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Trade
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2000-10-05 06:26:00-04
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ASEAN urged to reduce Air Express Barriers
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Restrictive air agreements and customs stifle growth of air express sector, which generated US$ 50 billion last year, expected to double this year
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The US-ASEAN Business Council has called for a reduction in the barriers limiting the growth of the air express industry on the part of the 10-nation ASEAN group. Failure to do so could limit the growth of the 50 billion-dollar industry, which stands to grow another 50% this year. Among the hindrances to air express in the ASEAN region cited by the council: restrictive civil aviation agreements, difficult customs clearance procedures and restrictions in ground transportation operations. Transportation integrators, particularly those that operate their own aircraft, prefer to operate in countries that give them broad access to aviation markets. The council also called on ASEAN governments to allow fair competition among state-owned airlines, postal agencies and the integrators. The state-owned entities enjoy preferential treatment from governments, thus enjoying the opportunity to offer services at lower prices. 'Integrators view these forms of government support and preferential treatment for government-owned airlines as unfair and believe that public and private entities should receive non-discriminatory treatment in all areas in which they compete,' the report stated. The air express sector accounted for 6.5% of the gross domestic product of ASEAN and supported 350,000 jobs in the region.
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