Cebu Pacific airs concerns on open skies policy

Manila Bulletin
March 22, 2011

MANILA, Philippines - Cebu Pacific has welcomed the increase in air services into the Philippines under the open skies policy but expressed concerns about certain provisions of the executive order that are apparently ill-advised.

"Executive Order 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," the airline said.

Under EO29 foreign airlines would be able to fly freely into and out of the country. On the other hand, Philippine carriers are limited to flights specified in existing air agreements with other countries.

Cebu Pacific cited as examples: Hong Kong carriers could now mount as many flights as they liked to Cebu, whilst Philippine carriers are limited to 2,500 seats per week.

Chinese carriers would be able to fly from any of the major cities of Beijing, Shanghai or Guangzhou to Kalibo whilst Philippine carriers are denied such access by the Chinese.

Korean carriers would have unlimited access to mount flights to Cebu or Davao, whilst Philippine carriers are limited by the current entitlements that are fully utilized.

Singaporean or Malaysian carriers would be granted rights to fly to any country beyond the Philippines. Philippine carriers have no access to additional rights to fly beyond Singapore or Malaysia.

"Furthermore, to gain these rights foreign carriers will not need to invest billions of dollars for their Philippine operations. Their investments are in their own countries. Their employees are not Filipinos."

CEB has invested billions of dollars to expand air services within the country and to and from the Philippines to serve the Filipino public and tourists alike with low fares and brand new aircraft.

The airline employs 4,300 Filipinos and countless thousands more are indirectly employed. "We want the same benefits from the governments of these foreign airlines. We want reciprocity which is fair and reasonable."