IS MALAYSIA READY FOR THE AEC? IMPACT OF THE AEC ON SMES
by Tan Sri Dr Mohd Munir Majid, Chairman of the ASEAN Business Advisory Council, and also IDEAS Council Member.
It is a technical paper, lots of important data and reflections by an industry player. I am copy-pasting his presentation below.
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LOW COST CARRIERS
(LCCS) BOOM IN ASEAN CREATES INFRASTRUCTURE CONGESTION AND PUTS PRESSURE ON
HUMAN CAPITAL
1. The aviation landscape in ASEAN is changing rapidly,
especially with the advent of the low-cost carriers (LCCs).
• which now account for more than half of all
airline capacity in Indonesia, the Philippines, Malaysia.
• Total weekly capacity of all carriers in ASEAN is 9.78
million seats.
• average LCC penetration rate is 29% and LCCs’ share of
capacity is expected to increase more dramatically in the next decade.
• In 2009, LCC passenger traffic and aircraft movements
at Singapore Changi airport increased 50% over previous year.
• Six intra-ASEAN routes are now among the top ten
busiest international LCC routes in the world.
2. Infrastructure build up to meet the growing LCC
traffic is lacking in ASEAN and airports and terminals dedicated to LCC operations remain the exception.
• Many of the main airports in ASEAN capitals have reached
saturation point or even exceed their intended capacity, resulting in congestion and delays.
• The LCC boom exacerbates the congestion problem,
especially since LCCs typically use smaller planes with higher frequency of
take-off and landings.
• Due to the lacking infrastructure and high congestion
there is a problem with the availability of suitable landing and take-off
slots, which has forced some airlines to take-off and arrive at unfavourable
hours.
3. Human capital – The growth in the aviation sector also
puts pressure on the provision on human capital: the Asia-Pacific is estimated
to require 185,000 more pilots and 243,500 more maintenance personnel for the
next 20 years.
RESEARCH SHOWS LIBERALISATION I N ASEAN AVIATION INDUSTRY
WOULD YIELD SIGNIFICANT BENEFITS
Most studies are unanimous that the overall benefits of liberalizing the aviation industry include:
BARRIER 1: ASEAN SHOULD ADOPT A REGIONAL
TELECOMMUNICATIONS FRAMEWORK TO LOWER INTRA-ASEAN ROAMING AND IDD CHARGES BY BALANCING
THE INTERESTS OF CONSUMERS AND TELCOS
RECOMMENDATIONS:
