The European Union (EU) and the Association of Southeast Asian Nations (Asean) are set to start negotiations for a landmark aviation agreement, which is expected to generate up to 7.9 billion euros in economic benefits over the next seven years.
The economic benefits include consumer surplus (in the form of lower airfares), social impacts (through increased employment) and tourism or time savings through more direct routes, the EU said.
The proposed EU-Asean agreement, which would be the first ever bloc-to-bloc aviation agreement, was seen to generate up to 5,700 new jobs between 2017 and 2023.
“International aviation agreements not only improve market access, but also provide new business opportunities for European companies and ensure fair and transparent market conditions based on a clear regulatory framework. This agreement will also provide more connections and better prices for passengers. Global connectivity is a driver of trade and tourism, and directly contributes to economic growth and job creation,” the EU said.
The EU added the aviation agreement, which also sought to highlight regional integration in the field of aviation, aimed to ensure high standards in safety, security, air traffic management and infrastructure as well as in consumer, social and environmental protection, among others.
Currently, the Asean, which includes the Philippines as its member, has a total population of more than 600 million and is now the third largest trading partner of the 28-member economic-political union in Europe. The Asean is regarded as a fast growing aviation market currently in the process of creating a single aviation market.
To date, there are over 11 million passengers using direct EU-Asean flights.
On Tuesday, the 28 EU transport ministers authorized the European Commission, the executive body of the EU, to start negotiations for aviation agreements with the Asean, Turkey, Qatar and the United Arab Emirates (UAE). This formed part of the new Aviation Strategy for Europe—a milestone initiative to boost Europe’s industrial base and reinforce its global leadership position amid recent economic turmoils.
“Global connectivity is a driver of trade and tourism, directly contributing to economic growth and job creation,” EU commissioner for transport Violeta Bulc said in a statement.
She said EU’s aviation strategy was firmly on track. “Once agreed, these agreements will offer new business opportunities to the whole aviation sector, new routes and better fares to passengers, while guaranteeing a level playing field to our companies.”