First Impacts of ASEAN Liberalization on Regional Air Transport Markets : The case of Cambodia

International audienceThe ASEAN air transport liberalization was initiated in 2004. The objective for 2015 is to establish a relaxation of 3rd, 4th and 5th freedom rights between member states. 7th freedom and cabotage rights, which are necessary to a successfully completed single market, are not yet included but could be by 2023. Two multilateral air services agreements have been set up (MAAS and MAFLPAS), and will lead to this liberalization objective in January 2015. Nevertheless, ASEAN countries can already decide to implement these multilateral agreements without waiting for the deadline. This strategy is the one chosen by Cambodia, which has applied MAAS and/or MAFLPAS agreements with Malaysia and Thailand in 2013. In parallel, the bilateral air services agreements with other ASEAN countries, and a few Asian countries, have also been updated in 2013, with removal of constraints on frequencies and capacities. These new air services agreements have already resulted in changes in airline behaviour. This paper analyses changes in the Cambodian market in terms of traffic patterns, airline behaviour, and competition. It provides some hints as to the potential impacts of the ASEAN air transport liberalization on the Cambodian air transport market; highlights the potential benefits and risks, and enlarges the discussion to the other local markets