On 1 November 2007, Singapore Prime Minister, Lee Hsien Loong, declared at the 13th ASEAN Transport Ministers Meeting that the emphasis ought to be put on enhancing transport links between ASEAN and the rest of East Asia, and in particular on working out possible Open Skies Arrangements with China and India. The will to engage India in forging a cooperative partnership in the transport sector was also stressed at the previous ASEAN Transport Ministers Meeting in Bangkok. ASEAN realizes that these efforts are a "critical enabler and a key beneficiary of the ASEAN Economic Community (AEC)."

India-ASEAN cooperation in the aviation sector needs to be evaluated in this mutually beneficial framework, given its strategic significance in facilitating integration between India and ASEAN. The intensification of economic interaction between India and Southeast Asia has led to enhanced mobility of people between these two regions. Consequently, the demand for air flights between India and Southeast Asia has increased exponentially.

Realizing the need for greater connectivity as the fulcrum of regional economic integration, certain steps towards liberalization of air services were taken in 2003, leading to a significant increase in flight connections. At the third meeting of the ASEAN-India Working Group on Transport and Infrastructure held on 16 May 2006 in Chiang Mai, Thailand, it was agreed to strengthen the ASEAN-India air connectivity by working progressively towards greater liberalization of air services.

India has concluded several bilateral agreements on air linkages with ASEAN countries. In 2005, India signed an aviation pact with the Philippines and a revised air service agreement with Singapore. India has also agreed on cooperating with Thailand in civil aviation under the Framework Agreement for India-Thailand FTA. In addition, at the second India-ASEAN Summit, an open skies arrangement with ASEAN was offered by India to allow certain designated airlines from the regional grouping to run daily flights to India.

However, because of the slow pace at which their respective aviation sectors are opening up, the India-ASEAN open skies agreement has been dawdling. Singapore is the only country in ASEAN having Air Services Agreements (ASAs) with more than 90 countries around the world. The other ASEAN countries are pursuing protectionism that restricts the scope of cooperation within ASEAN and between India and ASEAN. Lee urged the ASEAN Transport Mnisters at the Meeting to take some "bold steps" to achieve a single aviation market by 2015.

The Southeast Asian regional grouping has invited the Indian government to join the ASEAN open skies agreement that allows in its first stage, unlimited flights between capital cities. During the second stage, members would also be entitled to operate unlimited flights to secondary cities. If India joins the open skies agreement, Indian airlines would be offered the opportunity to launch unlimited flights to Singapore, Bangkok, Kuala Lumpur, and Manila among others. Currently, the open skies agreement with ASEAN allows certain Indian airlines to operate daily services to the capitals of 10 member states.

However, India and ASEAN lack a proper institutional mechanism to discuss India-ASEAN air connectivity issues. While the transport ministers of the ASEAN, China and Japan transport meet annually to consider enhancing connectivity, India does not take part in any such event. At the February 2007 Bangkok meeting, ASEAN looked forward to an ASEAN-China Regional Air Services Arrangement that would ensure an institutional set up for conducting regular ASEAN-China dialogue on connectivity. The hope of such an initiative with India seems unlikely in the near future.

Prior to 1990, the Indian aviation sector was under government control with limited access and scheduled services. Since then, with liberalization seeping into aviation, a number of private players have begun operating. However, liberalization has taken off only in the case of domestic private operators. Foreign airlines have not been granted many facilities. Furthermore, on many occasions, Air India has also shown its reluctance in opening up flight services to new destinations. India's agreement with the Philippines is an important example.

For centuries, the free flow of people between India and Southeast Asia has been carried on through sea-faring. In modern times, with the focus on "less-time for travel," air connectivity takes precedence. Air transportation ensures faster and more efficient flow of people and also brings in free movement of goods, services, investment and talent. Therefore, the need of the hour is to hasten the government's implementation plans if India wants to keep its Look East Policy going.