The US has enjoyed benefits in the rapidly growing Asia-Pacific region for many years through its `Open Skies' agreements. What policies should the European Union and European airlines pursue in respect of this region? This paper provides a SWOT analysis for European carriers in the Asia Pacific region. As cross-border mergers are still restricted by ownership rules, equity investment may help airlines to develop strategic alliances and obtain airport slots. This paper found that Japan Airlines, Air China, China Eastern, Asiana Airlines and Malaysia Airlines are not global alliance members, but have co-operation agreements with European airlines. Garuda, China Southern Airlines, China Airlines, EVA Air and Philippines Airlines are not part of a global alliance group, nor do they have co-operation agreements with European airlines. There may be some options for European airlines to find an alliance partner in the region. As there is no single body in Asia-Pacific which can negotiate a multilateral agreement with the EU, liberalised Air Services Agreements like the German-New Zealand Air Services Agreement and the US Open Skies style agreements should be encouraged between countries in these two regions.
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