RI, EU ink agreement on 'open skies' aviation market

The Jakarta Post, Jakarta | Thu, 06/30/2011

Indonesia and the European Union (EU) signed a “horizontal agreement” on Wednesday on the aviation industry, aiming for a more liberalized or “open skies” aviation market  between the two parties.

“The Agreement between The Government of the Republic of Indonesia and The European Union on Certain Aspects of Air Services” was signed in Brussels on Wednesday evening by Indonesian Transportation Minister Freddy Numberi, Hungarian Ambassador to the EU Agnes Vargha and European Commission Vice President and commissioner responsible for transport Siim Kallas.

“The transportation minister said during the signing of the agreement that it was an important step to strengthen the relationship between Indonesia and the EU in the future, through the implementation of high standards of air transportation security and safety,” Indonesian Transportation Ministry spokesperson J. A. Barata said in a Thursday press release.

“The horizontal agreement between Indonesia and the EU will serve as a legal ground for bilateral agreements on certain aspects [of air services], such as aviation safety, taxation requirements and compliance with regulations on competitions,” he said.

Barata said the new agreement would complement existing bilateral agreements on aviation Indonesia had earlier signed with 18 member states of the EU: Austria, Belgium, Britain, Bulgaria, Czech, Denmark, Finland, France, Germany, Hungary, Italy, Luxembourg, the Netherlands, Poland, Romania, Spain, Sweden and Greece.

“The agreement is expected to encourage more intensified flows of goods and humans, increases in investments and the growth of tourism between the two parties, which in turn is expected to boost our national welfare and economic growth,” Barata said.