Southeast Asia's open skies agreement to drive cheaper fares and more budget airline services

Travellers looking to fly in southeast Asia can look forward to more competitive fare prices following an agreement which will allow airlines to launch unlimited flights in the region. Low-cost airline groups and manufacturers of smaller passenger aircraft will be among the main winners in Southeast Asia's open skies agreement when it finally came into effect last month. Ratification of the ASEAN open skies agreements by Indonesia and Laos in April lifts restrictions on capacity and competition, allowing airlines to launch unlimited flights from their home to any point in the region subject to airport slot availability. Hubs like Singapore, which have a clear expansion plan, could gain from an increase in air services, as will budget carriers which are ideal for a region where no two points are more than a few hours apart, say analysts. <br/>