AIRLINES IN ASEAN : A CASE STUDY ON REGIONAL AIR TRANSPORTATION

Abstract

ASEAN was formed in 1967 to promote economic and social development through cooperative effort. Cooperation in air transport will enhance the development of a sound and efficient air transport network which will in turn sustain the continued economic growth of the region. The primary aim of this exercise is to study the degree of regional cooperation in air transportation and also to analyse the economic contribution of air transportation to the region. This study therefore provides some insight into the operation of airlines, competition between airlines and the policy issues of air transportation through a spatia-temporal viewpoint. Generally, this study will be viewed from both the economic and political viewpoints. Economically, air transportation contributes to two fields - the promotion of tourism and the possibility of having an aerospace industry. There is a close relationship between tourism and air transportation. The demand for air transport is a function of the growth of tourism. Improved air transport networks have stimulated tourism and this expansion of tourism further stimulates more air transport networks. Therefore, the contribution of tourism to the economy of ASEAN can be increased if there is cooperation among the five national carriers to promote regional tourism. There must also be genuine cooperation between the airlines and the various tourist organisations. The tremendous increase in traffic growth in the region has to a great extent outstripped ground facilities. As such, a study into the problems of aviation infrastructure (airports} will also be attempted. In the study of air transport, politics apparently cannot be kept out. The formation of an appropriate international aviation policy is at times very much dictated by political interest rather than economically motivated. The degree of compatibility between a country's aviation policy and that of its neighbour is of vital importance. Therefore, to prevent conflict and to encourage cooperation, the formulation of a country's aviation policy must be closely responsive to the legitimate air transport objectives of other nations. These aviation policies will never be viable in the community of nations unless they meet with general acceptance. In this study, the degree of regional cooperation will be indicated by the analysis of three major events, the split of MSA, the ICAP issue and the ·recent air agreement between Singapore and Malaysia. Air Transportation lends itself to a regional perspective in the sense that enhanced regionalism implies improved air transportation, while improved transportation facilitated regionalism. Regional cooperation in air transportation can be carried out in many ways such as the establishment of joint programmes and training facilities, sharing of maintenance and operational services and pooling arrangements. A study on the degree to which such cooperation has been achieved will be attempted. There will also be the analysis on the possibility of having an ASEAN Airline jointly owned by all the ASEAN countries.