Monday, March 21, 2011

News Update Philippine budget carrier calls for reciprocal 'open skies' deals

Manila (Philippine Daily Inquirer/ANN) - The Phillipines' budget carrier Cebu Pacific has urged the government to ensure that any perks granted to foreign airlines under the new "open skies" regime are also given to local carriers when flying abroad.

In a statement, the budget carrier aired "grave concerns" over Executive Order (EO) No. 29 that was signed by President Benigno Aquino III earlier in March, setting the guidelines for the further liberalisation of air rights in the country.

"EO 29 would afford foreign airlines benefits so critical that if they are not reciprocated by foreign governments, the growth and even the survival of Philippine carriers are at risk," Cebu Pacific said.

The order authorises the government to offer third, fourth and fifth freedom rights to the country's airports other than the Ninoy Aquino International Airport (NAIA) without restriction as to frequency, capacity, type of aircraft and other arrangements.

Foreign carriers will thus have access to the growing air travel market in the Philippines since they will have the right to mount flights to any airport in the Philippines excluding NAIA, as well as pick up passengers from the country to be flown to a third destination.

Foreign carriers, however, are still prohibited from operating flights within the Philippines under the EO.

Cebu Pacific said most of the rights given to foreign airlines under the new order were not enjoyed by Philippine carriers when flying abroad.

This will allow foreign companies to mount as many flights as they want to the Philippines, while the number of flights local carriers have to other countries remain restricted.

"Furthermore, to gain these rights, foreign carriers will not need to invest billions of dollars for their Philippine operations," Cebu Pacific said.

"We want the same benefits from the governments of these foreign airlines. We want reciprocity which is fair and reasonable," the company said.

"So if the Philippine government puts out the welcome mat for a foreign airline, Cebu Pacific fully supports that, as long as that foreign airline's government grants Philippine carriers the same opportunity," it added.

The Civil Aeronautics Board (CAB) has said that it would ensure that the implementation of the open skies regime be done fairly so as to protect local airlines.