This policy paper discusses the prospects for an ASEAN Community Carrier and its benefits for the region. Given that air transportation and airlines play a crucial part in economic growth, it is critical for the foreign investment regime for airlines to be relaxed further. The paper recommends that ASEAN investors should have the opportunity to invest in other ASEAN member states’ airlines to establish so-called Community Carriers. This will also increase foreign direct investment (FDI) into member states. The result will be greater benefits for the ASEAN air transportation system, allowing airlines to operate more efficiently and to meet growing demand from trade and tourism.