Saturday, May 21, 2011

News Update Philippines orders Tiger Airways to stop seat sale


Aviation authorities said on Thursday they have blocked a marketing deal between budget Singapore carrier Tiger Airways and a small local partner in a fight over the booming domestic aviation market. -- PHOTO: AFP


MANILA - AVIATION authorities said on Thursday they have blocked a marketing deal between budget Singapore carrier Tiger Airways and a small local partner in a fight over the booming domestic aviation market.
The Civil Aeronautics Board said the deal between Tiger and South East Asian Airlines (SEAir) broke a law banning foreign carriers from operating domestic routes.
It also ordered SEAir to stop advertising flights between Manila and the major cities of Cebu and Davao that it was due to start flying on July 2.
'A circumvention of the law on cabotage is against public interest and constitutes an unfair business practice that must be nipped in the bud,' the board said in its written order dated May 18.
The writ is temporary but the board is set to make a final ruling shortly on allegations that Tiger and SEAir broke the law, its hearing officer Wyrlou Zamudio told AFP.
The final ruling should be issued at the board's next meeting, Mr Zamudio said, while adding no specific date has been set for the meeting. -- AFP