Overall Impacts on ASEAN
Lower fares and better services will mean that as a group, passengers from ASEAN will gain.
The impact on airlines depends on how much they are able to improve productivity to match
the more competitive fare environment. Some airlines will gain from enhanced market
access. To the extent that costs fall, the gains to passengers will outweigh the reductions in
profits to airlines.
Lower airfares within the region will mean that the ASEAN region will become more
competitive, as a tourist destination. Intra ASEAN tourism will now become more attractive
relative to beyond ASEAN tourism for residents. Both these effects will increase tourism in
the region, and thus increase tourism expenditures and economic benefits.