PARLIAMENT The Asean open sky policy will benefit local airlines especially Malaysia Airlines (MAS) when it is fully implemented in 2015, said Deputy Transport Minister Abdul Aziz Kaprawi.

“The policy will enable local airlines to increase flight frequency, open new routes, and fix fares at current market rates without getting approval from aviation authorities,” he said at the Dewan Rakyat in Kuala Lumpur today.

In reply to a question from Anuar Abd Manap (BN-Sekijang), he said price competition however would result in seat over-capacity and reduce carriers’ profits, with the best-performing regional airlines monopolising the market.

To a supplementary question from Anuar, he said to remain competitive, MAS has ordered 47 new aircraft including Boeing 737-800s and will increase flight frequencies.

Abdul Aziz said all Asean countries except Indonesia and the Philippines have signed agreements relating to the policy, under which there is no restriction on international route rights, number of designated airlines, capacity, frequencies and types of aircraft.

- Bernama