Rizkia Amelia Sania Putri
Total Page：16
File Type：pdf, Size：1020Kb
REGIONAL OPEN SKIES REGIME IN SOUTHEAST ASIA AND ITS RELEVANCE TO AIR TRANSPORT DEREGULATION IN INDONESIA Rizkia Amelia Sania Putri Institute of Air and Space Law McGill University, Montréal April 2017 A thesis submitted to McGill University in partial fulfilment of the requirements of the degree of MASTER OF LAWS (LL.M.) ©Putri Rizkia Amelia Sania 2017 TABLE OF CONTENT TITLE ....................................................................................................................................... i TABLE OF CONTENT .......................................................................................................... ii ABSTRACT ..............................................................................................................................v RÉSUMÉ ............................................................................................................................................. vi ACKNOWLEDGMENTS .................................................................................................... vii INTRODUCTION ...................................................................................................................1 A. Context of Study ..................................................................................................................1 B. Problem Statement and Thesis Outline .............................................................................6 CHAPTER I REGIONAL OPEN SKIES AGREEMENT AND SINGLE AVIATION MARKET: LITERATURE REVIEW ......................................................................................................8 A. Regionalization, Regional Integration, and Regional Cooperation ............................... 9 B. Regional Cooperation In Air Transport Industry ........................................................10 C. Regional Open Skies Agreements ................................................................................... 12 C.1. Open Skies Agreements ..................................................................................................13 C.2. Regional Open Skies Arrangements ................................................................................15 C.2.1. Andean Pact...................................................................................................................17 C.2.2. Fortaleza Agreement .....................................................................................................18 C.2.3. Yamoussoukro Decision ...............................................................................................19 C.2.4. Damascus Agreement ....................................................................................................21 C.2.5. European Union.............................................................................................................22 D. Conclusion..........................................................................................................................26 ii CHAPTER II OPEN SKIES REGIME IN SOUTHEAST ASIA.............................................................. 29 A. The Overview of the Air Transport Industry in ASEAN ............................................. 30 B. ASEAN as A Regional Economic Block in the Global South: The Birth of ASEAN and How It Works ........................................................................................................................ 34 C. Liberalization of Air Transport in Southeast Asia ....................................................... 37 C.1. Unilateral liberalization ................................................................................................... 38 C.2. Sub-Regional ................................................................................................................... 39 C.2.1. BIMP-EAGA .................................................................................................................39 C.2.2. CLMV ...........................................................................................................................40 C.2.3. IMT-GT .........................................................................................................................41 C.3. Regional ..........................................................................................................................41 D. ASEAN Open Skies Agreements ....................................................................................43 D.1. Negotiation Process......................................................................................................... 43 D.2. The Regulatory Framework ........................................................................................... 46 D.2.1. Market access .............................................................................................................. 46 D.2.2. Ownership and control rules ........................................................................................ 48 E. Implementing the ASEAN Open Skies Agreements: The Prospect and Corresponding Challenges ............................................................................................................................. 50 E.1. Enforcement Procedure ................................................................................................... 50 E.2. Proliferation of Cross-Border Joint Ventures ...................................................................52 E.3. ASEAN Community Carrier ........................................................................................... 55 F. Analysis and Synthesis ..................................................................................................... 56 F.1. Harmonization ..................................................................................................................56 F.2. Competition .....................................................................................................................57 F.3. Liberalization ...................................................................................................................57 F.4. External Relations Policy ................................................................................................59 iii CHAPTER III THE RELEVANCE OF ASEAN OPEN SKIES REGIME TO INDONESIA ................60 A. Overview of Air Transport Industry in Indonesia ....................................................... 60 A.1. Market Outlook ...............................................................................................................60 A.2. Air Transport Infrastructure ............................................................................................ 63 A.3. General Regulatory Framework ..................................................................................................... 65 B. The Development of Indonesian Air Transport Policy ............................................................. 66 B.1. Pre Deregulation Era ........................................................................................................................ 66 B.2. Deregulation Era ............................................................................................................................... 70 C. Indonesia and the Open Skies Agreements in ASEAN ................................................. 74 C.1. Indonesian Commitments in ASEAN Open Skies Agreements ...................................... 74 C.1.1. Soft rights ......................................................................................................................74 C.1.2. Hard rights .....................................................................................................................75 C.2. Indonesian Regulatory Approach to Liberalization in Air Transport ............................ 76 C.3. Indonesian Stance toward ASEAN Open Skies .............................................................. 79 D. Analysis and Synthesis ..................................................................................................... 81 CHAPTER IV CONCLUSION ..................................................................................................................... 84 A. ASEAN Open Skies Agreements in Its Own Way: What does It Envision? ..............84 B. Indonesian Air Transport Policy Toward ASEAN Single Aviation Market: Where does It Stand? ................................................................................................................................88 C. Recommendations ........................................................................................................... 89 BIBLIOGRPAHY ................................................................................................................91 iv ABSTRACT Southeast Asia, a subset of the Asia-Pacific region, is the home of a rapidly growing aviation market. For the ten Member States of the Association of South-East Asian Nations (ASEAN), stronger cross-border integration in the aviation sector is important to support the ASEAN Economic Community (AEC) agenda and to respond to the impacts of global liberalization in air transport. In this regard, a set of open skies agreements and implementing protocols have been concluded and ratified by the ASEAN Members. Although ASEAN has achieved substantial progress in the regional liberalization of air transport, the realization of single aviation market seems to be far-fetched. Some stumbling blocks to achieve a greater liberalization are the limiting