ROUTES ASIA Manila


The argument for regional economic integration has already been won


ASEAN benefits will ‘far outweigh costs’


The impact of the Association of the Southeast Asian Nations (ASEAN) open skies; the general potential hailing from the rising middle class in Indonesia, Philippines and Thailand; and a thriving economy with an overall community of more than 630 million people were all topics of debate at Routes Asia 2016. However, for Tony Fernandes,


founder and head of the AirAsia Group, the argument for regional economic integration has already been won, if for no other reason than the numbers. “The benefits of regional economic


integration will far exceed its cost,” he said. “For the aviation industry, the multiplier effect is 13-fold.” This means that for every $1 an airline spends it leads to a $13 increase in GDP. “This will also fuel the growth of job


opportunities, as the aviation industry heavily depends on a highly skilled workforce for it to grow.” Boeing estimates that ASEAN will need 56,500 more pilots and 59,500 more aircraft technicians in the next two decades. However, there are many things that still need to take place in order for ASEAN to reap these benefits, Fernandes argues. A good example is the ASEAN common visa system, which would allow a person to travel around ASEAN countries with just one visa. “There are some valid concerns


around security for some countries,” said Fernandes. “These countries should be able to opt-out, while still allowing others to benefit quickly


16 ISSUE 3 ROUTES NEWS 2016 routesonline.com


constraints, an overstretched staff and a lack of institutional capacity. “It is imperative that we


Tony Fernandes (right) says integration will fuel new jos


from its implementation.” The tourism industry across the Asia-


Pacific region is booming. Nearly half of the 105 million international arrivals in the region came from within ASEAN itself. In the next 10 years, ASEAN will contribute 5% of regional GDP, creating more than 15 million jobs. To support the growth, the ASEAN minus policy should be enforced, allowing member-states to opt out of a regional programme to encourage faster adoption of policies, according to Fernandes. The ASEAN Secretariat, headquartered in Jakarta, is mandated to coordinate and facilitate the implementation of ASEAN’s projects and activities. It plays a key role in the integration of the region. But the ASEAN Secretariat is “severely limited” in its ability to carry out its role, said Fernandes, due to budgetary


strengthen the ASEAN Secretariat by substantially increasing its funding so that it is able to carry out its projects. We need to work out a system where ASEAN countries with bigger GDPs or GDP per capita can contribute more without affecting the equal voting weightage,” he said. The creation of ASEAN institutions is a much-needed factor in streamlining the region’s fragmented regulatory landscape as well as addressing concerns on talent shortage, said Fernandes. The creation of an ASEAN Joint Aviation Institution is


key, he added. The institution will act as an


agent to facilitate ASEAN states to adopt Mutual Recognition Agreements (MRAs) and free movement of aviation personnel. Adoption of MRAs on pilot and aircraft technician licenses and certifications, harmonisation of qualification standards, alignment of training, joint accreditation of training centres and better-quality technical courses at local colleges will help expedite the creation of common aviation safety standards.


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