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Monday, December 08, 2003
Qatar Airways rejects explanation by CAB

QATAR Airways has disputed the Civil Aeronautics Board’s (CAB) allegations that the bilateral air agreement between Qatar and the Philippines prevents it from granting the airline fifth freedom rights.

It also warned that diplomatic relations will be strained, as well as potential economic gains to Cebu forfeited, by the CAB’s decision to grant, and then withdraw, Qatar Airways’ fifth freedom right.

Qatar Airways Philippines and Micronesia area manager Mario Hachem told Sun.Star that the RP-Qatar air agreement allows the national flag carriers of Qatar to enjoy the fifth freedom traffic right.

The airline had scheduled flights from Doha, Qatar to Cebu starting Dec. 10. The fifth freedom right would have allowed the airline to stop at a third point, in particular Singapore, to pick up passengers before flying on to Cebu, and vice versa.

Mistake

But three weeks after it granted Qatar its fifth freedom traffic rights last October, CAB withdrew its decision, saying it had made a “mistake.”

Last Friday, the CAB, in a statement, explained that “Qatar Airways can’t fly between Cebu and Singapore simply because it is not allowed to under the current RP-Qatar agreement.”

But Hachem revealed that CAB’s first explanation to Qatar for withdrawing its right was that the Qatar government had not advised the Philippines that Qatar Airways was its flag carrier.

“But CAB-Qatar had advised CAB-Philippines last year yet on this. This document (which he showed Sun.Star) is a proof to that,” he said.

In another explanation, CAB said it had received Qatar’s notice of Qatar Airways being its flag carrier, but the Philippines had not acknowledged the airline as Qatar’s flag carrier yet.

“The bilateral agreement does not specify that the Philippines will have to recognize Qatar’s flag carrier first before it can enjoy the fifth freedom right,” Hachem argued.

“This mistake will affect other relationships between the two countries, not only their bilateral air agreement,” the airline executive warned.

Unacceptable

“CAB’s explanation is unacceptable to us and to the CAB of Qatar. Everybody is entitled to commit a mistake, but a government agency should not.”

He said Qatar Airways might cancel its planned direct flights from Doha to Cebu via Singapore entirely if CAB does not grant the airline its right.

He added that Qatar’s existing five flights per week to Manila might also be affected.

In demand

According to a study conducted by Qatar, Cebu is very much in demand in the European leisure market and the Middle East.

“We found out that our market will not only be the overseas Filipino workers, but also Europeans and those from the Middle East who are looking for new destinations,” Hachem said.

“We planned to offer tour packages to our markets—for instance, for them to stay in Singapore for 10 days, then fly to Cebu for the next days. If we won’t be allowed to pick them up and bring them to Cebu, business will not be viable,” Hachem said.

He said Qatar had invested millions of dollars in preparation for its launching. These include for the recruitment and training of staff, renovation of its office at the QC Pavilion and for its promotions.

“But we would rather lose the millions than drag on with our losses.”
He, however, lauded the Cebu tourism industry for giving Qatar a “warm welcome.” JBN


(December 8, 2003 issue)
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