ASEAN Open Skies Policy : How Indonesian Airlines Compete

When the Association Southeast Asian Nation (ASEAN) finished their regional integration, it's going to be the second biggest market in Asia- Pacific. Populated more than 600 million people and owned more than USD 2 trillions GDP, the region have a bright future in terms of economic condition. In Bali Summit 2003, the ASEAN countries agree to establish ASEAN Community by 2020. One of the initiative was the ASEAN Economic Community (AEC). The AEC prepare a roadmap that Southeast Asian region should be a single market and production base, equitable economic development and integration into global economic. One of the strategy is deregulation of air transport within the region or open-sky arrangement which going to be fully applied in 2015. It means that every ASEAN Countries Member¿s airlines can operate in every Southeast Asian country domestic routes. As the biggest market in ASEAN, Indonesia is a very attractive market for ASEAN's airlines. A situation that very challenging for the native airlines. The stable growth of economic and tourism in eastern part of Indonesia, reflect the future of Indonesian domestic transport.