CebuPac bats for reciprocity in ‘open skies’ policy adoption

Philippine Daily Inquirer
First Posted 21:22:00 04/05/2011
By Paolo Luis G. Montecillo

MANILA, Philippines—Gokongwei-led Cebu Pacific has called on the government to make good on its promise that the liberalization of the country’s air rights would not be skewed in favor of foreign airlines at the expense of local firms.

The company supports the government’s efforts to develop the local tourism sector, with an “open skies” regime as a key enabler and one of the drivers of economic growth, Cebu Pacific president and CEO Lance Gokongwei said in a speech on Tuesday.

But Gokongwei stressed the need for reciprocity in implementing an “open skies” policy. He urged the government to grant perks only to airlines from countries that do the same for carriers from the Philippines.

“We have always been supportive of aviation liberalization including ‘open skies’ agreements with other countries,” Gokongwei said.

Today, the number of flights between two countries depends on pre-determined limit agreed upon by two governments. With an “open skies” policy, foreign airlines will be allowed to fly to the Philippines as much as they want, with the only limit being airport space.

“We were a major beneficiary of domestic aviation deregulation, and we have never been shy about our support for a liberalized aviation industry,” he added.

However, he said the company had to break “corporate tradition” by expressing concern over the lack of reciprocity under Executive Order No. 29, which mandates the implementation of the liberalized rules.

“If foreign carriers are given unlimited access on routes to and from the Philippines, we believe it is only fair that Cebu Pacific and other local airlines be given unlimited access to and from the Philippines to these carriers’ home countries,” he said.

He said this would result in a more competitive but fair playing field that would translate to better services to consumers and lower fares.

Gokongwei noted that although the government had been more liberal in granting additional seat entitlements in the past few years, the lack of reciprocity had made it easier for foreign airlines to fly to the Philippines than it had for local firms to fly abroad.

For instance, requests by local airlines to mount additional flights to Japan have repeatedly been snubbed. But recently, All Nippon Airways was allowed to mount new direct flights to Tokyo.

Gokongwei said the Philippines should consider entering into a bilateral “open skies” regime with Japan, similar to what Malaysia and Indonesia have done.

He also called on the government to fast-track the signing of the multilateral “open skies” deal with other Southeast Asian nations. This deal seeks to include secondary airports in the region as the existing deal covers only main airports.

The government should also consider a similar deal with Middle Eastern countries and Europe, where no Philippine carrier currently flies.

The Makati Business Club (MBC) earlier said the government should ignore the pleas by local airlines. The “open skies” regime, said the group formerly led by now Tourism Secretary Alberto Lim, would attract additional investments in the country, outweighing the disadvantages enumerated by the local airlines.