Nations in Asia-Pacific ponder the benefits of a single market.

Aeropolitics in the Asia-Pacific region are at something of a crossroads. The US has always been a single market, and the European Union created a single market in 1993. But the Pacific Rim nations remain aeropolitically fragmented, and this could cause problems for them.

Policies in the Pacific range from the free market to protectionist. This ideological mismatch, combined with the differing aeronautical ambitions, is creating bilateral tensions within the region.

Whether Asia will ever create a consensus on aviation remains to be seen. Any agreement would be hampered by more than the different ideologies: there is also a diverse range of cultures and political and economic values. Furthermore, there is no central institution equivalent to the European Commission to push things forward.

The best focus for unity so far has been antipathy towards the US, which is at loggerheads over bilaterals with many Asian countries (see news story). Last year, the Orient Airlines Association signalled its members' collective distaste for US attitudes in the region. But an outcry by a trade association is very different from proper collective action at government level.

It is time for Asia-Pacific governments to agree a common aeropolitical framework, beginning with a common internal market and then taking a joint approach to solving what Japan Airlines' Koki Nagata calls 'The American problem.' The most likely vehicle for such action is the Association of South East Asian Nations. Failure to take action could result in Asia-Pacific being left behind in the race to create free markets in aviation.

 

Source: Airline Business