Business Mirror
December 20, 2010
IN a rare alliance among competitors, rival airlines have joined forces in seeking a cease-and-desist order (CDO) against Manila-based Southeast Asian Airlines (Seair) and Singaporean budget carrier Tiger Airways which they accuse of violating CAB (Civil Aeronautics Board) laws.
“It is noted that all four Philippine carriers took the unprecedented step of filing said consolidated opposition, in which we jointly requested the Board to issue a CDO directing Seair and Tiger to stop selling and promoting the Clark-Singapore vice-versa flights until the board is able to investigate the matter to determine if Seair and Tiger activities and operations fully comply with Philippine laws, rules and regulations,” said Philippine Airline (PAL) senior assistant vice president Socorro Gonzaga.
PAL, Air Philippines Corp. Zest Airways, Cebu Air asked the CAB to launch a full and exhaustive investigation into the matter for the purpose of asserting, among others, that the marketing agreement signed between Seair and Tiger is in strict compliance with the terms of the CAB Resolution 51 issued in 2008.
Section E of the said policy states that (Seair) should not allow (Tiger) access to traffic rights not otherwise available to (Tiger) or otherwise be used as a means to circumvent existing laws against cabotage access by Tiger.
Section F, meanwhile, states that no financial benefit shall be obtained by (Tiger) nor shall lease price be dependent on the profit or loss of the operation of (Seair).
Tiger earlier announced that it inked a marketing and lease agreement with Seair. Under the deal, Seair will be lent two Tiger Airways jets, which will be the biggest aircraft in Seair’s fleet. Seair flights will also be sold on Tiger’s website.
The airlines opposing Seair and Tiger’s so-called partnership arrangement believe that the agreement is not limited to that dry leasing by Seair of A320 aircraft from Tiger.
The CAB previously mandated Seair and Tiger to submit a copy of their marketing agreement but opposing carriers a sanitized may not be enough to allow the board to determine whether the two carriers are indeed complying with the said conditions. As such, they asked the CAB officials to closely scrutinize the marketing arrangement between Seair and Tiger. This may entail a meticulous review of the marketing agreement, a close monitoring of their marketing and distribution activities, and as requested above, a full blown investigation and hearing on the matter,” the airlines said.
Also, they alleged that Seair may be engaged in an act of air commerce without a valid approval from the CAB, which is a violation of the pertinent provisions of Republic Act 776. “A check of the web sites of both Tiger and Seair show that the flights are already available for booking and purchase.
However, there is express notation to the effect that, the [DG flights are subject to regulatory approval.’ The same strongly implies that Seair has not yet obtained approval to market and sell the flights from either the CAB or Civil Aviation Authority of Singapore.”
“Given the foregoing, we further request the board to immediately issue a CDO directing Seair and Tiger to stop advertising and offering the said flights for booking and sale until such time as the Board has determined that the activities being undertaken by Seair and Tiger are compliant with Philippine law, rules and regulations,” they said.
The letter was addressed to CAB executive director Carmelo Arcilla and was signed by Enrique Antonio Esquivel and Ma. Clara de Castro, counsels for PAL; Paterno Mantaring Jr., Cebu Pacific lawyer; Butch Rodriguez, Zest Airways senior vice president for commercial and external affairs; and John Voltaire Almeda, Air Philippines lawyer.
Aside from Seair and Tiger, Malaysia’s Air Asia announced plans to put up a unit in the country. Its founding chair, Tony Fernandes, recently formed a joint venture with businessmen Antonio “Tonyboy” Cojuangco, Michael Romero and Maan Hontiveros to put up Air Asia Philippines. This will be Air Asia’s third affiliate in the region, following the establishment of Air Asia Indonesia and Air Asia Thailand.
As this developed, Cebu Pacific said in a statement last week that it prepared for the increased competition in the local air travel sector.
“We are lean-and-mean efficient, with a very young fleet of Airbus aircraft and a highly motivated team. This year, our financial performance ranks among the best in the world. We are ready for more competition in our own country and in theirs,” said Candice Iyog, Cebu Pacific vice president for marketing and distribution.
Cebu Pacific also announced that its flight attendants will perform their famous “safety dance” on board select flights this holiday season.
In a separate statement, the Gokongwei-led budget carrier announced that its “Cabin Crew Safety Dance” would be making a comeback from December 20 to 31.
“It has been previously performed only on two flights, one from Manila to Butuan and another from Manila to Davao, to gather passenger feedback,” the company said in a statement.
Monday, December 20, 2010
Thursday, December 9, 2010
Pocket Open Skies: Calling for a Fair Deal, not a "toothless" exercise
Philippine Daily Inquirer
by Fair Trade Alliance - Philippines on Wednesday, December 8, 2010 at 8:04pm
The Philippines needs safeguards to ensure effectiveness and substantive value:
Any grant of air traffic entitlements must be reciprocal.
Entitlements to be granted must be only for operations between an airline’s home state and the Philippines, not between the Philippines and a third country (a.k.a. 5th/6th/7th freedom rights) unless Philippine carriers are able to obtain the same market access opportunities.
Only foreign airlines which have used or nearly exhausted their existing entitlements granted under bilateral air agreements could be given more entitlements. Priority should be given to the utilization of existing entitlements, of which there are reportedly millions of unused seat capacities available (as cited during recent congressional hearings).
Entitlements may only be granted to airlines of countries that have not imposed any trade restrictions in recent years that affect Philippine air carriers, e.g., no operating bans/blacklists or downgradings of safety/security status; no reports of governments denying applications by Philippine carriers without reasonable basis; no reports of discrimination in market access between Philippines vs. foreign airlines.
If, after two years of operation, it is demonstrated that tourist arrivals from a foreign airline’s home state have not increased by more than 50% overall, or by numbers equivalent to least 60% of the additional air seat capacity introduced by the grantee airline, then the granted entitlements shall be suspended. If the granted entitlements were incorporated into a bilateral aviation agreement, then such agreement shall be abrogated unilaterally by the Philippines.
"Pocket open skies" should have as its key underlying principle, the Constitutional provision (Article XII, Section 10) that: “In the grant of rights, privileges, and concessions covering the national economy and patrimony, the State shall give preference to qualified Filipinos.”; as well as the provision (Article XII, Section 12) that: “The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them competitive”.
Any grant of entitlements must not adversely affect Filipino jobs in the Philippine aviation industry, or lead to the loss of labor rights and privileges for Filipinos.
Any grant of entitlements must ensure that equal, if not preferential, privileges are given to airline companies in which Filipinos make up the majority of their total labor force.
Due diligence must be undertaken to avoid having foreign airlines with dummy operations in the Philippines, i.e., using the name and identity of a Philippine air carrier to operate a service to, from or within the Philippines, while the substantive portion of its business is conducted from a foreign country by a labor force and management team composed largely of non-Filipinos.
"Pocket open skies" require that national and/or local governments prioritize the development of airport infrastructure to support the targeted increase in tourism and ensure maximum adherence to safety and public convenience. Such as: (1) Construction of a full-fledged international terminal at Clark with multiple airbridge gates, along with a second runway to allow for parallel take-offs and landings (the existing second runway at Clark, which is too close to the first runway, must be converted to a taxiway instead), and of such length as to allow for take-offs of Airbus A380 and Boeing 747-400 and B747-8 long-range aircraft at full payload, (2) construction of high-speed rail and road access linking the Clark terminal directly to the population centers in Metro Manila and nearby provinces, and (3) construction of new airport and terminal facilities in Bohol, Aklan province, Palawan, Bicol and other key tourist destinations.
Our country’s unbridled ‘open skies’ policy is neither fair nor balanced for the local aviation industry in particular and the national economy in general. What FairTrade is pushing for is a “calibrated and step-by-step liberalization” of the industry, a liberalization process supportive of the modernization and expansion of the domestic aviation and ancillary industries based on thorough assessment of existing air agreements and within the framework of an Omnibus Aviation Industry Development Plan - not a sweeping and mindless liberalization, much less surrender of our options and national interest.
Like the Philippine islands and the seas around them, our skies are part of our national patrimony.
by Fair Trade Alliance - Philippines on Wednesday, December 8, 2010 at 8:04pm
The Philippines needs safeguards to ensure effectiveness and substantive value:
Any grant of air traffic entitlements must be reciprocal.
Entitlements to be granted must be only for operations between an airline’s home state and the Philippines, not between the Philippines and a third country (a.k.a. 5th/6th/7th freedom rights) unless Philippine carriers are able to obtain the same market access opportunities.
Only foreign airlines which have used or nearly exhausted their existing entitlements granted under bilateral air agreements could be given more entitlements. Priority should be given to the utilization of existing entitlements, of which there are reportedly millions of unused seat capacities available (as cited during recent congressional hearings).
Entitlements may only be granted to airlines of countries that have not imposed any trade restrictions in recent years that affect Philippine air carriers, e.g., no operating bans/blacklists or downgradings of safety/security status; no reports of governments denying applications by Philippine carriers without reasonable basis; no reports of discrimination in market access between Philippines vs. foreign airlines.
If, after two years of operation, it is demonstrated that tourist arrivals from a foreign airline’s home state have not increased by more than 50% overall, or by numbers equivalent to least 60% of the additional air seat capacity introduced by the grantee airline, then the granted entitlements shall be suspended. If the granted entitlements were incorporated into a bilateral aviation agreement, then such agreement shall be abrogated unilaterally by the Philippines.
"Pocket open skies" should have as its key underlying principle, the Constitutional provision (Article XII, Section 10) that: “In the grant of rights, privileges, and concessions covering the national economy and patrimony, the State shall give preference to qualified Filipinos.”; as well as the provision (Article XII, Section 12) that: “The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them competitive”.
Any grant of entitlements must not adversely affect Filipino jobs in the Philippine aviation industry, or lead to the loss of labor rights and privileges for Filipinos.
Any grant of entitlements must ensure that equal, if not preferential, privileges are given to airline companies in which Filipinos make up the majority of their total labor force.
Due diligence must be undertaken to avoid having foreign airlines with dummy operations in the Philippines, i.e., using the name and identity of a Philippine air carrier to operate a service to, from or within the Philippines, while the substantive portion of its business is conducted from a foreign country by a labor force and management team composed largely of non-Filipinos.
"Pocket open skies" require that national and/or local governments prioritize the development of airport infrastructure to support the targeted increase in tourism and ensure maximum adherence to safety and public convenience. Such as: (1) Construction of a full-fledged international terminal at Clark with multiple airbridge gates, along with a second runway to allow for parallel take-offs and landings (the existing second runway at Clark, which is too close to the first runway, must be converted to a taxiway instead), and of such length as to allow for take-offs of Airbus A380 and Boeing 747-400 and B747-8 long-range aircraft at full payload, (2) construction of high-speed rail and road access linking the Clark terminal directly to the population centers in Metro Manila and nearby provinces, and (3) construction of new airport and terminal facilities in Bohol, Aklan province, Palawan, Bicol and other key tourist destinations.
Our country’s unbridled ‘open skies’ policy is neither fair nor balanced for the local aviation industry in particular and the national economy in general. What FairTrade is pushing for is a “calibrated and step-by-step liberalization” of the industry, a liberalization process supportive of the modernization and expansion of the domestic aviation and ancillary industries based on thorough assessment of existing air agreements and within the framework of an Omnibus Aviation Industry Development Plan - not a sweeping and mindless liberalization, much less surrender of our options and national interest.
Like the Philippine islands and the seas around them, our skies are part of our national patrimony.
Friday, December 3, 2010
No need for open skies - CAAP
By Jess Diaz and Mary Ann Ll. Reyes (The Philippine Star) Updated December 02, 2010 12:00 AM
MANILA, Philippines – There is no need for the so-called “open skies” as the country is effectively pursuing a liberalized aviation policy, a representative of the Civil Aviation Authority of the Philippines (CAAP) said yesterday.
Lawyer Joseph Ray Gumabon told the House committee on transportation chaired by Leyte Rep. Roger Mercado that foreign airlines are free to include the country in their routes.
But they do not include the Philippines in their route map because there are not enough passengers, he said.
There is also the safety issue involving aviation infrastructure in the country, which has prompted US authorities to give the country a low safety rating, lumping it with some underdeveloped African nations, he said.
Committee member Eastern Samar Rep. Ben Evardone said he got the impression from the testimony of Gumabon that “we have no need for an open skies policy.”
“In fact, between the US and Manila, for instance, there are enough available airline seats but there are not enough passengers,” he said.
“There are apparently no restrictions for foreign airlines to fly to Clark in Angeles City, Cebu, Davao, and other local destinations,” he said.
For its part, Philippine Airlines (PAL) assured the lawmakers that it would support an open skies policy if it is fair, reciprocal and would not place local carriers at a disadvantage against foreign airlines.
PAL senior assistant vice president for external affairs Ma. Socorro Gonzaga said foreign carriers enjoy adequate access to Philippine skies, debunking claims there is lack of airline seats to accommodate tourists.
She said what the country really needs are more investments in infrastructure, a stable peace and order situation, and positive image abroad to attract tourists.
“It’s not the number of airline seats that is the behind the lack of tourist interest in the Philippines but the country’s negative image abroad, specially in the area of peace and order and security,” she pointed out.
Despite this perception, Gonzaga said PAL, as the country’s flag carrier, has always been at the forefront in developing key markets to boost Philippine tourism.
She said PAL is the only Philippine carrier flying to and from several significant destinations around the world, making it the one of the primary drivers of Philippine tourism.
She pointed out that since the Ramos administration, the Philippines has been liberally granting entitlements to foreign airlines. At present, she said there are 47.4 million seats available to foreign and local carriers.
However, of these available seats, only 10.97 million seats – or 23 percent of total entitlements – were used by foreign and local carriers last year.
Of the 10.97 million passengers that came to the country by air in 2009, only 2.9 million were tourists.
Gonzaga pointed out that these figures belie the claim by proponents of open skies that there is lack of airline seats to accommodate foreign visitors.
“Even without open skies, the six million tourist arrival target of the Department of Tourism by 2016 could be accommodated based on existing airline seats or entitlements available to both foreign and local carriers,” she stressed.
She said seat entitlements to Clark are about 25.6 million; to Cebu, 20.7 million; to Davao, 20.3 million, and to Kalibo, Bohol, Palawan and Laoag, 19.6 million. In Manila, there are 21.2 million seats available yearly.
Gonzaga said the figures effectively debunk the arguments of open skies advocates that the lack of airline seats is the principal reason for low tourist arrivals in the country.
MANILA, Philippines – There is no need for the so-called “open skies” as the country is effectively pursuing a liberalized aviation policy, a representative of the Civil Aviation Authority of the Philippines (CAAP) said yesterday.
Lawyer Joseph Ray Gumabon told the House committee on transportation chaired by Leyte Rep. Roger Mercado that foreign airlines are free to include the country in their routes.
But they do not include the Philippines in their route map because there are not enough passengers, he said.
There is also the safety issue involving aviation infrastructure in the country, which has prompted US authorities to give the country a low safety rating, lumping it with some underdeveloped African nations, he said.
Committee member Eastern Samar Rep. Ben Evardone said he got the impression from the testimony of Gumabon that “we have no need for an open skies policy.”
“In fact, between the US and Manila, for instance, there are enough available airline seats but there are not enough passengers,” he said.
“There are apparently no restrictions for foreign airlines to fly to Clark in Angeles City, Cebu, Davao, and other local destinations,” he said.
For its part, Philippine Airlines (PAL) assured the lawmakers that it would support an open skies policy if it is fair, reciprocal and would not place local carriers at a disadvantage against foreign airlines.
PAL senior assistant vice president for external affairs Ma. Socorro Gonzaga said foreign carriers enjoy adequate access to Philippine skies, debunking claims there is lack of airline seats to accommodate tourists.
She said what the country really needs are more investments in infrastructure, a stable peace and order situation, and positive image abroad to attract tourists.
“It’s not the number of airline seats that is the behind the lack of tourist interest in the Philippines but the country’s negative image abroad, specially in the area of peace and order and security,” she pointed out.
Despite this perception, Gonzaga said PAL, as the country’s flag carrier, has always been at the forefront in developing key markets to boost Philippine tourism.
She said PAL is the only Philippine carrier flying to and from several significant destinations around the world, making it the one of the primary drivers of Philippine tourism.
She pointed out that since the Ramos administration, the Philippines has been liberally granting entitlements to foreign airlines. At present, she said there are 47.4 million seats available to foreign and local carriers.
However, of these available seats, only 10.97 million seats – or 23 percent of total entitlements – were used by foreign and local carriers last year.
Of the 10.97 million passengers that came to the country by air in 2009, only 2.9 million were tourists.
Gonzaga pointed out that these figures belie the claim by proponents of open skies that there is lack of airline seats to accommodate foreign visitors.
“Even without open skies, the six million tourist arrival target of the Department of Tourism by 2016 could be accommodated based on existing airline seats or entitlements available to both foreign and local carriers,” she stressed.
She said seat entitlements to Clark are about 25.6 million; to Cebu, 20.7 million; to Davao, 20.3 million, and to Kalibo, Bohol, Palawan and Laoag, 19.6 million. In Manila, there are 21.2 million seats available yearly.
Gonzaga said the figures effectively debunk the arguments of open skies advocates that the lack of airline seats is the principal reason for low tourist arrivals in the country.
Lawmakers, aviation exec lukewarm to ‘open skies’
By Michael Lim Ubac
Philippine Daily Inquirer
First Posted 04:20:00 12/02/2010
MANILA, Philippines—Lawmakers are supporting Philippine Airlines’ opposition to the open skies policy that the Aquino administration is pursuing in order to increase tourist arrivals.
At a House transportation committee hearing Wednesday on several pending bills to open up the country’s aviation, PAL officials said it would only support a “fair and reciprocal” policy to open Philippine skies to foreign carriers, a sentiment that some committee members said they shared.
According to Ma. Socorro Gonzaga, PAL assistant vice president for external affairs, the number of airline seats was not the reason behind the lack of tourist interest in the Philippines, “but the country’s negative image abroad, especially in the area of peace and order and security.”
Mr. Aquino announced the open skies policy at the opening of the public-private partnerships and infrastructure conference last month.
He told foreign and local business leaders that his government would pursue the full implementation of EO 219 (the liberalization of air travel industry) in international aviation.
The Department of Tourism is targeting to attract 3.1 million tourists this year, progressively increasing to six million by 2016.
Mr. Aquino said the liberalization would be done gradually, starting with “what is called pocket open skies.”
However, PAL and House members at the hearing seemed lukewarm even to a partial open skies policy.
An official of the Civil Aeronautics Board told the hearing that open skies does not ensure more passengers.
Porvenir Porciuncula, CAB deputy executive director, said many foreign airlines have numerous seat entitlements, but are not actually flying to secondary gateways or key cities outside of Metro Manila like Davao, Cebu or Cagayan.
“It is really a function of the market. Open skies will not guarantee foreign airline flights to the country. The more urgent thing is to address infrastructure, facilities, the image of country abroad,” he said.
A representative of the Civil Aviation Authority of the Philippines said that while the country remained in the aviation blacklists, any law that would open up the country’s skies would be toothless because of lingering safety concerns at the airports.
This prompted some lawmakers to raise the possibility of shelving the bills calling for open skies.
Gonzaga also claimed that foreign carriers already enjoyed adequate access to Philippine skies.
She said there are at present 47.4 million seats available to foreign and local carriers, but only 10.97 million seats, or 23 percent, were used last year.
Philippine Daily Inquirer
First Posted 04:20:00 12/02/2010
MANILA, Philippines—Lawmakers are supporting Philippine Airlines’ opposition to the open skies policy that the Aquino administration is pursuing in order to increase tourist arrivals.
At a House transportation committee hearing Wednesday on several pending bills to open up the country’s aviation, PAL officials said it would only support a “fair and reciprocal” policy to open Philippine skies to foreign carriers, a sentiment that some committee members said they shared.
According to Ma. Socorro Gonzaga, PAL assistant vice president for external affairs, the number of airline seats was not the reason behind the lack of tourist interest in the Philippines, “but the country’s negative image abroad, especially in the area of peace and order and security.”
Mr. Aquino announced the open skies policy at the opening of the public-private partnerships and infrastructure conference last month.
He told foreign and local business leaders that his government would pursue the full implementation of EO 219 (the liberalization of air travel industry) in international aviation.
The Department of Tourism is targeting to attract 3.1 million tourists this year, progressively increasing to six million by 2016.
Mr. Aquino said the liberalization would be done gradually, starting with “what is called pocket open skies.”
However, PAL and House members at the hearing seemed lukewarm even to a partial open skies policy.
An official of the Civil Aeronautics Board told the hearing that open skies does not ensure more passengers.
Porvenir Porciuncula, CAB deputy executive director, said many foreign airlines have numerous seat entitlements, but are not actually flying to secondary gateways or key cities outside of Metro Manila like Davao, Cebu or Cagayan.
“It is really a function of the market. Open skies will not guarantee foreign airline flights to the country. The more urgent thing is to address infrastructure, facilities, the image of country abroad,” he said.
A representative of the Civil Aviation Authority of the Philippines said that while the country remained in the aviation blacklists, any law that would open up the country’s skies would be toothless because of lingering safety concerns at the airports.
This prompted some lawmakers to raise the possibility of shelving the bills calling for open skies.
Gonzaga also claimed that foreign carriers already enjoyed adequate access to Philippine skies.
She said there are at present 47.4 million seats available to foreign and local carriers, but only 10.97 million seats, or 23 percent, were used last year.
Thursday, December 2, 2010
Solons cold to 'open skies' policy
Manila Bulletin
By BEN R. ROSARIO
December 1, 2010, 7:53pm
MANILA, Philippines — Assured by government aeronautics agencies that the country already observes liberalized civil aviation regulation, key leaders of the House committee on transportation have suddenly gone cold to measures to adopt an “open skies” policy in the Philippines.
Reps. Ben Evardone (Lakas-Kampi, Eastern Samar), Rene Relampagos (LP, Bohol) and Magtanggol Gunigundo (Lakas-Kampi, Valenzuela) admitted they are not totally convinced an open skies policy is what the country needs to invigorate the tourism industry.
In Wednesday’s public hearing, Evardone and Relampagos entertained the idea of archiving House Bill 1352 and 3312 although both agreed later to give their authors, Reps. Rex Gatchalian (NPC, Valenzuela City) and Aurora Cerilles (NPC, Zamboanga del Sur), the opportunity to defend their proposals in the next hearing.
The positions taken by the solons were apparently triggered by statements issued by officials of the Civil Aviation Authority of the Philippines and the Civil Aeronautics Board during the hearing.
Lawyer Joseph Ray Gumabon of CAAP said “pocket open skies” will be rendered inutile unless the Philippines attains a Category 1 rating for its international aviation safety standards. At present the country is rated at Category 2.
Gumabon noted that a Category 2 status puts the country in the same standard level as many African nations.
The CAAP representative stressed that a holistic approach in aviation standards that would include internationally acceptable security and safety values must first be guaranteed before government opts for an open skies policy to fully liberalize the civil aviation industry.
CAB deputy executive director Porvenir Porciuncula told lawmakers that civil aeronautics is already under a liberalized status because global leaders in commercial aviation have free access to the country.
“Our air agreements already allow flights to most of the points outside Manila. The big markets, Japan, US, China, South Korea, they can operate in Cebu, Davao but what they are looking for is profitability,” said Porciuncula.
The CAB official stressed that the open skies policy should not be taken as a “cure all” to the government’s need to lure more travelers, particularly tourists, to the country.
“Kulang sa atin ay infrastructure and better marketing promotions. Peace and order and air safety is also important,” said Porciuncula.
Aquilino Zapanta of South East Asian Airlines and Socorro Gonzaga of the Philippine Airlines aired opposing positions on the issue.
Zapanta assured the Department of Justice that there are no constitutional infirmities in the bill when it comes to reciprocity.
“We don’t give or provide unilateral traffic rights to any airline into the Philipppines,” Zapanta said.
Gonzaga, PAL senior assistant vice president for external affairs, assured lawmakers that it would support an open skies policy but only if it is fair, reciprocal and would not unduly place local carriers at a disadvantage.
She said foreign carriers enjoy adequate access to Philippine skies, debunking claims there is lack of airline seats to accommodate tourists.
Gonzaga said the country needs more investments in infrastructure, a stable peace and order situation, and positive image abroad to attract tourists.
By BEN R. ROSARIO
December 1, 2010, 7:53pm
MANILA, Philippines — Assured by government aeronautics agencies that the country already observes liberalized civil aviation regulation, key leaders of the House committee on transportation have suddenly gone cold to measures to adopt an “open skies” policy in the Philippines.
Reps. Ben Evardone (Lakas-Kampi, Eastern Samar), Rene Relampagos (LP, Bohol) and Magtanggol Gunigundo (Lakas-Kampi, Valenzuela) admitted they are not totally convinced an open skies policy is what the country needs to invigorate the tourism industry.
In Wednesday’s public hearing, Evardone and Relampagos entertained the idea of archiving House Bill 1352 and 3312 although both agreed later to give their authors, Reps. Rex Gatchalian (NPC, Valenzuela City) and Aurora Cerilles (NPC, Zamboanga del Sur), the opportunity to defend their proposals in the next hearing.
The positions taken by the solons were apparently triggered by statements issued by officials of the Civil Aviation Authority of the Philippines and the Civil Aeronautics Board during the hearing.
Lawyer Joseph Ray Gumabon of CAAP said “pocket open skies” will be rendered inutile unless the Philippines attains a Category 1 rating for its international aviation safety standards. At present the country is rated at Category 2.
Gumabon noted that a Category 2 status puts the country in the same standard level as many African nations.
The CAAP representative stressed that a holistic approach in aviation standards that would include internationally acceptable security and safety values must first be guaranteed before government opts for an open skies policy to fully liberalize the civil aviation industry.
CAB deputy executive director Porvenir Porciuncula told lawmakers that civil aeronautics is already under a liberalized status because global leaders in commercial aviation have free access to the country.
“Our air agreements already allow flights to most of the points outside Manila. The big markets, Japan, US, China, South Korea, they can operate in Cebu, Davao but what they are looking for is profitability,” said Porciuncula.
The CAB official stressed that the open skies policy should not be taken as a “cure all” to the government’s need to lure more travelers, particularly tourists, to the country.
“Kulang sa atin ay infrastructure and better marketing promotions. Peace and order and air safety is also important,” said Porciuncula.
Aquilino Zapanta of South East Asian Airlines and Socorro Gonzaga of the Philippine Airlines aired opposing positions on the issue.
Zapanta assured the Department of Justice that there are no constitutional infirmities in the bill when it comes to reciprocity.
“We don’t give or provide unilateral traffic rights to any airline into the Philipppines,” Zapanta said.
Gonzaga, PAL senior assistant vice president for external affairs, assured lawmakers that it would support an open skies policy but only if it is fair, reciprocal and would not unduly place local carriers at a disadvantage.
She said foreign carriers enjoy adequate access to Philippine skies, debunking claims there is lack of airline seats to accommodate tourists.
Gonzaga said the country needs more investments in infrastructure, a stable peace and order situation, and positive image abroad to attract tourists.
Tuesday, November 30, 2010
Audit of Phl aviation standards postponed
By Mary Ann LL. Reyes (The Philippine Star) Updated November 29, 2010 12:00 AM
Last April, the European Commission banned Philippine carriers from flying to Europe due to safety concerns raised on local aviation standards, particularly those concerning the airports. While the Philippines does not fly to Europe, local carriers said this is affecting their relationship with other countries.
The ICAO Validation Mission (ICVM) was supposed to conduct its audit on Dec. 7-10, 2010 but postponed it due to operational concerns, it told the Civil Aviation Authority of the Philippines (CAAP).
The ICAO, a specialized agency of the United Nations, codifies the principles and techniques of international air navigation and fosters the planning and development of international air transport to ensure safe and orderly growth.
The ICAO Council adopts standards and recommended practices concerning air navigation, its infrastructure, flight inspection, prevention of unlawful interference, and facilitation of border-crossing procedures for international civil aviation, among others.
“This is sad, we’ve been working hard for this, but in a letter dated Nov. 9, 2010, ICAO has informed us of their decision to postpone the ICVM to an indefinite time,” CAAP director general Alfonso Cusi said.
In a Nov. 17 telephone conference, ICAO officers clarified to CAAP that “these operational reasons relate to the insecurity of ICAO in the sustainability of the present reforms being undertaken by CAAP.”
“The present unclear political announcements of a change in senior management could create, in ICAO’s opinion, an indeterminable future of professional processes within CAAP.”
Sources said this may relate to the Nov. 2, 2010 resolution passed by the CAAP board of directors, allegedly backed by Transportation Secretary Jose de Jesus, approving the appointments of seven persons to key management positions within the CAAP.
They said the resolution is questionable since it contravenes Republic Act 9497 and its implementing rules and regulations, and appropriate civil service regulations on the selection and appointment of career personnel.
“All appointees were based on the desire letter of the President and did not go through the regular procedure of the selection board, as prescribed by the law,” they added.
For his part, Cusi said that while he is not against the move, there is a law that created the CAAP and that it should be complied with. “Our compliance with our own aviation law is of greater concern to the international community,” he said.
The European Aviation Safety Agency (EASA), in its recent assessment on CAAP’s efforts said the latter “has undertaken a series of not only ambitious but also courageous reforms of the civil aviation oversight in place in the Republic of the Philippines.... To achieve this, it is essential that it continues to act independently of any political or economical influence, pursuant to the will of the legislator.”
“Once again, we have been reminded by the world that we are a member of the international community in civil aviation. We are being told that our compliance to international safety standards is first anchored on our respect and adherence to our own civil aviation law,” Cu said.
The Philippines has been downgraded by US aviation authorities also due to safety concerns. While the downgrade still allows Philippine Airlines (PAL) to continue flying its existing routes and frequencies, it prevents local carriers from mounting additional flights and destinations to the US.
Last April, the European Commission banned Philippine carriers from flying to Europe due to safety concerns raised on local aviation standards, particularly those concerning the airports. While the Philippines does not fly to Europe, local carriers said this is affecting their relationship with other countries.
The ICAO Validation Mission (ICVM) was supposed to conduct its audit on Dec. 7-10, 2010 but postponed it due to operational concerns, it told the Civil Aviation Authority of the Philippines (CAAP).
The ICAO, a specialized agency of the United Nations, codifies the principles and techniques of international air navigation and fosters the planning and development of international air transport to ensure safe and orderly growth.
The ICAO Council adopts standards and recommended practices concerning air navigation, its infrastructure, flight inspection, prevention of unlawful interference, and facilitation of border-crossing procedures for international civil aviation, among others.
“This is sad, we’ve been working hard for this, but in a letter dated Nov. 9, 2010, ICAO has informed us of their decision to postpone the ICVM to an indefinite time,” CAAP director general Alfonso Cusi said.
In a Nov. 17 telephone conference, ICAO officers clarified to CAAP that “these operational reasons relate to the insecurity of ICAO in the sustainability of the present reforms being undertaken by CAAP.”
“The present unclear political announcements of a change in senior management could create, in ICAO’s opinion, an indeterminable future of professional processes within CAAP.”
Sources said this may relate to the Nov. 2, 2010 resolution passed by the CAAP board of directors, allegedly backed by Transportation Secretary Jose de Jesus, approving the appointments of seven persons to key management positions within the CAAP.
They said the resolution is questionable since it contravenes Republic Act 9497 and its implementing rules and regulations, and appropriate civil service regulations on the selection and appointment of career personnel.
“All appointees were based on the desire letter of the President and did not go through the regular procedure of the selection board, as prescribed by the law,” they added.
For his part, Cusi said that while he is not against the move, there is a law that created the CAAP and that it should be complied with. “Our compliance with our own aviation law is of greater concern to the international community,” he said.
The European Aviation Safety Agency (EASA), in its recent assessment on CAAP’s efforts said the latter “has undertaken a series of not only ambitious but also courageous reforms of the civil aviation oversight in place in the Republic of the Philippines.... To achieve this, it is essential that it continues to act independently of any political or economical influence, pursuant to the will of the legislator.”
“Once again, we have been reminded by the world that we are a member of the international community in civil aviation. We are being told that our compliance to international safety standards is first anchored on our respect and adherence to our own civil aviation law,” Cu said.
The Philippines has been downgraded by US aviation authorities also due to safety concerns. While the downgrade still allows Philippine Airlines (PAL) to continue flying its existing routes and frequencies, it prevents local carriers from mounting additional flights and destinations to the US.
Sunday, October 31, 2010
Pocket open skies bucked
The Philippine Star
October 31, 2010 12:00 AM
MANILA, Philippines - A tourism industry leader has cautioned the government against rushing the implementation of pocket open skies, saying intensive consultations must first be conducted among affected stakeholders before deciding on the policy.
Consul General Robert Lim Joseph, chairman of the Tourism Educators and Movers Philippines (Team Philippines), said the government should call stakeholders in the aviation, travel and tourism industries to a series of dialogues to get their positions on the matter.
Joseph was reacting to a published report that quoted the Aquino administration as saying that it is studying the possibility of declaring a pocket open skies policy and that an executive order to that effect has already been drafted.
He said declaring pocket open skies would be a major policy decision which requires thorough study and discussions. “We cannot afford to trip on this move since it would affect a vital sector of the economy.”
Joseph warned that once a pocket open skies policy is declared and foreign airlines start flying into the country without restrictions on capacity and type of aircraft, it is hard to take this back, thus the need for utmost caution in considering the plan.
October 31, 2010 12:00 AM
MANILA, Philippines - A tourism industry leader has cautioned the government against rushing the implementation of pocket open skies, saying intensive consultations must first be conducted among affected stakeholders before deciding on the policy.
Consul General Robert Lim Joseph, chairman of the Tourism Educators and Movers Philippines (Team Philippines), said the government should call stakeholders in the aviation, travel and tourism industries to a series of dialogues to get their positions on the matter.
Joseph was reacting to a published report that quoted the Aquino administration as saying that it is studying the possibility of declaring a pocket open skies policy and that an executive order to that effect has already been drafted.
He said declaring pocket open skies would be a major policy decision which requires thorough study and discussions. “We cannot afford to trip on this move since it would affect a vital sector of the economy.”
Joseph warned that once a pocket open skies policy is declared and foreign airlines start flying into the country without restrictions on capacity and type of aircraft, it is hard to take this back, thus the need for utmost caution in considering the plan.
Sunday, October 24, 2010
Belmonte cautions vs haste in adopting open skies policy
By Jess Diaz (The Philippine Star) Updated October 23, 2010 12:00 AM
Speaking to reporters Thursday, Belmonte said the government should first improve aviation and tourism infrastructure before Malacañang or Congress could consider such a policy.
He said modernization of tourism and air transport facilities, not liberalization of air policy alone, could be the key to attracting more foreign tourists to the Philippines.
“It think it is the whole system, not only open skies, that should be considered to make us more competitive,” he said.
Belmonte noted that Malaysia has become a major tourist destination in Asia largely because it offers modern, state-of-the-art facilities to visitors.
He suggested that the P15-billion fund for public-private partnerships in President Aquino’s proposed P1.6-trillion 2011 national budget should cover tourism and aviation infrastructure.
The fund is principally intended for toll roads and airports.
The “open skies” issue has come up every now and then because of the still unresolved labor problem plaguing flag carrier Philippine Airlines (PAL).
Mr. Aquino has repeatedly threatened to consider such a policy if PAL management and the airline’s workers failed to resolve their dispute and the latter declared a strike.
Since national interest was involved, the Department of Labor has decided to assume jurisdiction over the problem, effectively preventing PAL’s workers from striking.
In a recent House budget hearing, Tourism Secretary Alberto Lim advocated a “pocket open skies” policy that would open some parts of the country to foreign carriers.
He said when such a policy was adopted in Clark, tourist arrivals at the free port increased significantly.
He said the same is true in Bali, Indonesia and Siem Reap, Cambodia, and in Vietnam.
He did not say though which parts of the country he wanted opened to foreign airlines.
In the same budget hearing, Negros Occidental Rep. Alfredo Benitez said Chinese tourists from Hong Kong and Macau continued to arrive at the free port in Sta. Ana, Cagayan even in the wake of the bloody Manila hostage-taking incident.
A company in which Benitez has some financial interest operates an integrated leisure and entertainment complex at the free port.
Planeloads of Hong Kong and Macau tourists visit the complex every week, Benitez said.
Speaking to reporters Thursday, Belmonte said the government should first improve aviation and tourism infrastructure before Malacañang or Congress could consider such a policy.
He said modernization of tourism and air transport facilities, not liberalization of air policy alone, could be the key to attracting more foreign tourists to the Philippines.
“It think it is the whole system, not only open skies, that should be considered to make us more competitive,” he said.
Belmonte noted that Malaysia has become a major tourist destination in Asia largely because it offers modern, state-of-the-art facilities to visitors.
He suggested that the P15-billion fund for public-private partnerships in President Aquino’s proposed P1.6-trillion 2011 national budget should cover tourism and aviation infrastructure.
The fund is principally intended for toll roads and airports.
The “open skies” issue has come up every now and then because of the still unresolved labor problem plaguing flag carrier Philippine Airlines (PAL).
Mr. Aquino has repeatedly threatened to consider such a policy if PAL management and the airline’s workers failed to resolve their dispute and the latter declared a strike.
Since national interest was involved, the Department of Labor has decided to assume jurisdiction over the problem, effectively preventing PAL’s workers from striking.
In a recent House budget hearing, Tourism Secretary Alberto Lim advocated a “pocket open skies” policy that would open some parts of the country to foreign carriers.
He said when such a policy was adopted in Clark, tourist arrivals at the free port increased significantly.
He said the same is true in Bali, Indonesia and Siem Reap, Cambodia, and in Vietnam.
He did not say though which parts of the country he wanted opened to foreign airlines.
In the same budget hearing, Negros Occidental Rep. Alfredo Benitez said Chinese tourists from Hong Kong and Macau continued to arrive at the free port in Sta. Ana, Cagayan even in the wake of the bloody Manila hostage-taking incident.
A company in which Benitez has some financial interest operates an integrated leisure and entertainment complex at the free port.
Planeloads of Hong Kong and Macau tourists visit the complex every week, Benitez said.
Friday, October 1, 2010
Air China orders four Boeing 777-300 ER long-haul airliners
September 30, 2010
Air China is to launch more direct long-haul routes to meet the increasing demand.
Air China has ordered four Boeing 777-300ER long-haul airliners for $1.1 billion, the US aeronautics giant said in a statement.
Boeing said China’s flagship carrier plans to use the airliners to expand its international routes.
Marlin Dailey, vice president for sales and marketing for Boeing Commercial Airplanes, called it “a great day in the history of our long and enduring partnership with Air China”.
“Today’s order of 777s also underscores Air China’s confidence in the world’s most successful twin-engine, long-haul airplane,” he said in the statement.
Air China’s vice president, Fan Cheng, was quoted as saying the 777-300ER “will be the backbone of our long-haul international fleet.”
“The airplane’s high efficiency and performance features will enable Air China to launch more direct long-haul routes to meet the increasing demand of our passengers,” he said according to the Boeing statement.
The twin engine, wide-bodied Boeing 777-300ER can carry 365 passengers over distances of up to 14,685 kilometres, according to Boeing.
Air China is to launch more direct long-haul routes to meet the increasing demand.
Air China has ordered four Boeing 777-300ER long-haul airliners for $1.1 billion, the US aeronautics giant said in a statement.
Boeing said China’s flagship carrier plans to use the airliners to expand its international routes.
Marlin Dailey, vice president for sales and marketing for Boeing Commercial Airplanes, called it “a great day in the history of our long and enduring partnership with Air China”.
“Today’s order of 777s also underscores Air China’s confidence in the world’s most successful twin-engine, long-haul airplane,” he said in the statement.
Air China’s vice president, Fan Cheng, was quoted as saying the 777-300ER “will be the backbone of our long-haul international fleet.”
“The airplane’s high efficiency and performance features will enable Air China to launch more direct long-haul routes to meet the increasing demand of our passengers,” he said according to the Boeing statement.
The twin engine, wide-bodied Boeing 777-300ER can carry 365 passengers over distances of up to 14,685 kilometres, according to Boeing.
Monday, September 27, 2010
Air New Zealand confident 2011 earnings will improve
Manila Bulletin
September 27, 2010
WELLINGTON - National carrier Air New Zealand is optimistic its operating earnings would improve in 2011, as the global airline industry was showing signs of recovery.
While the company's earnings will still sensitive to economic conditions and costs such as fuel, the company predicted operating earnings would rise in the year to June 2011, Air New Zealand Chairman John Palmer said in speech notes prepared for the annual shareholders meeting.
The company would increase capacity across its network in the coming year, Mr Palmer said.
Air New Zealand also said it would continue to look at opportunities across its network to partner with other airlines.
September 27, 2010
WELLINGTON - National carrier Air New Zealand is optimistic its operating earnings would improve in 2011, as the global airline industry was showing signs of recovery.
While the company's earnings will still sensitive to economic conditions and costs such as fuel, the company predicted operating earnings would rise in the year to June 2011, Air New Zealand Chairman John Palmer said in speech notes prepared for the annual shareholders meeting.
The company would increase capacity across its network in the coming year, Mr Palmer said.
Air New Zealand also said it would continue to look at opportunities across its network to partner with other airlines.
Sunday, September 26, 2010
JAL Ties Up with American Airlines, Cathay Pacific, and China Airlines
Manila Bulletin
September 26, 2010, 1:54pm
Japan Airlines (JAL) has forged bilateral agreements with American Airlines, Cathay Pacific Airways and China Airlines, to begin offering codeshare flights from the new international terminal at Haneda, scheduled to open on October 21, 2010.
Including new codeshare flights with American to 6 destinations in the United States via San Francisco and with Air France to 14 cities in Europe via Paris, JAL is set to expand its international network from Haneda to offer customers a wider range of travel choices and more convenience.
There will be 13 daily JAL-operated flights on 10 international routes out of Haneda from October 31, 2010.
Additionally, JAL's international network springing from the newest terminal will cover eleven destinations when it places its ˜JL' indicator on American's new daily New York flight come January 2011.
JAL will also market Cathay Pacific's twice daily flights to Hong Kong and China Airlines' twice daily flights to Taipei (Songshan).
Together with an increase in the number of flights on the Haneda--Seoul (Gimpo) and Haneda--Shanghai (Hongqiao) routes operated by existing codeshare partners Korean Air and China Eastern respectively, JAL will soon offer its customers up to 22 daily flights a day from Haneda, reaching out to 11 cities around the world.
As part of its codeshare agreement with American Airlines, JAL customers can connect easily to 6 destinations in the United States namely Dallas, Fort Worth, Los Angeles, Miami, Chicago, New York, and Honolulu from JAL's Haneda--San Francisco flight.
Customers bound for Europe can also enjoy the convenience of traveling through Haneda airport, with JAL's daily flight to Paris – the only Europe-bound flight from the new terminal.
Under an expanded agreement with long-term bilateral partner Air France, passengers can connect with ease from JAL's Haneda–Paris flight to Marseilles and Toulouse – new destinations on JAL's network map, as well as 12 other European cities of Stockholm, Barcelona, Copenhagen, Dusseldorf, Hamburg, Lyon, Nice, Munich, Berlin, Prague, Warsaw and Istanbul.
Customers will be able to arrive in most of the local cities in France, Germany, Spain or North Europe early in the day just before noon.
JAL will continue to operate a daily flight from Narita Airport to Paris, where customers can also connect on existing codeshare flights with Air France to key points around Europe. (EHL)
September 26, 2010, 1:54pm
Japan Airlines (JAL) has forged bilateral agreements with American Airlines, Cathay Pacific Airways and China Airlines, to begin offering codeshare flights from the new international terminal at Haneda, scheduled to open on October 21, 2010.
Including new codeshare flights with American to 6 destinations in the United States via San Francisco and with Air France to 14 cities in Europe via Paris, JAL is set to expand its international network from Haneda to offer customers a wider range of travel choices and more convenience.
There will be 13 daily JAL-operated flights on 10 international routes out of Haneda from October 31, 2010.
Additionally, JAL's international network springing from the newest terminal will cover eleven destinations when it places its ˜JL' indicator on American's new daily New York flight come January 2011.
JAL will also market Cathay Pacific's twice daily flights to Hong Kong and China Airlines' twice daily flights to Taipei (Songshan).
Together with an increase in the number of flights on the Haneda--Seoul (Gimpo) and Haneda--Shanghai (Hongqiao) routes operated by existing codeshare partners Korean Air and China Eastern respectively, JAL will soon offer its customers up to 22 daily flights a day from Haneda, reaching out to 11 cities around the world.
As part of its codeshare agreement with American Airlines, JAL customers can connect easily to 6 destinations in the United States namely Dallas, Fort Worth, Los Angeles, Miami, Chicago, New York, and Honolulu from JAL's Haneda--San Francisco flight.
Customers bound for Europe can also enjoy the convenience of traveling through Haneda airport, with JAL's daily flight to Paris – the only Europe-bound flight from the new terminal.
Under an expanded agreement with long-term bilateral partner Air France, passengers can connect with ease from JAL's Haneda–Paris flight to Marseilles and Toulouse – new destinations on JAL's network map, as well as 12 other European cities of Stockholm, Barcelona, Copenhagen, Dusseldorf, Hamburg, Lyon, Nice, Munich, Berlin, Prague, Warsaw and Istanbul.
Customers will be able to arrive in most of the local cities in France, Germany, Spain or North Europe early in the day just before noon.
JAL will continue to operate a daily flight from Narita Airport to Paris, where customers can also connect on existing codeshare flights with Air France to key points around Europe. (EHL)
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