Regional Liberalization in International Air Transport: Towards Northeast Asian Open Skies

This author analyzes the regulations pertaining to the economic aspects of international air transport from the perspectives of law and policy. The subject of this analysis is Northeast Asia (defined in this study as China, Japan and Korea), and the focal point is a regional approach to liberalizing the international air transport market. International air transport is currently undergoing dynamic regulatory changes. Once, the airline industry was one of the most protected industries and was strongly marked by nationalistic sentiment. Today, however, it is largely in the process of liberalization, which can be measured by the relaxation of market access and ownership and control. While bilateral air services agreements are the principal instruments for liberalizing international air transport, regional approaches have also emerged in most parts of the world. Thus far, progress on regional liberalization has been slower in Northeast Asia than other regions, particularly Southeast Asia, where substantial progress has been achieved. Although the aero-political calculations that impede liberalization are commonplace all over the world, this impediment is more severely entrenched in Northeast Asia in addition to non-aviation-related barriers. However, there are ample arguments in favour of Northeast Asian open skies and tell-tale signs of positive changes. Furthermore, the airline industry itself is pushing for Northeast Asian open skies. In essence, this research investigates the legal and policy aspects of air transport liberalization in the Northeast Asian market and prescribes solutions for Northeast Asian open skies.