‘Open skies’ draft IRR skirts reciprocity rule

First Posted 21:32:00 04/14/2011
By Paolo Montecillo
Philippine Daily Inquirer

MANILA, Philippines—Ignoring calls made by the country’s top carriers, the government said it would allow foreign airlines to fly to the Philippines under the new “open skies” policy, even if it would not be reciprocated by the host countries of those airlines.

While it is still a priority, reciprocity of air rights for local carries will not be a requirement in allowing foreign airlines to mount more flights to the Philippines, the new implementing rules and regulations (IRR) for Executive Order No. 29 showed.

Signed earlier this year, EO 29 liberalizes the air rights regime in the country.

Under the new rules, foreign carriers that wish to mount flights to the Philippines may apply for new air rights that are over and above existing Air Service Agreements, which are bilateral deals that impose specific limits on the number of flights between two countries.

This is meant to allow more foreigners to travel to the Philippines, and in the process, help develop the country’s tourism sector and boost economic activity in far-flung areas.

Airports in Metro Manila are not covered by the “open skies” order.

A condition in the new rules states, “Such inclusion shall include the reciprocal grant to Philippine carriers of equivalent traffic rights” by the respective home countries of foreign airlines.

“The board reserves the right to revoke, suspend or restrict operations hereby granted in the event that the state of registry of the foreign carrier... failed to extend equal opportunity to Philippine carriers,” the rules made by the Civil Aeronautics Board (CAB) said.

“(But) the board may continue to allow operations of traffic rights... if the board deems that it promotes national interest and mutual benefits,” it added.

Earlier, local carriers’ Cebu Pacific and Philippine Airlines (PAL) called on the government to protect the country’s air travel industry by making sure that local carriers get the same air rights that foreign airlines will get.

However, business groups have said the fate of local carriers should not be the government’s concern, noting that liberalizing air rights would bring in much-needed investments into the country and increase competition in the industry.