Brussels, 10 February 2014
EU–ASEAN1 Aviation Summit
– Towards stronger relations in aviation
Frequently asked questions
EU-ASEAN in figures
The EU traded with ASEAN more than €206 billion in goods and services in 2011
ASEAN is the EU’s 3rd largest trading partner outside Europe.
The EU is ASEAN's 2nd largest trading partner after China, accounting for around 11% of ASEAN trade.
The EU is by far the largest investor in ASEAN countries, with EU companies holding around one quarter of all foreign direct investment (FDI) stock in ASEAN. EU companies have invested around €9.1 billion annually on average (2000-2009).
With a combined population of 1.1 billion, the EU-ASEAN air transport market is of increasing strategic importance to both sides.
Air traffic between the EU and ASEAN has also been growing steadily and nearly doubled over the last 15 years to reach more than 10 million passengers in 2012.
Passenger air traffic between Europe and Southeast Asia is expected to grow by an average rate of 5% per year over the next 20 years.
See Annex for more EU-ASEAN air traffic figures
What is the state of play of EU-ASEAN relations?
The EU and ASEAN have a long history of strong commercial ties. Over the past 40 years, the EU and ASEAN have strengthened their dialogue which in 2007 was upgraded to an EU-ASEAN Enhanced Partnership.
The EU and ASEAN share a commitment to regional integration as a means of fostering regional stability, building prosperity, and addressing global challenges.
The two regions’ wider economies benefit immensely from aviation, which creates and facilitates growth, employment, tourism and connectivity with the rest of the world.
The EU has already signed so-called Horizontal air transport Agreements (bilateral agreement) with several ASEAN Member States: Singapore (2006), Malaysia (2007), Vietnam (2010), and Indonesia (2011), and with a prospect to sign also with the Philippines and Cambodia.
The EU is funding a technical cooperation and assistance project which is supporting the creation of the ASEAN Single Aviation Market. The "ASEAN Air Transport Integration Project" (AATIP) was launched in 2012 with a budget of 4.7 million € for the period 2012-2016. More information on the AATIP in the Annex further below.
What do we want to achieve?
In September 2012, the European Commission identified ASEAN as a region offering new interesting opportunities for cooperation, including a comprehensive aviation agreement at some stage. In December 2012, the Council of the EU welcomed the EC’s intention to organise jointly with ASEAN an EU-ASEAN Aviation Summit with the aim of enhancing EU-ASEAN aviation relations. In May 2013, the European Parliament, in its resolution on the EU’s external aviation policy, called on the Council of the EU to grant the European Commission a mandate to negotiate comprehensive air transport agreements with fast-growing economies including ASEAN.
The ASEAN Transport Ministers have expressed a clear interest in enhancing EU-ASEAN aviation cooperation leading to a, EU-ASEAN Comprehensive Air Transport Agreement.
A comprehensive EU-ASEAN aviation agreement would generate significant benefits for both sides not only in terms of market liberalisation, but also in ensuring regulatory convergence, fair competition, and more trade and investment.
Such agreement would require the support of EU Member States for the granting of a mandate to the Commission for negotiating a comprehensive air transport agreement with ASEAN.
Why would ASEAN and the EU be good partners in aviation?
Both EU and ASEAN have dynamic aviation markets which offer new opportunities for cooperation in this sector. There is much to gain, on both sides, by a close cooperation.
With a total population of 600 million, high economic growth – projected at 5% per annum over the next 10 years – and on-going market integration and liberalisation, ASEAN offers attractive opportunities to EU airlines, airports and manufacturing industry.
Airlines in ASEAN are expected to take delivery of almost 3,000 aircraft worth close to €500 billion by 2032. There is also a need for massive expansion of airport and air traffic management infrastructure as well as other aviation-related products and services such as aircraft maintenance, repair and overhaul.
ASEAN is in the process of further regional integration, aiming at the realisation of an ASEAN Community including an ASEAN Economic Community (AEC) by 2015. Aviation is a key pillar supporting the establishment of the AEC via facilitating the free, efficient, safe and secure movement of people and goods within and potentially beyond ASEAN.
While at different stages of maturity, the EU and ASEAN regional integration process have many similarities including in the aviation sector where both are creating single aviation markets within their region.
ASEAN is on course to create by 2015 an ASEAN Single Aviation Market (ASAM), which will have many similarities to the open regional aviation market in Europe. This offers new opportunities for cooperation between the EU and ASEAN in aviation.
The development of a single aviation area in ASEAN countries is based on common rules and market opening. This is just what the EU did in the past two decades, creating what is today the largest and most successful example of regional aviation market in the world, creating significant benefits for EU consumers, the EU aviation industry and the overall EU economy.
The EU has signed comprehensive air transport agreements with: USA, Canada, Western Balkans, Morocco, Jordan, Georgia, Moldova, and Israel. An agreement will soon be signed with Ukraine. Negotiations are expected soon to be finalised with Brazil. Negotiations are ongoing with Tunisia, Azerbaijan and Lebanon and may also start with Armenia. The Commission also has mandates to negotiate with Australia, New Zealand and Algeria.
EU-ASEAN Aviation Markets Statistics2
Annual average traffic growth between the EU and ASEAN (direct traffic only) by passengers and freight
Total origin-destination traffic between the EU and ASEAN (regardless of whether direct or via an intermediate point) and transfer traffic continuing beyond the EU and/or ASEAN (e.g. traffic from Europe to Australia via ASEAN) has been growing steadily. Between 2007 and 2012, such traffic registered a strong CAGR of 4%. This highlights the increasing strategic and economic importance to both sides of the EU-ASEAN air transport market, which serves a combined population of over 1.1 billion.
Direct EU-ASEAN air traffic has also grown, but not as rapidly, with a compound annual growth rate (CAGR) of 1.1% between 2007 and 2012, slower than growth of total extra-EU air traffic. One of the reasons for the relatively low growth in EU-ASEAN direct air traffic, despite growth in overall traffic, is that traffic between the EU and regions such as ASEAN is increasingly routed via hubs in the Gulf (Dubai, Doha and Abu Dhabi), rather than hubs in, for example, Europe itself. Between 2009 and 2013, air passenger traffic3 between EU and Gulf-states grew by an annual rate of 15.4% while air passenger traffic between the Gulf and ASEAN grew annually 11.8%.
In 2012, direct EU-ASEAN passenger traffic represented 3.3% of the total extra-EU passenger traffic while the EU-ASEAN freight traffic represented 5.6% of the total extra-EU freight traffic. In 2013, ASEAN-EU traffic represented 7.8% of the total extra-ASEAN seats available.
Top-20 EU airports by passengers flying to ASEAN in 20124
% of total top-20 passenger traffic
Top-15 ASEAN airports by passengers flying to the EU in 20125
BANGKOK Don Mueang
HO CHI MINH CITY
PULAU Langkawi International
Top-20 EU-ASEAN city pairs6
These city pairs represent over 75% of passenger traffic between EU and ASEAN
LONDON – SINGAPORE
FRANKFURT – SINGAPORE
LONDON – BANGKOK
FRANKFURT – BANGKOK
LONDON - KUALA LUMPUR
PARIS – SINGAPORE
AMSTERDAM - BANGKOK
PARIS – BANGKOK
AMSTERDAM - KUALA LUMPUR
COPENHAGEN – BANGKOK
AMSTERDAM – SINGAPORE
HELSINKI – BANGKOK
STOCKHOLM – BANGKOK
VIENNA – BANGKOK
MUNCHEN – BANGKOK
PARIS - KUALA LUMPUR
PARIS - HO CHI MINH CITY
PARIS – HANOI
AMSTERDAM – MANILA
HELSINKI – SINGAPORE
Top-20 EU and ASEAN air carriers by seats supply in 20137
Top-3 carriers had over 50% share of the yearly seats supply between EU and ASEAN
% of total seats
NORWEGIAN AIR SHUTTLE
BLUE PANORAMA AIRLINES
In 2013, every EU citizen had on average approximately 2.3 seats available on intra-EU and extra-EU flights.
In ASEAN the corresponding ratio was 0.7.
Economic benefits of the of EU-ASEAN air transport liberalisation8
Summary of quantified economic benefits for first year of liberalisation of the EU-ASEAN air transport market
Traffic stimulated (passengers)
Consumer surplus (€ million)
460 to 930
Employment: jobs created (excluding tourism)
ASEAN Air Transport Integration Project (AATIP)
ASEAN has set the target of realising an ASEAN Single Aviation Market (ASAM) by 2015. This will require not only air services liberalisation, but also coming to an agreement on fundamental issues of a single aviation market, such as industry structure, liberalisation of ancillary air services, air traffic management and control, and air safety and security.
A number of pillars are needed to support regional integration such as regulatory convergence (common safety standards and rules), enhancing the institutional capacities of individual states and regional institution building (setting up regional mechanisms).
The overall objective of AATIP is to contribute towards sustainable ASEAN economic growth and the integration of the ASEAN Economic Community (AEC), through the development of the civil air transport sector. In order to support this objective, AATIP will facilitate the development of frameworks to strengthen institutional capacities within ASEAN with a view to supporting the achievement of a safe, secure and sustainable ASEAN Single Aviation Market based on high regulatory standards.
EASA, the European Aviation Safety Agency, has been appointed as the implementing body of AATIP and has formed a consortium with EUROCONTROL, the UK Civil Aviation Authority and the French DGAC (Civil Aviation Authority).
AATIP in brief:
Project duration: 2012 – 2016
Budget: 4.7 million €
Areas covered: Aviation Safety, ATM (Air Traffic Management) and Economic Market Regulation.
The two main expected results are:
• Preparation for the ASEAN Single Aviation Market (ASAM) and its external linkages supported through the development of harmonised frameworks in aviation safety, security, air traffic management, environmental protection, market liberalisation, application of competition laws and economic regulations.
• Progress towards ASEAN institutional development, i.e. institutional reforms and ASEAN Air Transport Institutions’ building, and capacity of the ASEAN Secretariat and ASEAN Member States' authorities, operators and industry strengthened.