Cargo flights to benefit from ASEAN Open Skies

WEDNESDAY, January 13, 2016

The country’s air cargo industry is expected to benefit from the multilateral agreement on the opening of freight services between ASEAN countries, a move that promises to help increase air cargo volume by 50 percent this year.

Indonesia National Air Carriers Association (INACA) head of cargo division Boyke P. Soebroto said that the multilateral agreement would broaden the market for Indonesian air cargo service providers.

Prior to ASEAN Open Skies, also known as the ASEAN Single Aviation Market (ASEAN-SAM), Indonesian cargo planes were required to stop over in countries like Singapore, as a hub, en route to a final destination,

“For example, there wasn’t a direct [air cargo] flight from Jakarta to Hanoi but, with the liberalization, we can fly directly from Surabaya to Hanoi,” Boyke said.

“This is a chance for Indonesian air cargo service providers to get into ASEAN industrial centers, both for imports and exports.”

Citing data, he said the country’s international air cargo shipping volume stood at around 80,000 tons in 2014, just one-fifth of domestic air cargo shipping which booked 400,000 tons during the same year.

Air cargo volume decreased by 5 percent in 2015 due to the slowing economy, according to INACA data.

“But for this year, as we will have direct flights, I think it [volume] will increase by 40,000 tons,” he said.

Service providers in the country, according to Boyke, would likely aim to increase air cargo shipping to Hanoi and Saigon, among others.

Indonesia ratified the multilateral agreement on the full liberation of air freight services in July last year.

The agreement, first approved by ASEAN in 2009, was implemented with the ASEAN Economic Community (AEC) this year.

In the agreement, Indonesia is to open seven cities to incoming and outgoing freight services, including Palembang, South Sumatra; Manado, North Sulawesi; Makassar, South Sulawesi and Biak, Papua.

Meanwhile, the Philippines has promised to open six of its cities, including Cebu, while Thailand plans to open seven cities, including Bangkok and Phuket.

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