and Europe, the Association of Southeast Asian Nations (ASEAN) and the European Commission have signed the world`s first block-to-block agreement on commercial aviation. This internal aviation market within the European Union could also allow EU airlines to launch new flights to Southeast Asia from outside their home hubs through the agreement, allowing a German airline to connect its flights to the region, for example, from Paris. The world`s first air transport agreement, the ECAA, will promote connectivity and economic development between the 37 ASEAN member states and the EU, the parties said in a joint statement on Friday. The agreement allows ASEAN and EU airlines to operate an unlimited number of flights between the two regions and operate up to 14 weekly passenger services and an unlimited number of cargo services across and beyond a third country. Hailed as a “historic” agreement, question marks have been raised over what exactly is so revolutionary about a recently concluded air transport pact between the EU and the Association of Southeast Asian Nations (ASEAN) bloc. Transport Commissioner Adina Vălean agrees: “The conclusion of this first block-to-block air transport agreement is an important step in the EU`s external aviation policy. It offers essential guarantees of fair competition for our European airlines and industry, while strengthening mutual trade and investment prospects in some of the world`s most dynamic markets. “The general idea of this agreement is certainly positive and could facilitate cooperation in other related areas, even if there are no examples of new routes that would not have been possible without this agreement,” Sobie said. SINGAPORE, June 4 (Reuters) – The Association of Southeast Asian Nations (ASEAN) and the European Union have signed the world`s first air transport agreement, ASEAN said, to make it easier for their airlines to expand their services to and within their respective regions. On paper, it looks impressive. When the agreement is finally signed, which is expected by the end of 2021, airlines from a total of 37 states will be able to fly any number of non-stop flights between the countries of the two blocs. EU and ASEAN airlines will also be allowed to make more stops in the other block for passenger and cargo services.
The EU-ASEAN agreement could increase the number of flights between already active hubs such as Singapore and Bangkok in Southeast Asia and Paris and Rome in Europe. However, the demand for flights to Southeast Asia from Lisbon, Oslo or Dublin airports as well as other European cities is still limited. EU Transport Commissioner Adina Valean said the deal was “an important step in the EU`s aviation foreign policy” as it was the world`s first air transport agreement between two blocs. She added: “It is important that this new agreement also provides us with a solid platform to continue to promote high standards in safety, security, air traffic management, environmental and social affairs. I am grateful for the constructive approach of all stakeholders that made this historic agreement possible. In addition, airlines can perform up to 14 weekly passenger services with a stopover in the other region to pick up passengers on the return route. There is no limit to cargo flights. ASEAN and the EU hope the deal will make their respective airlines more competitive, as their international flight routes are currently dominated by Middle Eastern airlines. The CATA EA, once formalised, will strengthen connectivity between the EU and ASEAN, which has been decimated by the pandemic. The agreement allows asEAN and EU airlines to provide an unlimited number of non-stop passenger and cargo services between the two regions.
Sun Chanthol, chairman of the ASEAN Transport Ministers` Meeting, said in a statement on the air transport agreement that it would “lead to significantly better connectivity between ASEAN and the EU, benefiting a population of 1.1 billion people and enabling more business, trade, tourism and people-to-people connections between the two regions.” The deal, once formalized, will mean that airlines from the 37 member states combined will be able to operate an unlimited number of non-stop flights between countries in the two regions, ASEAN said Friday. www.ainonline.com/aviation-news/air-transport/2021-06-04/eu-asean-agree-worlds-first-bloc-bloc-air-transport-pact In addition to the liberalisation of air transport, the EA CATA can strengthen mutual trade and investment prospects between ASEAN and the EU. On 2 June 2021, the Association of Southeast Asian Nations (ASEAN) and the European Union (EU) agreed on the world`s first block-to-block air transport agreement with the ASEAN-EU Comprehensive Air Transport Agreement (ASEAN-CATA). AE CATA`s objective is to agree on the reconstruction of air links between ASEAN and EU countries, which have been hit hard by the pandemic crisis. At the same time, it will help create growth opportunities for the aviation industry in Europe and Asia and promote coordination to avoid disruptions to air services related to the pandemic. The conclusion of the terms of the contract comes in one of the worst years for the aviation industry in recent history – more difficult than most sectors affected by COVID and the subsequent collapse of international travel. “This deal certainly doesn`t hurt, but I think the consensus is that there won`t be an immediate impact as the focus is now on restoring existing services,” Brendan Sobie, an independent analyst and founder of Singapore-based Sobie Aviation, told DW. The agreement “offers essential guarantees of fair competition for our European airlines and industry, while strengthening mutual trade and investment prospects,” Adina Valean, the EU`s transport commissioner, said, according to the ASEAN statement.
The agreement reflects the latest political considerations in aviation regulation, including strong provisions on fair competition and business activities, according to Friday`s statement. Most importantly, the CATA EA provides a basis for closer cooperation between ASEAN and the EU in areas such as aviation safety, air traffic management, consumer protection and environmental and social issues. This enhanced cooperation builds on existing initiatives such as the Enhanced ASEAN Regional Integration Support from the EU (ARISE Plus) programme for technical assistance and capacity building; EU-South-East Asia cooperation on civil aviation cooperation on climate change mitigation: Carbon Offsetting and Reduction Programme for International Aviation (EU-SEA CCCA CORSIA), which supports the implementation of CORSIA; and the EU-Southeast Asia Air Partnership Project (EU-SEA APP). ASEAN is the EU`s third largest trading partner (after China and the US) with bilateral trade in goods of more than €189 billion ($223 billion) in 2020 and bilateral trade in services of €93 billion ($110 billion) in 2019. In 2019, the aviation industry accounted for around 2.1% of EU GDP, according to official figures. AE CATA of Dato Lim Jock Hoi, SECRETARY General of ASEAN, said: “With an inflow of foreign direct investment of $10.5 billion and trade in goods of $226.2 billion in 2020, the EU is already ASEAN`s third largest source of investment and third largest trading partner. The CATA EA would significantly strengthen the air transport link between ASEAN and Europe and bring the two regions even closer together. This would allow them to reap other economic benefits. “The general idea here is to make ASEAN and EU airlines more competitive compared to airlines from other regions that have actively gained market share in the ASEAN-EU market,” he said. .