Tuesday, August 28, 2007 Gov't urged to study RP's airline industry before 'opening skies'
FLAG carrier Philippine Airlines (PAL) has urged the government to look into the plight of local airline firms before it implements an "open skies" policy.
PAL president Jaime Bautista made the appeal following reports that the Civil Aeronautics Boards (CAB) is finalizing amendments to Executive Order (EO) 500-A, which will give "exclusive privileges" to foreign carriers to fly to Clark and Subic.
Speaking before members of the Manila Rotary Club, Bautista said the goal of liberalization should be more for growth of the country and not for foreign carriers. "We therefore call on government policy makers to use the tool of liberalization wisely, responsibly, particularly in the crucial mission of negotiating aviation rights for access to international markets," he said.
Bautista said PAL does not oppose the "open skies" policy but what they are complaining is the way the Philippine Government favors foreign flag carrier even if other countries do not honor any reciprocity.
He also said EO 500, implemented during the time of former President Fidel V. Ramos, was a "one-sided and short sighted policy" because after granting Tiger Airways, Hong Kong Airlines and Asiana Airlines unilateral permit to fly the Macau-Clark, Hong Kong-Clark and Seoul-Clark routes, the home countries of the airlines rejected the application of two Philippine airlines to fly the Macau, Hong Kong and Korea.
Bautista said the US also has an "open skies" agreement with the Philippines "that assures US airlines of unlimited rights to fly to, through and from any point in the Philippines," however this is not the same case in local carriers.
He added that for the past years, PAL had been asking for the government to secure more access rights to Canada; Tokyo, Narita; China; Cambodia; and to the US but until this time, their frequencies remain limited.
Compared to other foreign airlines, Bautista said PAL and local carriers are not getting any subsidies from the government. "We are not asking to be pampered or sheltered. What we need is a fair chance to compete. What we need is equal opportunity. What we need is equal access to markets," he added,
Recalling when PAL nearly collapsed and then rebounded after it was privatized in 1992, Bautista said the government should now look on "open skies" as a magic scheme that will propel the Philippines to prosperity but it should be raised and give more air travelers, more revenues for the country and a healthy aviation industry.
"We ask that the Philippines always negotiate from a position of strength, and project the nation in a confident, optimistic and positive way," he said. (MSN/Sunnex)
