Open skies regulations out early next month

Business World
April 19, 2011 11:49:19 PM

FOREIGN CARRIERS can begin applying for new entitlements next month with the government scheduling an early May release of rules implementing a "pocket open skies" policy.

A public hearing was held yesterday on proposed guidelines, which Civil Aeronautics Board (CAB) deputy director Porvenir P. Porciuncula said "should be finished by May 2 ... after which we can start receiving applications from foreign [carriers]."

Malacañang last month issued Executive Orders (EOs) 28 and 29, which respectively reorganized the country’s negotiating panels and ordered continued liberalization of the air industry.

The CAB was ordered to draft the implementing rules and regulations (IRR) of the new policy -- targeted at increasing traffic to secondary airports -- and Mr. Porciuncula said the agency would be reviewing position papers due on Monday from airlines, government agencies and other stakeholders.

The CAB yesterday reiterated the government’s position of working towards overall benefits for the country as it noted domestic carriers’ concerns that they would not be getting the same access to foreign airlines’ home countries.

"It’s not reciprocity but the totality of mutual benefits that should be looked into," Mr. Porciuncula said.

The draft IRR allows the CAB to take back entitlements if a foreign carrier’s home state does not allow reciprocal rights within 12 months.

However, it also allows the board to waive reciprocal rights if allowing foreign airlines added entry is seen as in the "national interest."

The reciprocity concern was again raised yesterday by Cebu Air, Inc. and South East Asian Airlines, Inc. (Seair).

"We’re asking that local carriers be given the opportunity to compete," Cebu Air Vice-President Alex B. Reyes said during the public hearing.

"We see that the draft IRR [would give us a] disadvantage if it would open up Philippine skies without mandating that the same benefits would be provided to local airlines," he added.

Seair President and Chief Executive Officer Avelino L. Zapanta, for his part, said the applications of foreign airlines "should be accompanied with the endorsement of their governments that they are willing to grant the same rights to any Philippine carrier." -- K. A. Martin