Open Sky Agreement Singapore
In recent days, South Korea`s Ministry of Land, Infrastructure and Transport (MOLIT) announced that the country has signed open skies agreements that allow an unlimited number of scheduled flights to and from Singapore and Brunei. Singapore is a party to the Multilateral Agreement on the Liberalization of International Air Transport (MALIAT), a historic multilateral open-air agreement for the liberalization of international air transport. This historic agreement, signed on 1 May 2001, was the first multilateral AGREEMENTA between countries from different geographical regions. These agreements include more than 70 Open Skies Agreements (OSA). OSA allow air carriers to operate any number of flights between and beyond the two signatory states, allowing them to operate traffic from third countries to improve the commercial viability of scheduled flights. Attempts to open up the Singapore-Malaysia sector were very difficult until 2008. ASEAN is working with China to further liberalize the AC-ATA as well as other dialogue partners to conclude similar air transport agreements. Such liberal agreements promote air connectivity in the region and open up new opportunities for economic growth for Singapore and, ultimately, for ASEAN as a whole. On 9 June 2006, it became the first Asian country to conclude a “horizontal” air transport agreement with the European Union.   On 2 October 2007, Singapore became the second country to be granted cabotage rights within the UK under a fully liberal air transport agreement.  Singapore was also the first Asian country to conclude an Open Skies agreement with the United States in 1997, and has important liberal agreements with the United Arab Emirates. A ministry official is quoted in relation to the new agreement as follows (translation by KN Aviation): Due to an almost non-existent domestic market, Singapore must immediately attach importance to opening up the international market to its own airlines and allow foreign airlines to operate there. Singapore has air transport agreements with more than 90 countries and territories, and has the most liberal aviation policy in Southeast Asia It has been an active advocate of Open Skies and has concluded more than 30 Open Skies agreements, including 18 in the European Union, two in the Association of Southeast Asian Nations, five out of six members of the Gulf Cooperation Council, two members of the Union of South American Nations and four members of the Pacific Islands Forum.
The second Open Skies agreement – with Brunei – was announced by MOLIT one day after the one with Singapore on 24 November 2019. This made Indonesia the only ASEAN country that did not have an Open Skies agreement with South Korea. When negotiating bilateral air transport agreements (SAAs) with other countries, we take a mutually beneficial approach. Singapore has air transport agreements with more than 140 countries and territories. 3. No Party shall take unilateral measures to prevent the introduction or maintenance of a price to be charged or collected by (a) an air carrier of a Party for international air transport between the territories of the Contracting Parties or (b) an air carrier of a Party for international air transport between the territory of the other Party and another country; including, in both cases, line-spacing or inline transport. If a Party considers that such a price is inconsistent with the considerations referred to in paragraph 1, it shall request consultations and notify the other Party as soon as possible of the reasons for its dissatisfaction. Such consultations shall take place no later than 30 days after receipt of the request and the Parties shall cooperate to obtain the information necessary to resolve the problem in a justified manner. If the Parties reach an agreement on a price for which a notice of dissatisfaction has been issued, each Party shall do its best to implement this Agreement.
Without such mutual agreement, the Prize will come into force or remain in force. Singapore has been trying to conclude an Open Skies agreement with Australia since 1996, but has faced many obstacles.     There are similar obstacles to attempting to conclude SOAs with other countries such as Indonesia and the Philippines, mainly due to protectionist attitudes and fears that this is not a balanced agreement.  With regard to the agreement with Singapore, frequency restrictions on direct flights between the two countries will now be lifted. This will allow airlines to take flights from any South Korean city to Singapore. Previously, the two sides agreed in August 2018 to allow up to two daily connections between Busan and Singapore. Under the agreement, airlines from Singapore and the Maldives are allowed to operate an unlimited number of passenger and cargo services between the two countries and beyond on a third point. (a) Within 30 days of receipt of a request for arbitration, each Party shall appoint an arbitrator. Within 60 days of the appointment of such two arbitrators, they shall by mutual agreement appoint a third arbitrator to act as chairman of the arbitral tribunal; The ministry adds that Singapore has signed air transport agreements with more than 140 states and territories, more than half of which are Open Skies agreements. This means that South Korea now has such agreements with nine of the ten ASEAN (Association of Southeast Asian Nations) countries. Taken together, the three multilateral agreements mentioned above provide an open skies within ASEAN for ASEAN member states that have ratified the agreements. These agreements also represent the aviation sector`s contribution to the region`s vision of an ASEAN Economic Community by 2015.
Under the terms of the agreement, there will be no restrictions on capacity, frequency, aircraft type and route schedules. Cargo airlines can also park their aircraft in each other`s countries and use them as a hub for operations in any third country. With the latter agreement, the number of air transport agreements that Singapore has concluded with other countries amounts to more than 130, of which more than 60 are open skies agreements. MSA ceased operations in 1972 when political disagreements between Singapore and Malaysia led to the creation of two entities: Singapore Airlines and Malaysian Airlines System. Singapore Airlines retained MSA`s 10 Boeing 707s and 737s, retained Singapore`s international routes as well as the existing headquarters in the city, with J.Y. Pillay, former deputy head of MSA, as its first president. Flight attendants continued to wear the Sarong Kebaya uniform, which was first introduced in 1968. A local advertising startup, Batey Ads, secured the right to market the airline and eventually chose the stewardesses dressed as Sarong and Kebaya as icons for the airline, calling them Singapore Girls. Given that the open skies allow – at least in theory – more airlines to compete on flights, this is good news for passengers.
At the same time, I wonder how pleased the three major airlines of South Korea and Singapore are with this development. The first of two new agreements – the one with Singapore – was announced by MOLIT on 23 November 2019. In both cases, the new agreement is expected to allow for more spectrum between South Korea and the two countries, especially Singapore. It should also allow others, especially low-cost airlines, to enter the market. Last but not least, it should be possible to set up new routes. 1. Any dispute arising from this Agreement, with the exception of those which may arise from Article 12(3) (charging) and which are not resolved by an initial round of formal consultations, may be submitted to a person or body for decision by mutual agreement between the Parties. If the Parties do not agree, the dispute shall be at the request of one of the Contracting Parties; be subject to arbitration in accordance with the procedures described below.
The keen interest of low-cost airlines in serving the strictly protected Singapore-Kuala Lumpur market has been one of the main reasons for a partial release of the route despite the possible commercial implications, particularly for Malaysia Airlines. The two countries signed on 23 September. November 2007, an agreement allowing up to two flights per day for low-cost airlines from each country from 1 February 2008. The road will be fully liberalized on 1 December 2008, with the possibility of opening further routes between Singapore and secondary Malaysian cities at meetings scheduled for early 2008.  This makes Singapore the eighth ASEAN country to have signed such an agreement with South Korea: Thailand (2006), Malaysia (2007), Vietnam (2008), Myanmar (2010), Cambodia (2010), Laos (2011) and the Philippines (2017). Either Party may at any time inform the other Party in writing of its decision to terminate this Agreement. This communication is addressed simultaneously to the International Civil Aviation Organization. This Agreement shall terminate at midnight (at the place of receipt of the notification to the other Party) immediately before the first anniversary of the receipt of the notification by the other Party, unless the notification is withdrawn by mutual agreement of the Parties before the expiry of that period.
Coordinating Minister of Infrastructure and Minister of Transport Khaw Boon Wan signed the agreement in Singapore with Belize`s Minister of Tourism and Civil Aviation, Jose Manuel Heredia. Our open skies policy has helped Singapore become a major air hub in the Asia-Pacific region. This policy is based on our fundamental belief in free and open competition in Singapore`s aviation sector. We are working with other ASEAN member states to fully liberalize air services in the region. Within ASEAN, we are party to the following agreement: In the agreement with Brunei Darussalam, previous restrictions on the number of frequencies, aircraft types and cities that could be served were lifted, according to South Korea`s Ministry of Land, Infrastructure and Transport. .