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
3 2016 1978 1990 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 1 6 1 ASEAN LCC LCC ASEAN LCC EU ASEAN LCC 1 LCC 1 2 118
1 2 * * 86,370 1 * 56,312 2 105,190 2 129,087 1 129,433 * 129,087 3 48,244 3 91,729 3 100,683 4 47,278 4 5 35,364 5 64,731 5 6 1 2014 31,682 6 57,986 6 67,761 4 90,439 * 87,830 86,370 7 31,016 7 US 48,043 7 66,174 8 KLM 27,740 8 46,466 8 * 62,309 9 25,708 9 39,277 9 59,850 10 24,243 10 * 36,311 10 54,577 * LCC World Air Transport Statistics (IATA: International Air Transport Association 2014, P. 41 10 EU 3 ASEAN LCC 2 EU ASEAN 2 1. 1 119
3 2016 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
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2 1 Fly-Over 2 Technical Landing 3 4 5 3 3 6 3 3 7 3 3 8 9 7 EU EU EU EU EU 1997 EU EU EU EU EU 123
3 2016 1 EU 1978 1979 1 1984 2 1985 1986 Nouvelles Frontières 1987 12 1988 1 1990 6 1990 11 1992 6 1993 1 EU EU 2 LCC EU EU 2 EU 2 2 3 EU 1 EU LCC EU LCC EU EU LCC EU EU 2 EU 124
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3 2016 82,000 1,600 30 189 10 Ultra Low-Cost Carrier LCC Gatwick EU EU Charleroi 2001 11 2008 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
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 2 1992 ASEAN 2011 2015 Land Transport (Air Transport) (Maritime Transport) (Transport Facilitation) 2 ASEAN 1992 1993 1995 1997 1998 2002 2003 2008 2011 2015 ASEAN ASEAN ASEAN Free Trade Area: AFTA ASEAN ASEAN ASEAN Plan of Action in Transport and Communication ASEAN Vision 2020 ASEAN 1994 2004 ASEAN ASEAN ASEAN 5 127
3 2016 4 ASEAN EU 13 ASEAN EU 1 ASEAN ASEAN EU ASEAN ASEAN 2016 2 EU 1 9 1 2 EU 9 ASEAN ASAM 3 4 5 7 9 EU 1 3 ASEAN ASAM 2009 2010 2 Multilateral Agreement on Air Service: MAAS, Multilateral Agreement on the Full Liberalization of Passenger Air Services: MAFLPAS 2 ASEAN 3 4 5 14 128
ASEAN ASEAN MAAS 2014 2015 10 MAAS 2015 ASEAN 2 LCC ASEAN ASEAN 3 ASEAN 1 ASEAN ASEAN 2 EU ASEAN 3 4 5 3 LCC ASEAN LCC ASEAN EU LCC 2 LCC LCC LCC 4 15 129
3 2016 3 ASEAN LCC ASEAN LCC LCC ASEAN LCC 2001 Tan Sri Tony Fernandes LCC LCC 1 2001 DRB- 2 1 0.25 1,100 4,000 16 Now, Everyone can fly 2002 X EU ASEAN ASEAN EU ASEAN 130
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3 2016 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
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