Budget airlines expected to gain from Asean's open skies

Singapore

LOW-COST airline groups and manufacturers of smaller passenger aircraft will be among the main winners after South-east Asia's open skies agreement finally came into effect last month, although airport capacity constraints could limit the benefits.

Ratification of the Association of Southeast Asian Nations' open skies agreements by Indonesia and Laos in April lifts restrictions on capacity and competition, allowing airlines to launch unlimited flights from their home to any point in the region subject to airport slot availability.