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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENTS OF INDONESIA MALAYSIA AND THAILAND
ON EXPANSION OF AIR LINKAGES 1


            The Government [sic] of Indonesia, Malaysia and Thailand hereinafter referred to as the Participating Parties, having subscribed to the establishment of the Indonesia Malaysia Thailand Growth Triangle (IMT-GT);

            Desiring to promote, develop and enhance trade, commerce, tourism and cultural exchange among Indonesia, Malaysia and Thailand;

            Recognising the importance to expand and strengthen air services within the IMT-GT and to develop the mechanisms thereof;

            Considering the ADB report and recomendations on IMT-GT development projects.

            Recognising that the provisions of air services in the IMT-GT would result in the following benefits:-

            a) It will provide access for the population within the area;

            b) It will help encourage investors to locate themselves in the area; and

            c) It will spur intra-regional trade and tourism;

            Desiring to foster closer friendship, cooperation and solidarity among the peoples of the IMT-GT as well as their respective airlines;

            Desiring to adhere to the principles and provisions of the Convention on International Civil Aviation signed at Chicago on December 7, 1944;
Without prejudice to existing agreement/s, national law/s and regulation/s Participating Parties have agreed to the following:-

            1. To give full commitment, cooperation and coordination and adopt a practical and pragmatic approach for advanced and accelerated imple-mentation of air linkages between and among key points within the IMT-GT, and to pursue intra-regional cooperation.

            2. To cooperate in the harmonization of rules and procedures and to facilitate transportation of passengers, mail and cargo.

            3. To exchange pertinent information in order to strengthen aviation data base for the IMT-GT on a regular basis.

            4. To continuously undertake programmes and projects that will ensure aviation safety and security.

            5. To identify and prioritise other programmes and projects which are needed for further development of air linkages.

            6. To promote the development of air services within the IMT-GT. Cooperation within the IMT-GT need not necessarily require trilateral agreement. Any two of the Participating Parties could initiate cooperative arrangements between and among them which will be recognised as part of the IMT-GT cooperation.  The other party could join in when they are ready.

                    6.1 Points in the IMT-GT are listed in Schedule A.

                    6.2 Measures will be needed to ensure progressive implementation of air linkages to achieve IMT-GT goals and objectives.

                            6.2.1 Immediate cooperation plans have to be developed to establish air linkages and provide air services (scheduled and non-scheduled) to connect points in the IMT-GT with full third and fourth freedom traffic rights without any restrictions on capacity, frequency and aircraft type.2

                            6.2.2 There shall be no carriage of cabotage traffic.

                            6.2.3 Co-terminalisation (blinded sector) is permitted.

            7. Participating parties have designated airlines as follows:

INDONESIA – PT Garuda Indonesia, PT Merpati
Nusantara, PT Mandala Airlines, PT Lion Airlines, PT Bayu Air and PT SMAC

MALAYSIA – Pelangi Airways, Mofaz Air and
Malaysia Airlines (MAS)

THAILAND – PB Air
Each Participating Party is permitted to designate any of its other airline or airlines for the purpose of operation of services.3


            8. In the ASEAN spirit of solidarity and cooperation, Participating Parties shall consult each other from time to time in ensuring the implementation of this Memorandum of Understanding.

            This Memorandum of Understanding shall enter into force on the date of signing.

            Done at Bangkok on the 10th day of April 1995.
 
 

For the Government of the Republic of Indonesia
(H.E. I Gede Awet Sara)
Ambassador Extraordinary and Plenipotentiary
 

For the Government of Malaysia
(H.E. Dato Zainal Abidin bin Alias)
Ambassador Extraordinary and Plenipotentiary
 

For the Government of the Kingdom of Thailand
(H.E. Krasae Chanawongse)
Minister of Foreign Affairs

SCHEDULE A
POINTS IN THE IMT-GT
Participating Parties  Points
1. Indonesia Medan  Banda Aceh
 Nias
 Padang4
2. Malaysia Penang  Ipoh
 Langkawi
3. Thailand  Hat Yai
 Pattani
 Narathiwat

1  Thailand signed this Memorendum on 10 April 1995, the date on which the Memorendum entered into force. Back

2 The outcome of the 3rd IMT-GT Working Group meeting on Expansion of Air Linkages at Penang, 11-12 January 2001.Back

3 The outcome of the IMT-GT Working Group meeting on Expansion of Air Linkages, 2nd meeting at Medan, 3-4 September 1996 and 3rd meeting at Penang, 11-12 January 2001.Back

4  The outcome of the 2nd IMT-GT Working Group meeting on Expansion of Air Linkages at Penang, 3-4 September 2001.Back

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