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1 GCI LCC Air Transport Liberalization in the EU and the ASEAN: From the Viewpoint of LCC Development Factors KAWAGOE Maho This paper examines the processing stages of the air transport liberalization in the EU (European Union) and the ASEAN (Association of Southeast Asian Nations) from the viewpoint of the development factors of LCC (Low Cost Carrier). LCC has now developed in the liberalized aviation markets. In the EU, the single European aviation market has already been completed: the EU s licence for Community air carriers and a borderless aviation market has been realized. On the other hand, the liberalization in the ASEAN region is still in process and limited by its perspective: divided markets by borders and modestly deregulated flights, with little infrastructure. Regarding the progress of Ryanair (EU) and Air Asia (ASEAN) as LCC s examples, these cases illustrate the differences of each aviation market. Ryanair was given the air carrier s licence by the EU and can fly freely within the EU, while Air Asia Group is segmented by the ASEAN member-states and its activities are limited by borders. In conclusion, the author clarifies the differences between air transport liberalization in the two regions. EU ASEAN LCC 117
2 EU European Union: ASEAN Association of Southeast Asian Nations: 2015 ASEAN Asean Economic Community: AEC LCC Low Cost Carrier: LCC LCC LCC LCC LCC Ryan Air ASEAN LCC LCC ASEAN LCC EU ASEAN LCC 1 LCC
3 1 2 * * 86,370 1 * 56, , , ,433 * 129, , , , , , , , , , ,439 * 87,830 86, ,016 7 US 48, ,174 8 KLM 27, ,466 8 * 62, , , , , * 36, ,577 * LCC World Air Transport Statistics (IATA: International Air Transport Association 2014, P EU 3 ASEAN LCC 2 EU ASEAN
4 EU Kassim and Stevens 2010 EU EU ASEAN 2010 ASEAN LCC EU ASEAN EU ASEAN EU ASEAN 2 EU ASEAN LCC 3 3 LCC LCC 3 10 LCC LCC 120
5 LCC LCC 3 EU ASEAN LCC 3 EU ASEAN 2. 1 EU EU 121
6 EU EU I 5 3 EU IATA International Air Transport Association IATA 2 Double Approval EU LCC EU EU 2 EU EU EU 122
7 2 1 Fly-Over 2 Technical Landing EU EU EU EU EU 1997 EU EU EU EU EU 123
8 EU Nouvelles Frontières EU EU 2 LCC EU EU 2 EU EU 1 EU LCC EU LCC EU EU LCC EU EU 2 EU 124
9 LCC EU LCC LCC EU 3 EU LCC 2 LCC LCC LCC LCC 3 EU LCC EU LCC ELFAA (European Low Fares Airline Association LCC EU LCC LCC Ryanair 6 1 EU EU LCC
10 ,000 1, Ultra Low-Cost Carrier LCC Gatwick EU EU Charleroi EU 3 EU EU EU LCC 3. 1 ASEAN ASEAN 2015 ASEAN ASEAN Economic Community: AEC ASEAN Political-Security Community: APSC ASEAN Socio-Cultural Community: ASCC 3 12 ASEAN AEC 126
11 ASEAN AEC ASEAN EU ASEAN ASEAN ASEAN EU ASEAN Single Aviation Market: ASAM ASEAN 1992 ASEAN Singapore Declaration and Framework Agreement on Enhancing ASEAN Economic Cooperation ASEAN Land Transport (Air Transport) (Maritime Transport) (Transport Facilitation) 2 ASEAN ASEAN ASEAN ASEAN Free Trade Area: AFTA ASEAN ASEAN ASEAN Plan of Action in Transport and Communication ASEAN Vision 2020 ASEAN ASEAN ASEAN ASEAN 5 127
12 ASEAN EU 13 ASEAN EU 1 ASEAN ASEAN EU ASEAN ASEAN EU EU 9 ASEAN ASAM EU 1 3 ASEAN ASAM Multilateral Agreement on Air Service: MAAS, Multilateral Agreement on the Full Liberalization of Passenger Air Services: MAFLPAS 2 ASEAN
13 ASEAN ASEAN MAAS MAAS 2015 ASEAN 2 LCC ASEAN ASEAN 3 ASEAN 1 ASEAN ASEAN 2 EU ASEAN LCC ASEAN LCC ASEAN EU LCC 2 LCC LCC LCC
14 ASEAN LCC ASEAN LCC LCC ASEAN LCC 2001 Tan Sri Tony Fernandes LCC LCC DRB ,100 4, Now, Everyone can fly 2002 X EU ASEAN ASEAN EU ASEAN 130
15 ASEAN 5 EU 4. EU ASEAN LCC EU ASEAN 3 3 EU EU ASEAN EU EU ASEAN EU 1 9 ASEAN 1 5 EU LCC ASEAN LCC LCC EU ASEAN EU ASEAN ASEAN 131
16 LCC LCC EU LCC ASEAN LCC ASEAN EU ASEAN LCC EU LCC LCC EU ASEAN EU ASEAN ASEAN LCC ASEAN ASEAN ASEAN LCC ASEAN EU ASEAN LCC ASEAN LCC ASEAN EU ASEAN LCC 132
17 LCC 1 EU LCC lcc/ ICAO EU 1 I 3 III 6) III CEC, Report by the Commission to the Council and the European Parliament on the evaluation of aid schemes established in favour of Community air carriers, Doc. SEC Final, 19 March Ibid LCC 133
18 ASEAN ity 13 CAPA Centre for Asia Pacific Aviation ASEAN EU ASEAN Protocol 5 and LCC LCC EU LCC LCC EU LCC EU ASEAN EU LCC lcc/ 2012 ASEAN (Association of SouthEast Asian Countries) EU LCC Low Cost Carrier LCC 2010 LCCs LCC
19 2010 LCC LCC LCC LCC 3 Kansai Air Asia ASEAN: Association of Southeast Asian Nations asean.org/ Barrett, S.D. (2011). Ryanair and the Low-Cost Revolution in O Connell, J.F. and Williams, G., Air Transport in the 21st Century, Ashgate. Brunei Action Plan ASEAN Strategic Transport Plan , November CAPA Centre for Aviation ELFAA: European Low Fares Airline Association Graham, B Regional airline services in the liberalized European Union single aviation market, Journal of Air Transport Management, Vol. 3, No. 4, pp Hanaoka, S., Takebayashi, M., Ishikura, T., and Saraswati, B Low-cost carriers versus full service carriers in ASEAN: The impact of liberalization policy on competition, Journal of Air Transport Management, Vol. 40, pp Kassim, H., and Stevens, H Air Transport and the European Union: Europeanization and its Limits, Palgrave Macmillan Kim, M-h Integration Theory and ASEAN Integration, Pacific Focus, Vol. 29, No. 3, pp Klophaus, R., Conrady, R., and Fichert, F Low cost carriers going hybrid: Evidence from Europe, Journal of Air Transport Management, Vol. 23, pp Ryanair 135
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