Legal implications and the possible effects of the ASEAN open skies policy on the market share of the local passenger carriers in the ASEAN aviation industry

• Main Author: Suarez, Roberto Paolo R.
• Format: text
• Language: English
• Published: Animo Repository 2012
• Subjects: Aeronautics—Law and legislation—Southeast Asia; Aeronautics—Law and legislation—Philippines; Airlines—Philippines; International Law; Transportation Law
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/6676; https://animorepository.dlsu.edu.ph/context/etd_masteral/article/12822/viewcontent/CDTG005138_P.pdf
• Institution: De La Salle University

The Association of South East Asian Nations (ASEAN) Open Skies Policy aims to liberalize the aviation industry in the region. Through this Policy, the member nations seek to bring down trade transaction costs within the region; it is a significant step to their ultimate goal of economic integration. This study aimed at studying the current legal environment of the Philippines, with respect to its aerial policy, and the effect of ASEAN Open Skies on the ASEAN market share of the Philippine carriers. The incumbent President had signed two Executive Orders which, in general terms, granted unilateral traffic rights to foreign carriers. It is of significant importance that the purposes of such orders were to develop tourism and induce foreign investment. The study shows that there is no real need for such a Policy to be implemented because it does not address the tourism and investment problem. Nonetheless, it is a step towards Open Skies. Furthermore, its implementation will significantly affect the market share of Philippine carriers within the region; there is a possibility that small Philippine low cost carriers will not survive in the intra-ASEAN market.