Manila Bulletin
May 30, 2011
SYDNEY (AFP) – A damaging industrial row between Australian airline Qantas and its pilots could threaten the future of the carrier, chief executive Alan Joyce said.
International pilots on the ''Flying Kangaroo'' are poised to take their first strike action in 45 years after negotiations on pay and conditions with management broke down last week.
Joyce told ABC television he would not be giving in to all demands from the Australian and International Pilots Association (AIPA) which Qantas estimates would cost more than Aus$300 million (US$320 million).
''We believe that some of the demands that are being put on the table are outrageous,'' Joyce said late Thursday, adding that they could result in job losses within the company if implemented.
''There are certain demands I cannot concede to because it will endanger the survival of the company into the long run.''
Asked whether the airline's future was at risk due to the union action, Joyce replied: ''It is at that stage. Our international business is losing money. Our international business, if these demands are met, will go backwards even further.''
Joyce said the union's threat of industrial action could also potentially damage the Qantas brand.
''Unfortunately, this is the way some of these rogue union leaders think,'' he said. ''It's not good for their members, it's not good for employees, it's not good for our customers and we're going to have to stand up to them.''
The AIPA disputes Qantas' estimate of the cost of the claim, putting the figure at Aus$91 million. It says it's main concern is job security and that pilot jobs are not moved offshore to cheaper hubs in Asia.
Monday, May 30, 2011
Airphil Express gets reliability award
Manila Bulletin
May 30, 2011
MANILA, Philippines — Airphil Express, the country’s fastest growing budget airline, was recently awarded the top airline reliability performance award for the Q400* aircraft in the Oceania region by Bombardier, besting other airlines within this product category and region.
Airphil Express achieved the highest overall dispatch reliability, and placed first overall in the Q400* aircraft category for the Oceania region.
Bombardier applauded Airphil Express’ outstanding performance at a ceremony held during the company’s fourth annual Award Gala Dinner in Toronto, Canada.
“The winners of the Airline Performance Reliability Awards have achieved world-class performance over the past year. We congratulate Airphil Express, its management team and all its employees on their excellent results,” said Todd Young, Vice President, Customer Services and Support, Bombardier Commercial Aircraft.
“We are proud of this tremendous achievement and all of our employees who contribute daily to the success of our operation,” said Alfredo Herrera, senior vice president for Marketing and Sales.
The recognition was based on a review of the reliability statistics for airlines operating Q400* aircraft that have achieved over 99% dispatch reliability.
Airphil Express currently operates the newest aircraft fleet in the country. The company has more than 23 local destinations from its Manila hub alone, and at the end of 2010 introduced its first international destination, Singapore, with plans to launch more overseas destinations in the near future.
Airphil Express is also the only budget carrier in the region offering great-value travel services such as a 15 kg free baggage allowance and an added 7 kg hand carry allowance. It also provides excellent travel assistance like Web check-in, travel insurance, seat selector, and pre-paid baggage. (EHL)
May 30, 2011
MANILA, Philippines — Airphil Express, the country’s fastest growing budget airline, was recently awarded the top airline reliability performance award for the Q400* aircraft in the Oceania region by Bombardier, besting other airlines within this product category and region.
Airphil Express achieved the highest overall dispatch reliability, and placed first overall in the Q400* aircraft category for the Oceania region.
Bombardier applauded Airphil Express’ outstanding performance at a ceremony held during the company’s fourth annual Award Gala Dinner in Toronto, Canada.
“The winners of the Airline Performance Reliability Awards have achieved world-class performance over the past year. We congratulate Airphil Express, its management team and all its employees on their excellent results,” said Todd Young, Vice President, Customer Services and Support, Bombardier Commercial Aircraft.
“We are proud of this tremendous achievement and all of our employees who contribute daily to the success of our operation,” said Alfredo Herrera, senior vice president for Marketing and Sales.
The recognition was based on a review of the reliability statistics for airlines operating Q400* aircraft that have achieved over 99% dispatch reliability.
Airphil Express currently operates the newest aircraft fleet in the country. The company has more than 23 local destinations from its Manila hub alone, and at the end of 2010 introduced its first international destination, Singapore, with plans to launch more overseas destinations in the near future.
Airphil Express is also the only budget carrier in the region offering great-value travel services such as a 15 kg free baggage allowance and an added 7 kg hand carry allowance. It also provides excellent travel assistance like Web check-in, travel insurance, seat selector, and pre-paid baggage. (EHL)
Fat attendants taboo on airlines
Manila Bulletin
May 30, 2011
By CHRISTIAN OELRICH
BANGKOK (dpa) – A dispute at Thai Airways over a requirement that flight attendants meet weight and shape standards has sparked a debate over how important appearance is for the job.
Under the weight-loss rules, which the airline believes will help it increase passenger numbers, female attendants have to keep their Body Mass Index (BMI) below 25 points and their waistlines no more than 32 inches, while males must keep their BMI to 27.5 and waistlines to 35 inches.
Over a year ago, staff was given six months to lose the necessary weight and the company organized dietary and fitness advice to help.
Tests this spring saw 41 of the 6,000 flight attendants fail to pass the new standards, resulting in disciplinary proceedings.
Those who failed the tests were shifted to domestic routes while flight attendants unable to comply after a year have been told they will be transferred to ground services.
While the attendants have accused Thai Airways of discrimination and of violating their rights, the company doesn't understand the furore its decision has caused, saying the move was necessary to maintain weight standards.
The attractiveness of its flight attendants gives Thai Airways a competitive advantage over its rivals, said Teerapol Chotechanapibal, vice-president for products and customer services.
Some employees have refused to take the disciplinary action lying down, however, and have have lodged a formal complaint against their employers on the grounds of discrimination.
''The issue is now being addressed by a court so we are not able to comment until a verdict has been handed down,'' said Thai Airways spokeswoman Charlene Suddhimondala.
Thai Airways is not the only airline in Asia that has introduced weight requirements for its flight attendants.
''We are weighed once a year,'' revealed Oi Leng, a stewardess with Malaysia Airways (MAS), although the company said the requirements had nothing to do with beauty standards.
''Malaysia Airlines places top priority on the health of our cabin crew. This is important to ensure they are fit to perform their duties and help passengers in the event of an emergency. Our emphasis is on fitness and health rather than weight,'' said Mohd Salleh Ahmad Tabrani, MAS senior vice-president for inflight services.
At MAS, the tracking of weight is based on BMI readings of below 23 for female crew and 25 for male crew. The retirement age is 43 and 48 for female non-supervisory and supervisory crew respectively.
Singapore Airlines (SIA) and Philippine Airlines (PAL) also follow the practice.
May 30, 2011
By CHRISTIAN OELRICH
BANGKOK (dpa) – A dispute at Thai Airways over a requirement that flight attendants meet weight and shape standards has sparked a debate over how important appearance is for the job.
Under the weight-loss rules, which the airline believes will help it increase passenger numbers, female attendants have to keep their Body Mass Index (BMI) below 25 points and their waistlines no more than 32 inches, while males must keep their BMI to 27.5 and waistlines to 35 inches.
Over a year ago, staff was given six months to lose the necessary weight and the company organized dietary and fitness advice to help.
Tests this spring saw 41 of the 6,000 flight attendants fail to pass the new standards, resulting in disciplinary proceedings.
Those who failed the tests were shifted to domestic routes while flight attendants unable to comply after a year have been told they will be transferred to ground services.
While the attendants have accused Thai Airways of discrimination and of violating their rights, the company doesn't understand the furore its decision has caused, saying the move was necessary to maintain weight standards.
The attractiveness of its flight attendants gives Thai Airways a competitive advantage over its rivals, said Teerapol Chotechanapibal, vice-president for products and customer services.
Some employees have refused to take the disciplinary action lying down, however, and have have lodged a formal complaint against their employers on the grounds of discrimination.
''The issue is now being addressed by a court so we are not able to comment until a verdict has been handed down,'' said Thai Airways spokeswoman Charlene Suddhimondala.
Thai Airways is not the only airline in Asia that has introduced weight requirements for its flight attendants.
''We are weighed once a year,'' revealed Oi Leng, a stewardess with Malaysia Airways (MAS), although the company said the requirements had nothing to do with beauty standards.
''Malaysia Airlines places top priority on the health of our cabin crew. This is important to ensure they are fit to perform their duties and help passengers in the event of an emergency. Our emphasis is on fitness and health rather than weight,'' said Mohd Salleh Ahmad Tabrani, MAS senior vice-president for inflight services.
At MAS, the tracking of weight is based on BMI readings of below 23 for female crew and 25 for male crew. The retirement age is 43 and 48 for female non-supervisory and supervisory crew respectively.
Singapore Airlines (SIA) and Philippine Airlines (PAL) also follow the practice.
Sunday, May 29, 2011
Malaysia Airlines suffers loss, hit by fuel cost, strong currency
Manila Bulletin
May 29, 2011
KUALA LUMPUR (AFP) - Flag-carrier Malaysia Airlines said Wednesday it posted a first quarter net loss due to rising fuel prices and a strengthening ringgit.
The firm said it saw a net loss of 242.3 million ringgit ($79.0 million) in the first three months of the year, compared with a net profit of 320.3 million in the same quarter of 2010.
It recorded an operating loss of 267 million ringgit despite a 10 percent growth in passenger revenue that was fuelled by a 40 percent surge in its high-end business.
Earnings were hammered by a 32 percent year on year jump in fuel prices, while overseas business was hit by the ringgit, which makes Malaysian goods more expensive for clients abroad, Malaysia Airlines said.
Natural disasters and political unrest further impacted income, it said.
In March the International Air Transport Association said high oil prices would cut the industry profits by nearly half this year despite the growth in air travel with the economic recovery.
IATA said it was downgrading its profit outlook for the sector in 2011 to $8.6 billion from the $9.1 billion it estimated in December.
Despite Wednesday's data chief executive officer Tengku Azmil Zahruddin said the airline would continue to focus on growth strategies, including updating aircraft and attracting more customers through better services and marketing.
''We will not change our profitability targets and will work on adapting our strategies to ensure that the targets are met as best as possible, given the tough operating environment we are in,'' Tengku Azmil said.
Malaysia Airlines has so far ordered 35 Boeing 737-800, 15 Airbus A330-300 and six Airbus A380-800.
May 29, 2011
KUALA LUMPUR (AFP) - Flag-carrier Malaysia Airlines said Wednesday it posted a first quarter net loss due to rising fuel prices and a strengthening ringgit.
The firm said it saw a net loss of 242.3 million ringgit ($79.0 million) in the first three months of the year, compared with a net profit of 320.3 million in the same quarter of 2010.
It recorded an operating loss of 267 million ringgit despite a 10 percent growth in passenger revenue that was fuelled by a 40 percent surge in its high-end business.
Earnings were hammered by a 32 percent year on year jump in fuel prices, while overseas business was hit by the ringgit, which makes Malaysian goods more expensive for clients abroad, Malaysia Airlines said.
Natural disasters and political unrest further impacted income, it said.
In March the International Air Transport Association said high oil prices would cut the industry profits by nearly half this year despite the growth in air travel with the economic recovery.
IATA said it was downgrading its profit outlook for the sector in 2011 to $8.6 billion from the $9.1 billion it estimated in December.
Despite Wednesday's data chief executive officer Tengku Azmil Zahruddin said the airline would continue to focus on growth strategies, including updating aircraft and attracting more customers through better services and marketing.
''We will not change our profitability targets and will work on adapting our strategies to ensure that the targets are met as best as possible, given the tough operating environment we are in,'' Tengku Azmil said.
Malaysia Airlines has so far ordered 35 Boeing 737-800, 15 Airbus A330-300 and six Airbus A380-800.
Thursday, May 26, 2011
Japan’s first budget carrier to operate under brand name ‘Peach’
Manila Bulletin
May 26, 2011
TOKYO (AFP) – Japan's first budget airline said it would operate under the name "Peach."
A&F Aviation, set up by All Nippon Airways Co. with Hong Kong and Japanese investment funds in February, changed its corporate name to "Peach Aviation" to symbolize longevity, energy and happiness – as peaches do in Japan, it said.
"The name Peach was chosen to reflect our mission of becoming a completely new type of airline that links destinations in Japan and Japan with Asia," Peach Aviation Chief Executive Shinichi Inoue said in a statement.
"Our airline will also reflect the smart sophistication that has come to represent the words 'Cool Japan,'" he said.
Cabin crew will wear casual-look uniforms comprising plain shirts and trousers. The company also unveiled its aircraft design, showing an Airbus 320 in white, pink and fuchsia.
Anticipating booming Asian travel demand, the company was set up to be Japan's main low-cost carrier operating both international and domestic routes.
It aims to begin domestic services out of Kansai International Airport in the western Japanese city of Osaka in March 2012.
Service between Kansai and Incheon airport in Seoul will commence no later than May 2012, the airline said.
The new company is 66.7% owned by Japanese investors, with ANA holding a 33.4% stake. Hong Kong-based private equity company First Eastern Investment holds the remaining 33.3% stake, the maximum foreign ownership currently allowed in Japan.
Japan's air travel market is known for its high fares.
Cheaper domestic carriers such as Skymark and Air Do have been unable to offer the kind of heavily discounted fares associated with budget airlines in the US and Europe due to higher operating costs.
ANA has said the new carrier would offer tickets at half current fare levels.
The company has said it would cut costs by requiring customers to pay for all in-flight services and operate only with e-tickets.
May 26, 2011
TOKYO (AFP) – Japan's first budget airline said it would operate under the name "Peach."
A&F Aviation, set up by All Nippon Airways Co. with Hong Kong and Japanese investment funds in February, changed its corporate name to "Peach Aviation" to symbolize longevity, energy and happiness – as peaches do in Japan, it said.
"The name Peach was chosen to reflect our mission of becoming a completely new type of airline that links destinations in Japan and Japan with Asia," Peach Aviation Chief Executive Shinichi Inoue said in a statement.
"Our airline will also reflect the smart sophistication that has come to represent the words 'Cool Japan,'" he said.
Cabin crew will wear casual-look uniforms comprising plain shirts and trousers. The company also unveiled its aircraft design, showing an Airbus 320 in white, pink and fuchsia.
Anticipating booming Asian travel demand, the company was set up to be Japan's main low-cost carrier operating both international and domestic routes.
It aims to begin domestic services out of Kansai International Airport in the western Japanese city of Osaka in March 2012.
Service between Kansai and Incheon airport in Seoul will commence no later than May 2012, the airline said.
The new company is 66.7% owned by Japanese investors, with ANA holding a 33.4% stake. Hong Kong-based private equity company First Eastern Investment holds the remaining 33.3% stake, the maximum foreign ownership currently allowed in Japan.
Japan's air travel market is known for its high fares.
Cheaper domestic carriers such as Skymark and Air Do have been unable to offer the kind of heavily discounted fares associated with budget airlines in the US and Europe due to higher operating costs.
ANA has said the new carrier would offer tickets at half current fare levels.
The company has said it would cut costs by requiring customers to pay for all in-flight services and operate only with e-tickets.
Tuesday, May 24, 2011
Airphil Express wins Top Aircraft Reliability Award
Philippine Daily Inquirier
May 24, 2011
MANILA, Philippines—Airphil Express, a fast-growing budget airline in the Philippines, recently bagged the top airline reliability performance award for the Q400* aircraft in the Oceania region given by Bombardier Inc.
Besting other airlines in this product category and region, Airphil Express achieved the highest overall dispatch reliability, and placed first overall in the Q400* aircraft category for the Oceania region.
Bombardier cited Airphil Express’ outstanding performance at a ceremony held during the company’s fourth annual Award Gala Dinner in Toronto, Canada.
“The winners of the Airline Performance Reliability Awards have achieved world-class performance over the past year. We congratulate Airphil Express, its management team and all its employees on their excellent results,” said Todd Young, vice president for customer services and support of Bombardier Commercial Aircraft.
The recognition was based on a review of the reliability statistics for airlines operating Q400* aircraft that have achieved over 99 percent dispatch reliability.
Airphil Express operates the newest aircraft fleet in the country. The company is servicing 23 local destinations from its Manila hub alone. Late last year, it introduced its first international destination, Singapore, with plans to launch more overseas destinations in the near future.
Airphil Express is also the only budget carrier in the region offering great-value travel services such as a 15-kg free baggage allowance and an added 7-kg hand-carry allowance. It also provides travel assistance like Web check-in, travel insurance, seat selector and prepaid baggage.
May 24, 2011
MANILA, Philippines—Airphil Express, a fast-growing budget airline in the Philippines, recently bagged the top airline reliability performance award for the Q400* aircraft in the Oceania region given by Bombardier Inc.
Besting other airlines in this product category and region, Airphil Express achieved the highest overall dispatch reliability, and placed first overall in the Q400* aircraft category for the Oceania region.
Bombardier cited Airphil Express’ outstanding performance at a ceremony held during the company’s fourth annual Award Gala Dinner in Toronto, Canada.
“The winners of the Airline Performance Reliability Awards have achieved world-class performance over the past year. We congratulate Airphil Express, its management team and all its employees on their excellent results,” said Todd Young, vice president for customer services and support of Bombardier Commercial Aircraft.
The recognition was based on a review of the reliability statistics for airlines operating Q400* aircraft that have achieved over 99 percent dispatch reliability.
Airphil Express operates the newest aircraft fleet in the country. The company is servicing 23 local destinations from its Manila hub alone. Late last year, it introduced its first international destination, Singapore, with plans to launch more overseas destinations in the near future.
Airphil Express is also the only budget carrier in the region offering great-value travel services such as a 15-kg free baggage allowance and an added 7-kg hand-carry allowance. It also provides travel assistance like Web check-in, travel insurance, seat selector and prepaid baggage.
Friday, May 20, 2011
Tiger-Seair deal stopped
Manila Standard Today
May 20, 2011
by Jeremiah F. de Guzman
The Civil Aeronautics Board issued a provisional order stopping Tiger Airways Holdings Ltd. of Singapore from implementing a “marketing arrangement” with local carrier South East Asian Airlines for the Manila-to-Cebu and Manila-to-Davao flights using aircraft leased from Tiger.
The order “is based on strong indications of possible violation of the restriction on cabotage,” executive director Carmelo Arcilla said in a mobile phone message Thursday. Tiger in February said it will purchase a 32.5-percent stake in Seair for $6 million.
Seair president Avelino Zapanta said in a phone interview that major airlines were threatened by the aggressive expansion of the smaller carrier.
The CAB in an order dated May 13 directed Seair and Tiger to “enjoin from pursuing and implementing its marketing arrangement for the sale, booking and reservation systems as well as in the print and other media, for the routes Manila-Cebu and Manila-Davao using aircraft leased from Tiger.”
The ruling was in response to the joint complaint filed by Philippine Airlines, Cebu Pacific, Zest Air and Air Philippines, questioning the legality of the lease agreement between Seair and Tiger.
The regulator said the partnership was more than a marketing agreement and gave Tiger control over Seair’s domestic flights.
“[The partnership] is against public interest and constitutes an unfair business practice that must be nipped in the bud,” the CAB said.
Zapanta denied the allegations of the major carriers. “That is something they have been trying to prove in the last five years,” he said.
“We are operating the flights, we are the ones ground-handling and piloting the aircraft. We are in control of all the operations and we are only using Tiger’s booking engine,” Zapanta said.
He said Seair was paying Tiger a certain amount for every passenger who booked and boarded using the Singaporean company’s Web site. Other local carriers practice the same marketing scheme, he said.
Zapanta said despite the order, Seair would continue to use Tiger’s booking engine for international flights, although the agreement included domestic flights.
“That will just be temporary while resolving other issues raised by the carriers,” he said. Eric B. Apolonio, Bloomberg
May 20, 2011
by Jeremiah F. de Guzman
The Civil Aeronautics Board issued a provisional order stopping Tiger Airways Holdings Ltd. of Singapore from implementing a “marketing arrangement” with local carrier South East Asian Airlines for the Manila-to-Cebu and Manila-to-Davao flights using aircraft leased from Tiger.
The order “is based on strong indications of possible violation of the restriction on cabotage,” executive director Carmelo Arcilla said in a mobile phone message Thursday. Tiger in February said it will purchase a 32.5-percent stake in Seair for $6 million.
Seair president Avelino Zapanta said in a phone interview that major airlines were threatened by the aggressive expansion of the smaller carrier.
The CAB in an order dated May 13 directed Seair and Tiger to “enjoin from pursuing and implementing its marketing arrangement for the sale, booking and reservation systems as well as in the print and other media, for the routes Manila-Cebu and Manila-Davao using aircraft leased from Tiger.”
The ruling was in response to the joint complaint filed by Philippine Airlines, Cebu Pacific, Zest Air and Air Philippines, questioning the legality of the lease agreement between Seair and Tiger.
The regulator said the partnership was more than a marketing agreement and gave Tiger control over Seair’s domestic flights.
“[The partnership] is against public interest and constitutes an unfair business practice that must be nipped in the bud,” the CAB said.
Zapanta denied the allegations of the major carriers. “That is something they have been trying to prove in the last five years,” he said.
“We are operating the flights, we are the ones ground-handling and piloting the aircraft. We are in control of all the operations and we are only using Tiger’s booking engine,” Zapanta said.
He said Seair was paying Tiger a certain amount for every passenger who booked and boarded using the Singaporean company’s Web site. Other local carriers practice the same marketing scheme, he said.
Zapanta said despite the order, Seair would continue to use Tiger’s booking engine for international flights, although the agreement included domestic flights.
“That will just be temporary while resolving other issues raised by the carriers,” he said. Eric B. Apolonio, Bloomberg
Seair told to halt flights on 2 routes to Cebu, Davao
BusinessWorld
May 20-21, 2011
SOUTH EAST Asian Airlines (Seair) has been ordered to halt plans for flights from Manila to Davao and Cebu while the government decides whether the carrier’s partnership with a foreign airline for the routes is a violation of the country’s laws.
“The order was issued pending a final resolution of the issue... in order to prevent any injury to the public,” Civil Aeronautics Board (CAB) Executive Director Carmelo L. Arcilla said in a telephone interview yesterday, referring to CAB Resolution No. 1 issued on Wednesday.
CAB has effectively ordered Seair to stop the sale of seats for its Manila-Davao and Manila-Cebu routes which will be operational by July.
The resolution was issued after local carriers Philippine Airlines (PAL), Cebu Air, Inc. and Air Philippines claimed that Seair violated Philippine laws on so-called cabotage rights.
Current measures only allow domestic carriers to enjoy cabotage rights, or the transport of goods and passengers within the Philippines.
Seair is a domestic carrier but it will be flying the routes in partnership with Singapore-based Tiger Airways. Seair will be leasing Tiger Airways aircraft for the routes and will also be tapping the Singaporean carrier’s reservation system.
A hearing commenced between the affected parties last May 13, and a cease and desist order was issued five days later by CAB.
“I don’t think we violated any cabotage rights. It will be Seair flying those routes,” Seair President and Chief Executive Officer Avelino L. Zapanta said in a telephone interview yesterday.
“Even though the aircraft are Tiger Airways’, Seair is the one operating it. It will be Seair carrying those passengers and not the Tiger Airways,” Mr. Zapanta said.
Mr. Arcilla, for his part, noted that the partnership between the two carriers has long been opposed by other local airlines.
The two launched flights to Singapore in December last year, and flights to Hong Kong in March this year.
In November last year, PAL, Cebu Air, Air Philippines, and Zest Air filed a consolidated opposition to the partnership, cautioning the government that this will allow a foreign airline to tap the local market.
The procedural submission of position papers and answer to complaints were completed only in April this year.
In a separate text message to BusinessWorld, PAL Spokesperson Cielo C. Villaluna said “CAB is merely upholding the law when it ruled that foreign carriers can’t fly domestic routes as this will violate cabotage law. Competition must play by the rules.” -- Kathleen A. Martin
May 20-21, 2011
SOUTH EAST Asian Airlines (Seair) has been ordered to halt plans for flights from Manila to Davao and Cebu while the government decides whether the carrier’s partnership with a foreign airline for the routes is a violation of the country’s laws.
“The order was issued pending a final resolution of the issue... in order to prevent any injury to the public,” Civil Aeronautics Board (CAB) Executive Director Carmelo L. Arcilla said in a telephone interview yesterday, referring to CAB Resolution No. 1 issued on Wednesday.
CAB has effectively ordered Seair to stop the sale of seats for its Manila-Davao and Manila-Cebu routes which will be operational by July.
The resolution was issued after local carriers Philippine Airlines (PAL), Cebu Air, Inc. and Air Philippines claimed that Seair violated Philippine laws on so-called cabotage rights.
Current measures only allow domestic carriers to enjoy cabotage rights, or the transport of goods and passengers within the Philippines.
Seair is a domestic carrier but it will be flying the routes in partnership with Singapore-based Tiger Airways. Seair will be leasing Tiger Airways aircraft for the routes and will also be tapping the Singaporean carrier’s reservation system.
A hearing commenced between the affected parties last May 13, and a cease and desist order was issued five days later by CAB.
“I don’t think we violated any cabotage rights. It will be Seair flying those routes,” Seair President and Chief Executive Officer Avelino L. Zapanta said in a telephone interview yesterday.
“Even though the aircraft are Tiger Airways’, Seair is the one operating it. It will be Seair carrying those passengers and not the Tiger Airways,” Mr. Zapanta said.
Mr. Arcilla, for his part, noted that the partnership between the two carriers has long been opposed by other local airlines.
The two launched flights to Singapore in December last year, and flights to Hong Kong in March this year.
In November last year, PAL, Cebu Air, Air Philippines, and Zest Air filed a consolidated opposition to the partnership, cautioning the government that this will allow a foreign airline to tap the local market.
The procedural submission of position papers and answer to complaints were completed only in April this year.
In a separate text message to BusinessWorld, PAL Spokesperson Cielo C. Villaluna said “CAB is merely upholding the law when it ruled that foreign carriers can’t fly domestic routes as this will violate cabotage law. Competition must play by the rules.” -- Kathleen A. Martin
Thursday, May 19, 2011
CAB stops SEAIR’s new routes
Manila Bulletin
May 19, 2011
By ANJO PEREZ
MANILA, Philippines — Acting on the complaints of Philippine Airlines (PAL) and Cebu Pacific, the Civil Aeronautics Board (CAB) Thursday issued a cease-and-desist order for South East Asian Airlines (SEAIR) and Tiger Airways from starting to operate flights between Manila, Cebu, and Davao after they determined that airplanes from the Singapore-based air carrier will be used in the domestic service.
CAB findings revealed that SEAIR had been advertising their new flight routes using Tiger Airways aircrafts – which is illegal as it is not covered by the lease agreement between the two airline companies that was approved by the board.
It was learned that the partnership between the two air carriers only allows SEAIR from using Tiger Air airplanes for their regional flight service between the Philippines and Singapore.
According to the CAB resolution, using the Tiger Airways planes for the domestic routes is not allowed as SEAIR is only allowed the third, fourth, and fifth Air Freedom Rights, which is from one country to another, and not within.
The CAB resolution gave SEAIR and Tiger Airways 30 days to respond.
Meanwhile, SEAIR President Avelino Zapanta said they will comply with the resolution and that they will submit all the necessary documentation proving that their partnership and operation is legal.
May 19, 2011
By ANJO PEREZ
MANILA, Philippines — Acting on the complaints of Philippine Airlines (PAL) and Cebu Pacific, the Civil Aeronautics Board (CAB) Thursday issued a cease-and-desist order for South East Asian Airlines (SEAIR) and Tiger Airways from starting to operate flights between Manila, Cebu, and Davao after they determined that airplanes from the Singapore-based air carrier will be used in the domestic service.
CAB findings revealed that SEAIR had been advertising their new flight routes using Tiger Airways aircrafts – which is illegal as it is not covered by the lease agreement between the two airline companies that was approved by the board.
It was learned that the partnership between the two air carriers only allows SEAIR from using Tiger Air airplanes for their regional flight service between the Philippines and Singapore.
According to the CAB resolution, using the Tiger Airways planes for the domestic routes is not allowed as SEAIR is only allowed the third, fourth, and fifth Air Freedom Rights, which is from one country to another, and not within.
The CAB resolution gave SEAIR and Tiger Airways 30 days to respond.
Meanwhile, SEAIR President Avelino Zapanta said they will comply with the resolution and that they will submit all the necessary documentation proving that their partnership and operation is legal.
Saturday, May 14, 2011
Open skies policy harmful to Pinoy airlines!
The Philippine Star
May 14, 2011
SHOOTING STRAIGHT By Bobit S. Avila
Exactly a week ago we attended a presscon hosted by Philippine Airlines (PAL) for Cebu media to meet with new PAL vice president for corporate communications Joey G. de Guzman, editorial consultant Jonathan P. Gesmundo, PAL assistant vice president for sales and services Glenn D. Vallecera, and PAL spokesperson Ma. Cielo Villaluna. They gave us a bird’s eye view of what was really happening within PAL, especially with regards its troubles with its labor union.
I’ve read enough articles about PAL’s labor dispute that only reveal that the airline’s union officers are pushing for that strike because their very existence depended on it. The PAL management wants to reduce its number of employees from the current 7,000 to half by outsourcing many of its allied businesses. Some of these would be its food catering services and call center, which can easily be outsourced locally.
I recall that back in 2000, PAL’s maintenance company, Lufthansa Technik, was spun off and today this former PAL company is doing well, not only because it continues to maintain PAL’s fleet of aircraft, but it does maintenance work for other airlines as well. I visited this maintenance facility a year ago and I was surprised to find two Virgin Airways aircraft undergoing maintenance checks.
Clearly the problem plaguing PAL stems from those employees who would be retrenched. As expected, union officials more often than not don’t care if PAL crashes again for as long as they get what they want. But if you’ve been reading the horror stories happening in the airline industry around the world, you will see that most of these airline companies are in various states of trouble, thanks mostly to a serious drop in passengers, aggravated by record fuel prices. Even Singapore Airlines is experiencing similar problems as reported in Channelnews Asia. Let’s hope that PAL would solve its labor problems and look forward to a better future.
But then, our radar screen tells us that the future of the airline industry in the Philippines is headed for stormy weather and this doesn’t only include PAL, but Cebu Pacific Air (CEB) and AirPhil as well. That storm comes from the recently issued Implementing Rules and Regulations (IRR) guiding the so-called “open skies policy” as ordained by Executive Order 29 signed by President Benigno “Noynoy” Aquino III.
As I mentioned before, 25 years ago I advocated for an open skies policy because back then, PAL was the only airline flying across the Philippine archipelago and therefore, a monopoly. In those days, the number of tourists who came to our shores depended solely on the number of seats that PAL could fill its planes. But with CEB and AirPhil already flying their domestic and international routes, we must seek ways to keep these airlines and this is why I changed my mind and no longer believe that we should promote an open skies policy.
In last week’s presscon, we asked PAL to comment on the open skies policy but Joey de Guzman told us that PAL already said more than enough against this policy and would prefer that the other players in the industry speak out. Well, this is exactly what we got from CEB chairman Lance Gokongwei, who issued a statement that Cebu Pacific can compete with foreign carriers if given a “level-playing field” through equal and reciprocal traffic rights. I fully subscribe to Gokongwei’s thoughts. I mean, why should a foreign airline be given equal rights and opportunities in our own country to compete with our local airlines, when their own governments would not return the favor to our domestic carriers?
The Civil Aeronautics Board (CAB) has already given entitlements to a host of foreign airlines to fly to Philippine destinations either in the Ninoy Aquino International Airport (NAIA), the Mactan Cebu International Airport Authority (MCIAA) and other destinations in this country. What CAB ought to do is press upon these airlines to serve the routes that they have requested. Until the CAB does this, having an open skies policy would make it difficult for our local airlines to survive.
Perhaps the Aquino administration has been too hasty in approving an open skies policy because for many years, our current Tourism Secretary Alberto Lim belonged to the group espousing “Freedom to Fly.” As Lance Gokongwei pointed out, “With reciprocal open skies, CEB as a homegrown Philippine flag carrier will have the opportunity to offer its Filipino brand of service and trademark low fares to the Asia-Pacific region. Sadly the current IRR of EO 29 denies that option.” If P-Noy is pro-Filipino, then he should immediately put the brakes on EO 29 as this policy is detrimental to our Filipino-owned airline companies which must survive in this highly competitive global environment.
May 14, 2011
SHOOTING STRAIGHT By Bobit S. Avila
Exactly a week ago we attended a presscon hosted by Philippine Airlines (PAL) for Cebu media to meet with new PAL vice president for corporate communications Joey G. de Guzman, editorial consultant Jonathan P. Gesmundo, PAL assistant vice president for sales and services Glenn D. Vallecera, and PAL spokesperson Ma. Cielo Villaluna. They gave us a bird’s eye view of what was really happening within PAL, especially with regards its troubles with its labor union.
I’ve read enough articles about PAL’s labor dispute that only reveal that the airline’s union officers are pushing for that strike because their very existence depended on it. The PAL management wants to reduce its number of employees from the current 7,000 to half by outsourcing many of its allied businesses. Some of these would be its food catering services and call center, which can easily be outsourced locally.
I recall that back in 2000, PAL’s maintenance company, Lufthansa Technik, was spun off and today this former PAL company is doing well, not only because it continues to maintain PAL’s fleet of aircraft, but it does maintenance work for other airlines as well. I visited this maintenance facility a year ago and I was surprised to find two Virgin Airways aircraft undergoing maintenance checks.
Clearly the problem plaguing PAL stems from those employees who would be retrenched. As expected, union officials more often than not don’t care if PAL crashes again for as long as they get what they want. But if you’ve been reading the horror stories happening in the airline industry around the world, you will see that most of these airline companies are in various states of trouble, thanks mostly to a serious drop in passengers, aggravated by record fuel prices. Even Singapore Airlines is experiencing similar problems as reported in Channelnews Asia. Let’s hope that PAL would solve its labor problems and look forward to a better future.
But then, our radar screen tells us that the future of the airline industry in the Philippines is headed for stormy weather and this doesn’t only include PAL, but Cebu Pacific Air (CEB) and AirPhil as well. That storm comes from the recently issued Implementing Rules and Regulations (IRR) guiding the so-called “open skies policy” as ordained by Executive Order 29 signed by President Benigno “Noynoy” Aquino III.
As I mentioned before, 25 years ago I advocated for an open skies policy because back then, PAL was the only airline flying across the Philippine archipelago and therefore, a monopoly. In those days, the number of tourists who came to our shores depended solely on the number of seats that PAL could fill its planes. But with CEB and AirPhil already flying their domestic and international routes, we must seek ways to keep these airlines and this is why I changed my mind and no longer believe that we should promote an open skies policy.
In last week’s presscon, we asked PAL to comment on the open skies policy but Joey de Guzman told us that PAL already said more than enough against this policy and would prefer that the other players in the industry speak out. Well, this is exactly what we got from CEB chairman Lance Gokongwei, who issued a statement that Cebu Pacific can compete with foreign carriers if given a “level-playing field” through equal and reciprocal traffic rights. I fully subscribe to Gokongwei’s thoughts. I mean, why should a foreign airline be given equal rights and opportunities in our own country to compete with our local airlines, when their own governments would not return the favor to our domestic carriers?
The Civil Aeronautics Board (CAB) has already given entitlements to a host of foreign airlines to fly to Philippine destinations either in the Ninoy Aquino International Airport (NAIA), the Mactan Cebu International Airport Authority (MCIAA) and other destinations in this country. What CAB ought to do is press upon these airlines to serve the routes that they have requested. Until the CAB does this, having an open skies policy would make it difficult for our local airlines to survive.
Perhaps the Aquino administration has been too hasty in approving an open skies policy because for many years, our current Tourism Secretary Alberto Lim belonged to the group espousing “Freedom to Fly.” As Lance Gokongwei pointed out, “With reciprocal open skies, CEB as a homegrown Philippine flag carrier will have the opportunity to offer its Filipino brand of service and trademark low fares to the Asia-Pacific region. Sadly the current IRR of EO 29 denies that option.” If P-Noy is pro-Filipino, then he should immediately put the brakes on EO 29 as this policy is detrimental to our Filipino-owned airline companies which must survive in this highly competitive global environment.
Thursday, May 12, 2011
Qantas engineers plan work stoppage on Friday
Manila Bulletin
May 11, 2011
SYDNEY (AFP) – Engineers at Australia's Qantas will stop work for one hour on Friday after negotiations over pay and conditions broke down, the workers' union and the airline said.
The Australian Licensed Aircraft Engineers Association (ALAEA) said talks had ''hit a brick wall'' and the work stoppage was the first in a series of possible actions that are set to include 48-hour work stoppages.
''Qantas (engineers) are sick of the systematic dismantling of our industry by Qantas management,'' union secretary Steve Purvinas told reporters on Monday.
Qantas said it was ''extremely disappointed'' that the union had halted talks and announced the industrial action, which will involve members stopping work from 8 a.m. in all Australian ports on Friday, May 13.
But the airline said only minor delays were expected.
''Our priority is to ensure that the Australian travelling public is not disrupted and we are putting contingencies in place to minimize the impact of this action,'' operations executive Lyell Strambi said.
Qantas has been in talks with ALAEA, which has 1,600 members at the airline, and the Australian and International Pilots Association for months over pay and workplace conditions.
The airline's chief executive Alan Joyce has previously said he wanted to ''work with all of our employees to reach new agreements,'' adding that the company was committed to finding common ground with the unions.
Qantas, which said it was ready to resume negotiations at any time, said the union's claim equated to an increase in wages of between 5-6 percent each year for three years. But the union says its claim is modest and less than inflation, which hit 1.6 percent over the March quarter.
''What interests us more is job security, and for aircraft engineers that means simply being able to carry out aircraft maintenance in Australia,'' Purvinas said in a statement.
But Strambi accused the union of being intent on taking industrial action rather than genuinely negotiating for a new agreement for its members.
May 11, 2011
SYDNEY (AFP) – Engineers at Australia's Qantas will stop work for one hour on Friday after negotiations over pay and conditions broke down, the workers' union and the airline said.
The Australian Licensed Aircraft Engineers Association (ALAEA) said talks had ''hit a brick wall'' and the work stoppage was the first in a series of possible actions that are set to include 48-hour work stoppages.
''Qantas (engineers) are sick of the systematic dismantling of our industry by Qantas management,'' union secretary Steve Purvinas told reporters on Monday.
Qantas said it was ''extremely disappointed'' that the union had halted talks and announced the industrial action, which will involve members stopping work from 8 a.m. in all Australian ports on Friday, May 13.
But the airline said only minor delays were expected.
''Our priority is to ensure that the Australian travelling public is not disrupted and we are putting contingencies in place to minimize the impact of this action,'' operations executive Lyell Strambi said.
Qantas has been in talks with ALAEA, which has 1,600 members at the airline, and the Australian and International Pilots Association for months over pay and workplace conditions.
The airline's chief executive Alan Joyce has previously said he wanted to ''work with all of our employees to reach new agreements,'' adding that the company was committed to finding common ground with the unions.
Qantas, which said it was ready to resume negotiations at any time, said the union's claim equated to an increase in wages of between 5-6 percent each year for three years. But the union says its claim is modest and less than inflation, which hit 1.6 percent over the March quarter.
''What interests us more is job security, and for aircraft engineers that means simply being able to carry out aircraft maintenance in Australia,'' Purvinas said in a statement.
But Strambi accused the union of being intent on taking industrial action rather than genuinely negotiating for a new agreement for its members.
Air New Zealand probes Boeing 737 engine failure
Manila Bulletin
May 11, 2011
WELLINGTON (AFP) – Air New Zealand said Monday it was investigating why an engine on a Boeing 737 failed in mid-air over the weekend, forcing the plane to make an emergency landing.
Passengers said a ''huge bang'' rocked the plane during the flight from Auckland to Wellington early Sunday, as flames and smoke poured from the engine.
Air New Zealand reported no injuries and the plane, which was carrying 95 passengers and six crew, landed safely after diverting to Hamilton airport.
The airline said the crew noticed low oil pressure in the right-hand engine during the flight and shut it down as a precaution, with an inspection after landing confirming there was an oil leak.
''The engineers have found that oil did leak from the engine and will now transport it to our engineering facilities in Auckland, where it will be fully inspected over the next few days to determine the cause,'' it said.
Passenger Sarah Craven said it was a terrifying experience.
''There was a burst of flame and some smoke and then the whole plane shuddered,'' she told the Dominion Post newspaper. ''We plummeted left for about three seconds and then straightened up.
''Lots of people went 'Oh my God!' or yelped. A few people started crying. The poor guy in front of me had a panic attack and needed an oxygen mask.''
Fellow passenger Mike O'Donnell praised the pilot and crew for their calm response to the crisis and said authorities were well prepared when the plane landed in Hamilton.
''They had all the fire appliances out and there were paramedics on board and there were flashing lights,'' he told Radio New Zealand.
''They doused that part of the runway with water, just in case there was fire.''
In a separate incident, an Air New Zealand-owned 1900D Beech flying from Gisborne to Auckland on Sunday was forced to turn back a few minutes into the flight after the pilot noticed an engine was giving false power readings.
''The captain elected to shut down that engine as a precaution to prevent any possible damage to it and landed back at Gisborne,'' Air New Zealand said.
May 11, 2011
WELLINGTON (AFP) – Air New Zealand said Monday it was investigating why an engine on a Boeing 737 failed in mid-air over the weekend, forcing the plane to make an emergency landing.
Passengers said a ''huge bang'' rocked the plane during the flight from Auckland to Wellington early Sunday, as flames and smoke poured from the engine.
Air New Zealand reported no injuries and the plane, which was carrying 95 passengers and six crew, landed safely after diverting to Hamilton airport.
The airline said the crew noticed low oil pressure in the right-hand engine during the flight and shut it down as a precaution, with an inspection after landing confirming there was an oil leak.
''The engineers have found that oil did leak from the engine and will now transport it to our engineering facilities in Auckland, where it will be fully inspected over the next few days to determine the cause,'' it said.
Passenger Sarah Craven said it was a terrifying experience.
''There was a burst of flame and some smoke and then the whole plane shuddered,'' she told the Dominion Post newspaper. ''We plummeted left for about three seconds and then straightened up.
''Lots of people went 'Oh my God!' or yelped. A few people started crying. The poor guy in front of me had a panic attack and needed an oxygen mask.''
Fellow passenger Mike O'Donnell praised the pilot and crew for their calm response to the crisis and said authorities were well prepared when the plane landed in Hamilton.
''They had all the fire appliances out and there were paramedics on board and there were flashing lights,'' he told Radio New Zealand.
''They doused that part of the runway with water, just in case there was fire.''
In a separate incident, an Air New Zealand-owned 1900D Beech flying from Gisborne to Auckland on Sunday was forced to turn back a few minutes into the flight after the pilot noticed an engine was giving false power readings.
''The captain elected to shut down that engine as a precaution to prevent any possible damage to it and landed back at Gisborne,'' Air New Zealand said.
Tuesday, May 10, 2011
Qantas engineers plan work stoppage on Friday
May 10, 2011, 2:55pm
Manila Bulletin
SYDNEY (AFP) – Engineers at Australia's Qantas will stop work for one hour on Friday after negotiations over pay and conditions broke down, the workers' union and the airline said.
The Australian Licensed Aircraft Engineers Association (ALAEA) said talks had ''hit a brick wall'' and the work stoppage was the first in a series of possible actions that are set to include 48-hour work stoppages.
''Qantas (engineers) are sick of the systematic dismantling of our industry by Qantas management,'' union secretary Steve Purvinas told reporters on Monday.
Qantas said it was ''extremely disappointed'' that the union had halted talks and announced the industrial action, which will involve members stopping work from 8 a.m. in all Australian ports on Friday, May 13.
But the airline said only minor delays were expected.
''Our priority is to ensure that the Australian travelling public is not disrupted and we are putting contingencies in place to minimize the impact of this action,'' operations executive Lyell Strambi said.
Qantas has been in talks with ALAEA, which has 1,600 members at the airline, and the Australian and International Pilots Association for months over pay and workplace conditions.
The airline's chief executive Alan Joyce has previously said he wanted to ''work with all of our employees to reach new agreements,'' adding that the company was committed to finding common ground with the unions.
Qantas, which said it was ready to resume negotiations at any time, said the union's claim equated to an increase in wages of between 5-6 percent each year for three years. But the union says its claim is modest and less than inflation, which hit 1.6 percent over the March quarter.
''What interests us more is job security, and for aircraft engineers that means simply being able to carry out aircraft maintenance in Australia,'' Purvinas said in a statement.
But Strambi accused the union of being intent on taking industrial action rather than genuinely negotiating for a new agreement for its members.
Manila Bulletin
SYDNEY (AFP) – Engineers at Australia's Qantas will stop work for one hour on Friday after negotiations over pay and conditions broke down, the workers' union and the airline said.
The Australian Licensed Aircraft Engineers Association (ALAEA) said talks had ''hit a brick wall'' and the work stoppage was the first in a series of possible actions that are set to include 48-hour work stoppages.
''Qantas (engineers) are sick of the systematic dismantling of our industry by Qantas management,'' union secretary Steve Purvinas told reporters on Monday.
Qantas said it was ''extremely disappointed'' that the union had halted talks and announced the industrial action, which will involve members stopping work from 8 a.m. in all Australian ports on Friday, May 13.
But the airline said only minor delays were expected.
''Our priority is to ensure that the Australian travelling public is not disrupted and we are putting contingencies in place to minimize the impact of this action,'' operations executive Lyell Strambi said.
Qantas has been in talks with ALAEA, which has 1,600 members at the airline, and the Australian and International Pilots Association for months over pay and workplace conditions.
The airline's chief executive Alan Joyce has previously said he wanted to ''work with all of our employees to reach new agreements,'' adding that the company was committed to finding common ground with the unions.
Qantas, which said it was ready to resume negotiations at any time, said the union's claim equated to an increase in wages of between 5-6 percent each year for three years. But the union says its claim is modest and less than inflation, which hit 1.6 percent over the March quarter.
''What interests us more is job security, and for aircraft engineers that means simply being able to carry out aircraft maintenance in Australia,'' Purvinas said in a statement.
But Strambi accused the union of being intent on taking industrial action rather than genuinely negotiating for a new agreement for its members.
Air New Zealand probes Boeing 737 engine failure
May 10, 2011, 2:54pm
Manila Bulletin
WELLINGTON (AFP) – Air New Zealand said Monday it was investigating why an engine on a Boeing 737 failed in mid-air over the weekend, forcing the plane to make an emergency landing.
Passengers said a ''huge bang'' rocked the plane during the flight from Auckland to Wellington early Sunday, as flames and smoke poured from the engine.
Air New Zealand reported no injuries and the plane, which was carrying 95 passengers and six crew, landed safely after diverting to Hamilton airport.
The airline said the crew noticed low oil pressure in the right-hand engine during the flight and shut it down as a precaution, with an inspection after landing confirming there was an oil leak.
''The engineers have found that oil did leak from the engine and will now transport it to our engineering facilities in Auckland, where it will be fully inspected over the next few days to determine the cause,'' it said.
Passenger Sarah Craven said it was a terrifying experience.
''There was a burst of flame and some smoke and then the whole plane shuddered,'' she told the Dominion Post newspaper. ''We plummeted left for about three seconds and then straightened up.
''Lots of people went 'Oh my God!' or yelped. A few people started crying. The poor guy in front of me had a panic attack and needed an oxygen mask.''
Fellow passenger Mike O'Donnell praised the pilot and crew for their calm response to the crisis and said authorities were well prepared when the plane landed in Hamilton.
''They had all the fire appliances out and there were paramedics on board and there were flashing lights,'' he told Radio New Zealand.
''They doused that part of the runway with water, just in case there was fire.''
In a separate incident, an Air New Zealand-owned 1900D Beech flying from Gisborne to Auckland on Sunday was forced to turn back a few minutes into the flight after the pilot noticed an engine was giving false power readings.
''The captain elected to shut down that engine as a precaution to prevent any possible damage to it and landed back at Gisborne,'' Air New Zealand said.
Manila Bulletin
WELLINGTON (AFP) – Air New Zealand said Monday it was investigating why an engine on a Boeing 737 failed in mid-air over the weekend, forcing the plane to make an emergency landing.
Passengers said a ''huge bang'' rocked the plane during the flight from Auckland to Wellington early Sunday, as flames and smoke poured from the engine.
Air New Zealand reported no injuries and the plane, which was carrying 95 passengers and six crew, landed safely after diverting to Hamilton airport.
The airline said the crew noticed low oil pressure in the right-hand engine during the flight and shut it down as a precaution, with an inspection after landing confirming there was an oil leak.
''The engineers have found that oil did leak from the engine and will now transport it to our engineering facilities in Auckland, where it will be fully inspected over the next few days to determine the cause,'' it said.
Passenger Sarah Craven said it was a terrifying experience.
''There was a burst of flame and some smoke and then the whole plane shuddered,'' she told the Dominion Post newspaper. ''We plummeted left for about three seconds and then straightened up.
''Lots of people went 'Oh my God!' or yelped. A few people started crying. The poor guy in front of me had a panic attack and needed an oxygen mask.''
Fellow passenger Mike O'Donnell praised the pilot and crew for their calm response to the crisis and said authorities were well prepared when the plane landed in Hamilton.
''They had all the fire appliances out and there were paramedics on board and there were flashing lights,'' he told Radio New Zealand.
''They doused that part of the runway with water, just in case there was fire.''
In a separate incident, an Air New Zealand-owned 1900D Beech flying from Gisborne to Auckland on Sunday was forced to turn back a few minutes into the flight after the pilot noticed an engine was giving false power readings.
''The captain elected to shut down that engine as a precaution to prevent any possible damage to it and landed back at Gisborne,'' Air New Zealand said.
Filipino carriers disappointed over govt's 'Open Skies' policy
Manila Bulletin
By EMMIE V. ABADILLA
May 9, 2011, 3:54pm
MANILA, Philippines — Filipino carriers claimed their proposals on the 'Open Skies' policy have fallen on deaf ears after the Civil Aeronautics Board (CAB) issued the Implementing Rules and Regulations (IRR) of the 'Open Skies' Policy (EO 29) Sunday.
Cebu Air (CEB) expressed its disappointment over concerns on reciprocity right, the airline said in a statement. “The CAB adopted none of CEB’s proposed amendments that would have produced fair competition and enshrined reciprocity into the IRR,” CEB said.
Despite the lack of reciprocity in the IRR, CEB remains hopeful that the CAB will be faithful to its promise to revoke the air rights of foreign carriers with home countries that fail to give similar unlimited access to Philippine carriers to their skies.
“We strongly believe that the Philippine airspace is a valuable asset, and should be used to further the long-term interest of the nation through mutually beneficial air agreements,” according to CEB.
CEB can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights. This level playing field is vital for the continued viable existence of an airline which has invested billions of dollars in the Philippines, and employs thousands of Filipino workers and professionals, CEB said.
“With reciprocal 'Open Skies', CEB, as a homegrown Philippine flag carrier, will have the opportunity to offer its Filipino brand of service and trademark low fares to the Asia-Pacific region and the Overseas Filipino Workers employed in those countries. Sadly, the current IRR of EO 29 will deny that option,” CEB said.
However, “We assure the government of our continued cooperation and full support of their objectives to boost tourism in the Philippines,” the airline added.
By EMMIE V. ABADILLA
May 9, 2011, 3:54pm
MANILA, Philippines — Filipino carriers claimed their proposals on the 'Open Skies' policy have fallen on deaf ears after the Civil Aeronautics Board (CAB) issued the Implementing Rules and Regulations (IRR) of the 'Open Skies' Policy (EO 29) Sunday.
Cebu Air (CEB) expressed its disappointment over concerns on reciprocity right, the airline said in a statement. “The CAB adopted none of CEB’s proposed amendments that would have produced fair competition and enshrined reciprocity into the IRR,” CEB said.
Despite the lack of reciprocity in the IRR, CEB remains hopeful that the CAB will be faithful to its promise to revoke the air rights of foreign carriers with home countries that fail to give similar unlimited access to Philippine carriers to their skies.
“We strongly believe that the Philippine airspace is a valuable asset, and should be used to further the long-term interest of the nation through mutually beneficial air agreements,” according to CEB.
CEB can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights. This level playing field is vital for the continued viable existence of an airline which has invested billions of dollars in the Philippines, and employs thousands of Filipino workers and professionals, CEB said.
“With reciprocal 'Open Skies', CEB, as a homegrown Philippine flag carrier, will have the opportunity to offer its Filipino brand of service and trademark low fares to the Asia-Pacific region and the Overseas Filipino Workers employed in those countries. Sadly, the current IRR of EO 29 will deny that option,” CEB said.
However, “We assure the government of our continued cooperation and full support of their objectives to boost tourism in the Philippines,” the airline added.
CEB not happy with EO 29 implementing rules
Philippine Star
By Mary Ann LL. Reyes (The Philippine Star) Updated May 09, 2011 12:00 AM
MANILA, Philippines - Gokongwei-controlled Cebu Pacific (CEB) has expressed its “disappointment” over the rules and regulations issued by the Civil Aeronautics Board (CAB) to implement Executive Order 29 on the so-called open skies policy, after government failed to heed calls from local carriers for the IRR to ensure fair competition.
CEB said the CAB ignored proposals from various quarters to amend the proposed IRR to ensure fairness.
President Aquino last March issued twin executive orders that will implement open skies in the Philippines , eventually allowing foreign airlines to serve selected local routes. EO 28 creates the Philippine Air Negotiating Panel (PANP) and the Philippine Air Consultation Panel (PACP), while EO 29 authorizes the Civil Aeronautics Board (CAB) and the two panels to explore discussions with foreign carriers regarding the aviation liberalization policy commonly known as “open skies.”
“We are naturally disappointed with the approved EO 29 IRR, especially since we have expressed our concerns on reciprocity rights from the start. Regrettably, none of CEB’s proposed amendments that would have produced fair competition and enshrined reciprocity into the IRR were adopted by the CAB,” company officials said.
CEB maintained that the Philippine airspace is a valuable asset, and should be used to further the long-term interest of the nation through mutually beneficial air agreements.
It stressed that it can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights. “This level playing field is vital for the continued viable existence of an airline which has invested billions of dollars in the Philippines , and employs thousands of Filipino workers and professionals,” it said.
Officials said that with reciprocal open skies, CEB, as a homegrown Philippine flag carrier, will have the opportunity to offer its Filipino brand of service and trademark low fares to the Asia-Pacific region and the overseas Filipino workers (OFWs) employed in those countries. “Sadly, the current IRR of EO 29 will deny that option,” CEB emphasized.
The company however assured government of its continued cooperation, and full support of their objectives to boost tourism in the Philippines.
“Since the airline’s inception, CEB has been significantly contributing to the country’s tourism development. This is evident in CEB’s yearly passenger growth. Despite the lack of reciprocity in the IRR, CEB remains hopeful that the CAB will hold faithful to its promise that they will revoke the air rights of foreign carriers with home countries that fail to give similar unlimited access to Philippine carriers to their skies,” it added.
CEB has been pushing for a mutual and equal exchange of sovereign air rights between the Philippines and other countries so local carriers can compete with foreign airlines on a level playing field.
Philippine Airlines (PAL) for its part criticized the non-inclusion of representatives from local carriers in the Philippine Air Panel that will negotiate air service agreements. The carriers shall as observers, prior to any negotiation submit their position/requirements relative to the bilateral partner.
PAL president Jaime Bautista in an interview with The STAR questioned Rule 2.7 which “reserves to the Air Panel the right to amend, alter, or revise any position taken, prior to the bilateral talks, if it deems to be more in keeping with national interest.”
Bautista stressed that he does not see the point of all these considering that there are many available entitlements but not takers.
Meanwhile, CEB president Lance Gokongwei told The STAR that the provisions of Rule IV under the IRR (transformation of operating rights into traffic rights) tend to contradict each other.
By Mary Ann LL. Reyes (The Philippine Star) Updated May 09, 2011 12:00 AM
MANILA, Philippines - Gokongwei-controlled Cebu Pacific (CEB) has expressed its “disappointment” over the rules and regulations issued by the Civil Aeronautics Board (CAB) to implement Executive Order 29 on the so-called open skies policy, after government failed to heed calls from local carriers for the IRR to ensure fair competition.
CEB said the CAB ignored proposals from various quarters to amend the proposed IRR to ensure fairness.
President Aquino last March issued twin executive orders that will implement open skies in the Philippines , eventually allowing foreign airlines to serve selected local routes. EO 28 creates the Philippine Air Negotiating Panel (PANP) and the Philippine Air Consultation Panel (PACP), while EO 29 authorizes the Civil Aeronautics Board (CAB) and the two panels to explore discussions with foreign carriers regarding the aviation liberalization policy commonly known as “open skies.”
“We are naturally disappointed with the approved EO 29 IRR, especially since we have expressed our concerns on reciprocity rights from the start. Regrettably, none of CEB’s proposed amendments that would have produced fair competition and enshrined reciprocity into the IRR were adopted by the CAB,” company officials said.
CEB maintained that the Philippine airspace is a valuable asset, and should be used to further the long-term interest of the nation through mutually beneficial air agreements.
It stressed that it can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights. “This level playing field is vital for the continued viable existence of an airline which has invested billions of dollars in the Philippines , and employs thousands of Filipino workers and professionals,” it said.
Officials said that with reciprocal open skies, CEB, as a homegrown Philippine flag carrier, will have the opportunity to offer its Filipino brand of service and trademark low fares to the Asia-Pacific region and the overseas Filipino workers (OFWs) employed in those countries. “Sadly, the current IRR of EO 29 will deny that option,” CEB emphasized.
The company however assured government of its continued cooperation, and full support of their objectives to boost tourism in the Philippines.
“Since the airline’s inception, CEB has been significantly contributing to the country’s tourism development. This is evident in CEB’s yearly passenger growth. Despite the lack of reciprocity in the IRR, CEB remains hopeful that the CAB will hold faithful to its promise that they will revoke the air rights of foreign carriers with home countries that fail to give similar unlimited access to Philippine carriers to their skies,” it added.
CEB has been pushing for a mutual and equal exchange of sovereign air rights between the Philippines and other countries so local carriers can compete with foreign airlines on a level playing field.
Philippine Airlines (PAL) for its part criticized the non-inclusion of representatives from local carriers in the Philippine Air Panel that will negotiate air service agreements. The carriers shall as observers, prior to any negotiation submit their position/requirements relative to the bilateral partner.
PAL president Jaime Bautista in an interview with The STAR questioned Rule 2.7 which “reserves to the Air Panel the right to amend, alter, or revise any position taken, prior to the bilateral talks, if it deems to be more in keeping with national interest.”
Bautista stressed that he does not see the point of all these considering that there are many available entitlements but not takers.
Meanwhile, CEB president Lance Gokongwei told The STAR that the provisions of Rule IV under the IRR (transformation of operating rights into traffic rights) tend to contradict each other.
Aviation regulations disappoint Cebu Air
Manila Standard Today
by Jeremiah F. de Guzman
May 9, 2011
Budget carrier Cebu Pacific expressed disappointment over the final implementing rules and regulations of ‘pocket open skies’ policy, saying the government ignored its position on the issue.
The Civil Aeronautics Board on Friday issued the final rules on ‘pocket open skies’ without significant changes from the draft it presented to the local airlines, despite strong opposition on several provisions.
Cebu Pacific said it “is naturally disappointed with the approved executive order 29 IRR, especially since we have expressed our concerns on reciprocity right from the start.”
EO 29 authorized the Civil Aeronautics Board and the air panels to pursue the aviation liberalization policy more aggressively.
The policy, however, was specific in restricting cabotage rights and limiting them to domestic airlines. Cabotage is the right to transport passengers and goods between two or more points within the Philippines.
“Regrettably, none of Cebu Pacific’s proposed amendments that would have produced fair competition and enshrined reciprocity into the IRR were adopted by the CAB,” the airline owned by tycoon John Gokongwei said.
The CAB merely deleted a provision which stated that the Philippine government could revoke air rights of foreign airlines if the country of origin of the airlines was unable to grant the same right to Philippine carriers.
The board said national interest was the topmost priority instead of reciprocity pushed by local airlines.
by Jeremiah F. de Guzman
May 9, 2011
Budget carrier Cebu Pacific expressed disappointment over the final implementing rules and regulations of ‘pocket open skies’ policy, saying the government ignored its position on the issue.
The Civil Aeronautics Board on Friday issued the final rules on ‘pocket open skies’ without significant changes from the draft it presented to the local airlines, despite strong opposition on several provisions.
Cebu Pacific said it “is naturally disappointed with the approved executive order 29 IRR, especially since we have expressed our concerns on reciprocity right from the start.”
EO 29 authorized the Civil Aeronautics Board and the air panels to pursue the aviation liberalization policy more aggressively.
The policy, however, was specific in restricting cabotage rights and limiting them to domestic airlines. Cabotage is the right to transport passengers and goods between two or more points within the Philippines.
“Regrettably, none of Cebu Pacific’s proposed amendments that would have produced fair competition and enshrined reciprocity into the IRR were adopted by the CAB,” the airline owned by tycoon John Gokongwei said.
The CAB merely deleted a provision which stated that the Philippine government could revoke air rights of foreign airlines if the country of origin of the airlines was unable to grant the same right to Philippine carriers.
The board said national interest was the topmost priority instead of reciprocity pushed by local airlines.
Cebu Pacific disappointed with pocket open-sky rules
Business Mirror
Monday, 09 May 2011 10:19 Lenie Lectura / Reporter
LISTED airline Cebu Air Inc. expressed disappointment with the rules on open-sky policy that the government had issued on Friday, saying local airlines were left out.
Rival Philippine Airlines said it has yet to review the IRR.
In a statement, Cebu Air said none of its proposed amendments were included in the implementing rules and regulations.
“Cebu Pacific [CEB] is naturally disappointed with the approved EO [Executive Order] 29 IRR [implementing rules and regulations], especially since we have expressed our concerns on reciprocity right from the start. Regrettably, none of CEB’s proposed amendments that would have produced fair competition and enshrined reciprocity into the IRR were adopted by the CAB [Civil Aeronautics Board],” the airline said.
CEB pointed out that there should be reciprocity as it pushes for a mutual and equal exchange of sovereign air rights between the Philippines and other countries so local carriers can compete with foreign airlines on a level playing field.
“CEB can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights,” it said.
It pointed out that a level playing field is vital for the continued viable existence of an airline, which has invested billions of dollars in the Philippines, and employs thousands of Filipino workers and professionals.
“With reciprocal open skies, CEB, as a homegrown Philippine flag carrier, will have the opportunity to offer its Filipino brand of service and trademark low fares to the Asia-Pacific region and the overseas Filipino workers employed in those countries. Sadly, the current IRR of EO 29 will deny that option,” it added.
Third, fourth and fifth freedom rights were allowed under the approved IRR. These rights allow foreign airlines to mount flights to and from any airports in the country, except the already congested Ninoy Aquino International Airport (Naia), without restrictions on frequency, capacity and type of aircraft.
The CAB, which approved the rules, said it will make sure that local airlines will get fair treatment by taking back the air rights if there will be no reciprocity.
“Any grant of rights under EO 29, not being the result of a bilateral action, is essentially provisional and can be withdrawn if shown to cause actual and unfair competitive disadvantage to Philippine carriers,” the IRR said.
The CAB stressed that the order is meant to attract foreign airlines to operate to the country’s secondary gateways, which are largely underserved or totally unserved by airlines, foreign and local.
CEB stressed that despite the lack of reciprocity in the IRR, it remains hopeful that the CAB will be faithful to its promise that they will revoke the air rights of foreign carriers if they fail to give similar unlimited access to Philippine carriers to their skies.
“We strongly believe that the Philippine airspace is a valuable asset, and should be used to further the long-term interest of the nation through mutually beneficial air agreements,” it said.
Monday, 09 May 2011 10:19 Lenie Lectura / Reporter
LISTED airline Cebu Air Inc. expressed disappointment with the rules on open-sky policy that the government had issued on Friday, saying local airlines were left out.
Rival Philippine Airlines said it has yet to review the IRR.
In a statement, Cebu Air said none of its proposed amendments were included in the implementing rules and regulations.
“Cebu Pacific [CEB] is naturally disappointed with the approved EO [Executive Order] 29 IRR [implementing rules and regulations], especially since we have expressed our concerns on reciprocity right from the start. Regrettably, none of CEB’s proposed amendments that would have produced fair competition and enshrined reciprocity into the IRR were adopted by the CAB [Civil Aeronautics Board],” the airline said.
CEB pointed out that there should be reciprocity as it pushes for a mutual and equal exchange of sovereign air rights between the Philippines and other countries so local carriers can compete with foreign airlines on a level playing field.
“CEB can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights,” it said.
It pointed out that a level playing field is vital for the continued viable existence of an airline, which has invested billions of dollars in the Philippines, and employs thousands of Filipino workers and professionals.
“With reciprocal open skies, CEB, as a homegrown Philippine flag carrier, will have the opportunity to offer its Filipino brand of service and trademark low fares to the Asia-Pacific region and the overseas Filipino workers employed in those countries. Sadly, the current IRR of EO 29 will deny that option,” it added.
Third, fourth and fifth freedom rights were allowed under the approved IRR. These rights allow foreign airlines to mount flights to and from any airports in the country, except the already congested Ninoy Aquino International Airport (Naia), without restrictions on frequency, capacity and type of aircraft.
The CAB, which approved the rules, said it will make sure that local airlines will get fair treatment by taking back the air rights if there will be no reciprocity.
“Any grant of rights under EO 29, not being the result of a bilateral action, is essentially provisional and can be withdrawn if shown to cause actual and unfair competitive disadvantage to Philippine carriers,” the IRR said.
The CAB stressed that the order is meant to attract foreign airlines to operate to the country’s secondary gateways, which are largely underserved or totally unserved by airlines, foreign and local.
CEB stressed that despite the lack of reciprocity in the IRR, it remains hopeful that the CAB will be faithful to its promise that they will revoke the air rights of foreign carriers if they fail to give similar unlimited access to Philippine carriers to their skies.
“We strongly believe that the Philippine airspace is a valuable asset, and should be used to further the long-term interest of the nation through mutually beneficial air agreements,” it said.
Monday, May 9, 2011
Aviation regulations disappoint Cebu Air
May 9, 2011
Manila Standard today
by Jeremiah F. de Guzman
Budget carrier Cebu Pacific expressed disappointment over the final implementing rules and regulations of ‘pocket open skies’ policy, saying the government ignored its position on the issue.
The Civil Aeronautics Board on Friday issued the final rules on ‘pocket open skies’ without significant changes from the draft it presented to the local airlines, despite strong opposition on several provisions.
Cebu Pacific said it “is naturally disappointed with the approved executive order 29 IRR, especially since we have expressed our concerns on reciprocity right from the start.”
EO 29 authorized the Civil Aeronautics Board and the air panels to pursue the aviation liberalization policy more aggressively.
The policy, however, was specific in restricting cabotage rights and limiting them to domestic airlines. Cabotage is the right to transport passengers and goods between two or more points within the Philippines.
“Regrettably, none of Cebu Pacific’s proposed amendments that would have produced fair competition and enshrined reciprocity into the IRR were adopted by the CAB,” the airline owned by tycoon John Gokongwei said.
The CAB merely deleted a provision which stated that the Philippine government could revoke air rights of foreign airlines if the country of origin of the airlines was unable to grant the same right to Philippine carriers.
The board said national interest was the topmost priority instead of reciprocity pushed by local airlines.
Manila Standard today
by Jeremiah F. de Guzman
Budget carrier Cebu Pacific expressed disappointment over the final implementing rules and regulations of ‘pocket open skies’ policy, saying the government ignored its position on the issue.
The Civil Aeronautics Board on Friday issued the final rules on ‘pocket open skies’ without significant changes from the draft it presented to the local airlines, despite strong opposition on several provisions.
Cebu Pacific said it “is naturally disappointed with the approved executive order 29 IRR, especially since we have expressed our concerns on reciprocity right from the start.”
EO 29 authorized the Civil Aeronautics Board and the air panels to pursue the aviation liberalization policy more aggressively.
The policy, however, was specific in restricting cabotage rights and limiting them to domestic airlines. Cabotage is the right to transport passengers and goods between two or more points within the Philippines.
“Regrettably, none of Cebu Pacific’s proposed amendments that would have produced fair competition and enshrined reciprocity into the IRR were adopted by the CAB,” the airline owned by tycoon John Gokongwei said.
The CAB merely deleted a provision which stated that the Philippine government could revoke air rights of foreign airlines if the country of origin of the airlines was unable to grant the same right to Philippine carriers.
The board said national interest was the topmost priority instead of reciprocity pushed by local airlines.
PH airlines press reciprocity in ‘open skies’
By Paolo Montecillo
Philippine Daily Inquirer
First Posted 21:41:00 05/08/2011
MANILA, Philippines—Local airlines have criticized the government’s “open skies” policy, saying the disregard for reciprocity from other countries may jeopardize the growth of Philippine carriers.
The Civil Aeronautics Board (CAB) last week approved the final implementing rules of Executive Order No. 29—signed by President Aquino in March—which removed legal restrictions on the number of flights foreign airlines could mount to local cities outside Manila.
The government is hoping that the more liberalized rules would spur the growth of the country’s tourism sector—considered a pillar of the administration’s economic platform.
Budget carrier Cebu Pacific said in a statement issued on Friday that it was “disappointed” that the government did not heed its calls for rights given to foreign airlines to come with the condition that the same rights be granted to local carriers by other countries.
“We have expressed our concerns on reciprocity right from the start. Regrettably, none of our proposed amendments that would have produced fair competition and enshrined reciprocity into the implementing rules and regulations were adopted,” Cebu Pacific said.
In the final rules, under normal circumstances, the CAB will require that any air rights given to foreign airlines should also be given by foreign governments to local carriers.
However, the need for this would be waived if letting foreign airlines serve a particular route was in accordance with “national interest and mutual benefit.”
Cebu Pacific said this would be an unfair advantage for foreign airlines.
“We strongly believe that the Philippine airspace is a valuable asset and should be used to further the long-term interest of the nation through mutually beneficial air agreements,” the company said.
“We can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights. This level playing field is vital for [our] continued viable existence,” it added.
In a separate interview, Alfred Yao, chairman of Zest Airways, said the government should protect the rights of local airlines, which have invested billions of pesos and hired thousands of people to expand operations in the past few years.
“We welcome additional competition because it will grow the market for all airlines. But we should put everything on equal footing with foreign airlines,” Yao said. “We are giving out something that’s very precious. We should get something too.”
He said the additional competition from foreign airlines might hamper Zest’s own expansion plans. Earlier this year, the company announced plans to acquire two Boeing 777 aircraft, which are capable of long-haul flights to the Middle East, Europe or even the United States.
But leisure carrier Southeast Asian Airlines (SEAir) offered a different view, saying the local air travel market was big enough for all airlines—foreign and local.
“We have a population of close to 100 million, but only 15 million of us travel. In Australia, they have more sheep than people but their industry and their airlines are bigger than ours,” SEAir president Avelino Zapanta said.
He said giving foreign carriers access to the Philippines, especially to undeveloped routes, would help the air travel market grow, benefiting all airlines.
Philippine Daily Inquirer
First Posted 21:41:00 05/08/2011
MANILA, Philippines—Local airlines have criticized the government’s “open skies” policy, saying the disregard for reciprocity from other countries may jeopardize the growth of Philippine carriers.
The Civil Aeronautics Board (CAB) last week approved the final implementing rules of Executive Order No. 29—signed by President Aquino in March—which removed legal restrictions on the number of flights foreign airlines could mount to local cities outside Manila.
The government is hoping that the more liberalized rules would spur the growth of the country’s tourism sector—considered a pillar of the administration’s economic platform.
Budget carrier Cebu Pacific said in a statement issued on Friday that it was “disappointed” that the government did not heed its calls for rights given to foreign airlines to come with the condition that the same rights be granted to local carriers by other countries.
“We have expressed our concerns on reciprocity right from the start. Regrettably, none of our proposed amendments that would have produced fair competition and enshrined reciprocity into the implementing rules and regulations were adopted,” Cebu Pacific said.
In the final rules, under normal circumstances, the CAB will require that any air rights given to foreign airlines should also be given by foreign governments to local carriers.
However, the need for this would be waived if letting foreign airlines serve a particular route was in accordance with “national interest and mutual benefit.”
Cebu Pacific said this would be an unfair advantage for foreign airlines.
“We strongly believe that the Philippine airspace is a valuable asset and should be used to further the long-term interest of the nation through mutually beneficial air agreements,” the company said.
“We can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights. This level playing field is vital for [our] continued viable existence,” it added.
In a separate interview, Alfred Yao, chairman of Zest Airways, said the government should protect the rights of local airlines, which have invested billions of pesos and hired thousands of people to expand operations in the past few years.
“We welcome additional competition because it will grow the market for all airlines. But we should put everything on equal footing with foreign airlines,” Yao said. “We are giving out something that’s very precious. We should get something too.”
He said the additional competition from foreign airlines might hamper Zest’s own expansion plans. Earlier this year, the company announced plans to acquire two Boeing 777 aircraft, which are capable of long-haul flights to the Middle East, Europe or even the United States.
But leisure carrier Southeast Asian Airlines (SEAir) offered a different view, saying the local air travel market was big enough for all airlines—foreign and local.
“We have a population of close to 100 million, but only 15 million of us travel. In Australia, they have more sheep than people but their industry and their airlines are bigger than ours,” SEAir president Avelino Zapanta said.
He said giving foreign carriers access to the Philippines, especially to undeveloped routes, would help the air travel market grow, benefiting all airlines.
Japan woes to hit air travel sector
More Filipino travelers than foreign
By Paolo Montecillo
Philippine Daily Inquirer
First Posted 22:07:00 05/08/2011
MANILA, Philippines—The growth of the country’s international air travel sector may slow down this year as a result of the crisis caused by the earthquake in Japan—a major trading partner and the Philippines’ third-largest source of tourists.
A ranking industry official said the people of Japan will likely put off vacations or any unnecessary travel in the coming months as they were focusing on rebuilding after the magnitude 9 earthquake that caused a tsunami.
“The Japanese will have to spend their money to rebuild or help others that were affected by the calamity,” said Porvenir Porciuncula, deputy executive director of the Civil Aeronautics Board (CAB).
Last year, South Korea was the biggest source of tourists to the Philippines, contributing 740,622 visitors, data from the tourism department showed.
The United States came in second with 600,165, but Porciuncula said this was mostly due to returning Filipinos who had already been naturalized as American citizens.
There were about 358,744 tourists from Japan, making it the third-largest tourist market for the Philippines.
Luckily for the country, Porciuncula said the country’s travel sector was dominated mainly by Filipino travelers, not foreigners.
Last year, 3.3 million foreign tourists came to the Philippines. But CAB data based on airline reports showed that there were 14 million international passengers in the country last year, half coming in and half going out.
Porciuncula said the local air travel sector had shown resilience in recent years, posting growth despite travel advisories issued by several countries against the Philippines. The industry has also been able to weather different crises such as international disease outbreaks and the recent global recession.
Earlier this month, the International Air Transport Association said events in Japan had resulted in a 1-percent loss in international traffic in March, with the slowdown led by the Asia-Pacific region.
Asia-Pacific carriers saw a traffic loss of more than 2 percent; North American carriers, 1 percent; and Europe’s carriers, 0.5 percent.
By Paolo Montecillo
Philippine Daily Inquirer
First Posted 22:07:00 05/08/2011
MANILA, Philippines—The growth of the country’s international air travel sector may slow down this year as a result of the crisis caused by the earthquake in Japan—a major trading partner and the Philippines’ third-largest source of tourists.
A ranking industry official said the people of Japan will likely put off vacations or any unnecessary travel in the coming months as they were focusing on rebuilding after the magnitude 9 earthquake that caused a tsunami.
“The Japanese will have to spend their money to rebuild or help others that were affected by the calamity,” said Porvenir Porciuncula, deputy executive director of the Civil Aeronautics Board (CAB).
Last year, South Korea was the biggest source of tourists to the Philippines, contributing 740,622 visitors, data from the tourism department showed.
The United States came in second with 600,165, but Porciuncula said this was mostly due to returning Filipinos who had already been naturalized as American citizens.
There were about 358,744 tourists from Japan, making it the third-largest tourist market for the Philippines.
Luckily for the country, Porciuncula said the country’s travel sector was dominated mainly by Filipino travelers, not foreigners.
Last year, 3.3 million foreign tourists came to the Philippines. But CAB data based on airline reports showed that there were 14 million international passengers in the country last year, half coming in and half going out.
Porciuncula said the local air travel sector had shown resilience in recent years, posting growth despite travel advisories issued by several countries against the Philippines. The industry has also been able to weather different crises such as international disease outbreaks and the recent global recession.
Earlier this month, the International Air Transport Association said events in Japan had resulted in a 1-percent loss in international traffic in March, with the slowdown led by the Asia-Pacific region.
Asia-Pacific carriers saw a traffic loss of more than 2 percent; North American carriers, 1 percent; and Europe’s carriers, 0.5 percent.
Asia-Pacific airlines post $9.5-B net profits in 2010 in turnaround
Manila Bulletin
By EDU LOPEZ
May 8, 2011, 11:04pm
MANILA, Philippines — Asia Pacific-based carriers have reported a record US$9.5 billion in net profits in 2010, a major turnaround from US$1.7 billion in net losses suffered in 2009.
The Association of Asia Pacific Airlines (AAPA) said the strong results were underpinned by a resurgence of air travel and air freight demand, and operating efficiencies including record high load factors.
International passenger traffic, measured in revenue passenger kilometres, grew by 9.6% in 2010, whilst international cargo traffic, expressed in freight ton kilometres, surged by 24.0%.
Combined revenues for Asia Pacific carriers reached US$147 billion, 30% higher than the US$113 billion reported in 2009. Passenger revenues rose by 26% to US$106 billion whilst cargo revenues jumped 52% to US$22 billion.
Operating expenses increased by 18% to US$134 billion, mainly due to a 28% increase in fuel expenses to US$43 billion, the single biggest cost item.
The share of fuel expenditure as a percentage of total operating costs rose to 32% in 2010, from 29% the previous year, as oil prices rose 29% to an average of US$80 per barrel in 2010.
Non-fuel expenditures grew by 13% to US$91 billion, with overall staff costs rising 12%.
Andrew Herdman, AAPA Director General said: “Buoyed by a firm recovery in premium business travel and a very strong rebound in demand for air freight, Asia Pacific carriers saw a welcome return to profitability in 2010, after two years of heavy losses.
Asia Pacific airlines led the industry recovery, reporting combined net profits of US$9.5 billion, reflecting a 6.4% net margin, well above the industry average.
At the same time, the region’s carriers are taking on a more active role in international aviation policy debates which will shape the future development of the industry as a key driver of social and economic development.”
Looking ahead, Herdman expects the medium and long term prospects for Asia Pacific aviation remain very positive, but the immediate outlook is somewhat clouded by the sharp increase in oil prices this year, which may dampen the global economic recovery.
The lingering effects of the Japanese earthquake are also still evident, although there are some early signs of a recovery in demand for travel to and from Japan, Herdman added.
By EDU LOPEZ
May 8, 2011, 11:04pm
MANILA, Philippines — Asia Pacific-based carriers have reported a record US$9.5 billion in net profits in 2010, a major turnaround from US$1.7 billion in net losses suffered in 2009.
The Association of Asia Pacific Airlines (AAPA) said the strong results were underpinned by a resurgence of air travel and air freight demand, and operating efficiencies including record high load factors.
International passenger traffic, measured in revenue passenger kilometres, grew by 9.6% in 2010, whilst international cargo traffic, expressed in freight ton kilometres, surged by 24.0%.
Combined revenues for Asia Pacific carriers reached US$147 billion, 30% higher than the US$113 billion reported in 2009. Passenger revenues rose by 26% to US$106 billion whilst cargo revenues jumped 52% to US$22 billion.
Operating expenses increased by 18% to US$134 billion, mainly due to a 28% increase in fuel expenses to US$43 billion, the single biggest cost item.
The share of fuel expenditure as a percentage of total operating costs rose to 32% in 2010, from 29% the previous year, as oil prices rose 29% to an average of US$80 per barrel in 2010.
Non-fuel expenditures grew by 13% to US$91 billion, with overall staff costs rising 12%.
Andrew Herdman, AAPA Director General said: “Buoyed by a firm recovery in premium business travel and a very strong rebound in demand for air freight, Asia Pacific carriers saw a welcome return to profitability in 2010, after two years of heavy losses.
Asia Pacific airlines led the industry recovery, reporting combined net profits of US$9.5 billion, reflecting a 6.4% net margin, well above the industry average.
At the same time, the region’s carriers are taking on a more active role in international aviation policy debates which will shape the future development of the industry as a key driver of social and economic development.”
Looking ahead, Herdman expects the medium and long term prospects for Asia Pacific aviation remain very positive, but the immediate outlook is somewhat clouded by the sharp increase in oil prices this year, which may dampen the global economic recovery.
The lingering effects of the Japanese earthquake are also still evident, although there are some early signs of a recovery in demand for travel to and from Japan, Herdman added.
Gov’t urged to revoke foreign carriers’ air rights if open skies not reciprocated
Business World
Posted on May 08, 2011 10:25:05 PM
BUDGET CARRIER Cebu Pacific urged the government to revoke air rights of foreign carriers whose home countries fail to grant similar privileges to airlines based here even as the implementing rules of the “pocket open skies” policy do not bind state agencies to do so.
“Despite the lack of reciprocity in the implementing rules, [we] remain hopeful that the CAB (Civil Aeronautics Board) will hold faithful to its promise that they will revoke the air rights of foreign carriers with home countries that fail to give similar unlimited access to Philippine carriers to their skies,” Cebu Pacific said in a statement yesterday.
The CAB finalized last Friday the implementing rules of Executive Orders (EO) 28 and 29. A provision there states that CAB has the right to revoke, suspend or restrict any operations granted should no reciprocal air rights be granted to local carriers.
CAB Executive Director Carmelo L. Arcilla similarly told reporters last Friday that the Palace order also allows the CAB to withdraw air rights “if shown to cause actual and unfair competitive disadvantage to Philippine carriers.”
However, national interest -- tourism and its effects on the economy -- is stated in the rules to be the prevailing principle to be considered when such decisions on revoking air rights are mulled.
With EO 29’s implementing rules now finalized, the “pocket open skies” policy can take effect later this month if its publication in a newspaper is expedited.
EO 29, dated March 14, allows negotiators to offer foreign airlines third, fourth and fifth freedom rights, plus frequencies and capacities, to Philippine airports other than the Ninoy Aquino International Airport.
Waivers to frequencies/capacities under existing air services agreements will also be allowed.
The freedoms -- part of a set of commercial aviation rights also known as the nine “freedoms of the air” -- involve, in numerical order, the right to fly from one’s own country to another; fly from one country to one’s own; and fly between two foreign countries while the flight originates or ends in one’s own.
In no case should cabotage rights -- involving the transport of goods and passengers between two or more points within the Philippines (covered by the eighth and ninth freedoms) -- be granted to any foreign carrier, EO 29 states.
Cebu Pacific went on to say that it was “disappointed” with how the implementing rules turned out.
“Cebu Pacific is naturally disappointed with the approved [rules], especially since we have expressed our concerns on reciprocity right from the start,” it said.
“Cebu Pacific can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights ... We would, however, like to assure the government of our continued cooperation, and full support of their objectives to boost tourism,” it said.
Posted on May 08, 2011 10:25:05 PM
BUDGET CARRIER Cebu Pacific urged the government to revoke air rights of foreign carriers whose home countries fail to grant similar privileges to airlines based here even as the implementing rules of the “pocket open skies” policy do not bind state agencies to do so.
“Despite the lack of reciprocity in the implementing rules, [we] remain hopeful that the CAB (Civil Aeronautics Board) will hold faithful to its promise that they will revoke the air rights of foreign carriers with home countries that fail to give similar unlimited access to Philippine carriers to their skies,” Cebu Pacific said in a statement yesterday.
The CAB finalized last Friday the implementing rules of Executive Orders (EO) 28 and 29. A provision there states that CAB has the right to revoke, suspend or restrict any operations granted should no reciprocal air rights be granted to local carriers.
CAB Executive Director Carmelo L. Arcilla similarly told reporters last Friday that the Palace order also allows the CAB to withdraw air rights “if shown to cause actual and unfair competitive disadvantage to Philippine carriers.”
However, national interest -- tourism and its effects on the economy -- is stated in the rules to be the prevailing principle to be considered when such decisions on revoking air rights are mulled.
With EO 29’s implementing rules now finalized, the “pocket open skies” policy can take effect later this month if its publication in a newspaper is expedited.
EO 29, dated March 14, allows negotiators to offer foreign airlines third, fourth and fifth freedom rights, plus frequencies and capacities, to Philippine airports other than the Ninoy Aquino International Airport.
Waivers to frequencies/capacities under existing air services agreements will also be allowed.
The freedoms -- part of a set of commercial aviation rights also known as the nine “freedoms of the air” -- involve, in numerical order, the right to fly from one’s own country to another; fly from one country to one’s own; and fly between two foreign countries while the flight originates or ends in one’s own.
In no case should cabotage rights -- involving the transport of goods and passengers between two or more points within the Philippines (covered by the eighth and ninth freedoms) -- be granted to any foreign carrier, EO 29 states.
Cebu Pacific went on to say that it was “disappointed” with how the implementing rules turned out.
“Cebu Pacific is naturally disappointed with the approved [rules], especially since we have expressed our concerns on reciprocity right from the start,” it said.
“Cebu Pacific can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights ... We would, however, like to assure the government of our continued cooperation, and full support of their objectives to boost tourism,” it said.
Sunday, May 8, 2011
Japan woes to hit air travel sector
More Filipino travelers than foreign
By Paolo Montecillo
Philippine Daily Inquirer
First Posted 22:07:00 05/08/2011
MANILA, Philippines—The growth of the country’s international air travel sector may slow down this year as a result of the crisis caused by the earthquake in Japan—a major trading partner and the Philippines’ third-largest source of tourists.
A ranking industry official said the people of Japan will likely put off vacations or any unnecessary travel in the coming months as they were focusing on rebuilding after the magnitude 9 earthquake that caused a tsunami.
“The Japanese will have to spend their money to rebuild or help others that were affected by the calamity,” said Porvenir Porciuncula, deputy executive director of the Civil Aeronautics Board (CAB).
Last year, South Korea was the biggest source of tourists to the Philippines, contributing 740,622 visitors, data from the tourism department showed.
The United States came in second with 600,165, but Porciuncula said this was mostly due to returning Filipinos who had already been naturalized as American citizens.
There were about 358,744 tourists from Japan, making it the third-largest tourist market for the Philippines.
Luckily for the country, Porciuncula said the country’s travel sector was dominated mainly by Filipino travelers, not foreigners.
Last year, 3.3 million foreign tourists came to the Philippines. But CAB data based on airline reports showed that there were 14 million international passengers in the country last year, half coming in and half going out.
Porciuncula said the local air travel sector had shown resilience in recent years, posting growth despite travel advisories issued by several countries against the Philippines. The industry has also been able to weather different crises such as international disease outbreaks and the recent global recession.
Earlier this month, the International Air Transport Association said events in Japan had resulted in a 1-percent loss in international traffic in March, with the slowdown led by the Asia-Pacific region.
Asia-Pacific carriers saw a traffic loss of more than 2 percent; North American carriers, 1 percent; and Europe’s carriers, 0.5 percent.
By Paolo Montecillo
Philippine Daily Inquirer
First Posted 22:07:00 05/08/2011
MANILA, Philippines—The growth of the country’s international air travel sector may slow down this year as a result of the crisis caused by the earthquake in Japan—a major trading partner and the Philippines’ third-largest source of tourists.
A ranking industry official said the people of Japan will likely put off vacations or any unnecessary travel in the coming months as they were focusing on rebuilding after the magnitude 9 earthquake that caused a tsunami.
“The Japanese will have to spend their money to rebuild or help others that were affected by the calamity,” said Porvenir Porciuncula, deputy executive director of the Civil Aeronautics Board (CAB).
Last year, South Korea was the biggest source of tourists to the Philippines, contributing 740,622 visitors, data from the tourism department showed.
The United States came in second with 600,165, but Porciuncula said this was mostly due to returning Filipinos who had already been naturalized as American citizens.
There were about 358,744 tourists from Japan, making it the third-largest tourist market for the Philippines.
Luckily for the country, Porciuncula said the country’s travel sector was dominated mainly by Filipino travelers, not foreigners.
Last year, 3.3 million foreign tourists came to the Philippines. But CAB data based on airline reports showed that there were 14 million international passengers in the country last year, half coming in and half going out.
Porciuncula said the local air travel sector had shown resilience in recent years, posting growth despite travel advisories issued by several countries against the Philippines. The industry has also been able to weather different crises such as international disease outbreaks and the recent global recession.
Earlier this month, the International Air Transport Association said events in Japan had resulted in a 1-percent loss in international traffic in March, with the slowdown led by the Asia-Pacific region.
Asia-Pacific carriers saw a traffic loss of more than 2 percent; North American carriers, 1 percent; and Europe’s carriers, 0.5 percent.
PH airlines press reciprocity in ‘open skies’
By Paolo Montecillo
Philippine Daily Inquirer
First Posted 21:41:00 05/08/2011
MANILA, Philippines—Local airlines have criticized the government’s “open skies” policy, saying the disregard for reciprocity from other countries may jeopardize the growth of Philippine carriers.
The Civil Aeronautics Board (CAB) last week approved the final implementing rules of Executive Order No. 29—signed by President Aquino in March—which removed legal restrictions on the number of flights foreign airlines could mount to local cities outside Manila.
The government is hoping that the more liberalized rules would spur the growth of the country’s tourism sector—considered a pillar of the administration’s economic platform.
Budget carrier Cebu Pacific said in a statement issued on Friday that it was “disappointed” that the government did not heed its calls for rights given to foreign airlines to come with the condition that the same rights be granted to local carriers by other countries.
“We have expressed our concerns on reciprocity right from the start. Regrettably, none of our proposed amendments that would have produced fair competition and enshrined reciprocity into the implementing rules and regulations were adopted,” Cebu Pacific said.
In the final rules, under normal circumstances, the CAB will require that any air rights given to foreign airlines should also be given by foreign governments to local carriers.
However, the need for this would be waived if letting foreign airlines serve a particular route was in accordance with “national interest and mutual benefit.”
Cebu Pacific said this would be an unfair advantage for foreign airlines.
“We strongly believe that the Philippine airspace is a valuable asset and should be used to further the long-term interest of the nation through mutually beneficial air agreements,” the company said.
“We can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights. This level playing field is vital for [our] continued viable existence,” it added.
In a separate interview, Alfred Yao, chairman of Zest Airways, said the government should protect the rights of local airlines, which have invested billions of pesos and hired thousands of people to expand operations in the past few years.
“We welcome additional competition because it will grow the market for all airlines. But we should put everything on equal footing with foreign airlines,” Yao said. “We are giving out something that’s very precious. We should get something too.”
He said the additional competition from foreign airlines might hamper Zest’s own expansion plans. Earlier this year, the company announced plans to acquire two Boeing 777 aircraft, which are capable of long-haul flights to the Middle East, Europe or even the United States.
But leisure carrier Southeast Asian Airlines (SEAir) offered a different view, saying the local air travel market was big enough for all airlines—foreign and local.
“We have a population of close to 100 million, but only 15 million of us travel. In Australia, they have more sheep than people but their industry and their airlines are bigger than ours,” SEAir president Avelino Zapanta said.
He said giving foreign carriers access to the Philippines, especially to undeveloped routes, would help the air travel market grow, benefiting all airlines.
Philippine Daily Inquirer
First Posted 21:41:00 05/08/2011
MANILA, Philippines—Local airlines have criticized the government’s “open skies” policy, saying the disregard for reciprocity from other countries may jeopardize the growth of Philippine carriers.
The Civil Aeronautics Board (CAB) last week approved the final implementing rules of Executive Order No. 29—signed by President Aquino in March—which removed legal restrictions on the number of flights foreign airlines could mount to local cities outside Manila.
The government is hoping that the more liberalized rules would spur the growth of the country’s tourism sector—considered a pillar of the administration’s economic platform.
Budget carrier Cebu Pacific said in a statement issued on Friday that it was “disappointed” that the government did not heed its calls for rights given to foreign airlines to come with the condition that the same rights be granted to local carriers by other countries.
“We have expressed our concerns on reciprocity right from the start. Regrettably, none of our proposed amendments that would have produced fair competition and enshrined reciprocity into the implementing rules and regulations were adopted,” Cebu Pacific said.
In the final rules, under normal circumstances, the CAB will require that any air rights given to foreign airlines should also be given by foreign governments to local carriers.
However, the need for this would be waived if letting foreign airlines serve a particular route was in accordance with “national interest and mutual benefit.”
Cebu Pacific said this would be an unfair advantage for foreign airlines.
“We strongly believe that the Philippine airspace is a valuable asset and should be used to further the long-term interest of the nation through mutually beneficial air agreements,” the company said.
“We can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights. This level playing field is vital for [our] continued viable existence,” it added.
In a separate interview, Alfred Yao, chairman of Zest Airways, said the government should protect the rights of local airlines, which have invested billions of pesos and hired thousands of people to expand operations in the past few years.
“We welcome additional competition because it will grow the market for all airlines. But we should put everything on equal footing with foreign airlines,” Yao said. “We are giving out something that’s very precious. We should get something too.”
He said the additional competition from foreign airlines might hamper Zest’s own expansion plans. Earlier this year, the company announced plans to acquire two Boeing 777 aircraft, which are capable of long-haul flights to the Middle East, Europe or even the United States.
But leisure carrier Southeast Asian Airlines (SEAir) offered a different view, saying the local air travel market was big enough for all airlines—foreign and local.
“We have a population of close to 100 million, but only 15 million of us travel. In Australia, they have more sheep than people but their industry and their airlines are bigger than ours,” SEAir president Avelino Zapanta said.
He said giving foreign carriers access to the Philippines, especially to undeveloped routes, would help the air travel market grow, benefiting all airlines.
Gov’t urged to revoke foreign carriers’ air rights if open skies not reciprocated
Posted on May 08, 2011 10:25:05 PM
Business World
BUDGET CARRIER Cebu Pacific urged the government to revoke air rights of foreign carriers whose home countries fail to grant similar privileges to airlines based here even as the implementing rules of the “pocket open skies” policy do not bind state agencies to do so.
“Despite the lack of reciprocity in the implementing rules, [we] remain hopeful that the CAB (Civil Aeronautics Board) will hold faithful to its promise that they will revoke the air rights of foreign carriers with home countries that fail to give similar unlimited access to Philippine carriers to their skies,” Cebu Pacific said in a statement yesterday.
The CAB finalized last Friday the implementing rules of Executive Orders (EO) 28 and 29. A provision there states that CAB has the right to revoke, suspend or restrict any operations granted should no reciprocal air rights be granted to local carriers.
CAB Executive Director Carmelo L. Arcilla similarly told reporters last Friday that the Palace order also allows the CAB to withdraw air rights “if shown to cause actual and unfair competitive disadvantage to Philippine carriers.”
However, national interest -- tourism and its effects on the economy -- is stated in the rules to be the prevailing principle to be considered when such decisions on revoking air rights are mulled.
With EO 29’s implementing rules now finalized, the “pocket open skies” policy can take effect later this month if its publication in a newspaper is expedited.
EO 29, dated March 14, allows negotiators to offer foreign airlines third, fourth and fifth freedom rights, plus frequencies and capacities, to Philippine airports other than the Ninoy Aquino International Airport.
Waivers to frequencies/capacities under existing air services agreements will also be allowed.
The freedoms -- part of a set of commercial aviation rights also known as the nine “freedoms of the air” -- involve, in numerical order, the right to fly from one’s own country to another; fly from one country to one’s own; and fly between two foreign countries while the flight originates or ends in one’s own.
In no case should cabotage rights -- involving the transport of goods and passengers between two or more points within the Philippines (covered by the eighth and ninth freedoms) -- be granted to any foreign carrier, EO 29 states.
Cebu Pacific went on to say that it was “disappointed” with how the implementing rules turned out.
“Cebu Pacific is naturally disappointed with the approved [rules], especially since we have expressed our concerns on reciprocity right from the start,” it said.
“Cebu Pacific can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights ... We would, however, like to assure the government of our continued cooperation, and full support of their objectives to boost tourism,” it said.
Business World
BUDGET CARRIER Cebu Pacific urged the government to revoke air rights of foreign carriers whose home countries fail to grant similar privileges to airlines based here even as the implementing rules of the “pocket open skies” policy do not bind state agencies to do so.
“Despite the lack of reciprocity in the implementing rules, [we] remain hopeful that the CAB (Civil Aeronautics Board) will hold faithful to its promise that they will revoke the air rights of foreign carriers with home countries that fail to give similar unlimited access to Philippine carriers to their skies,” Cebu Pacific said in a statement yesterday.
The CAB finalized last Friday the implementing rules of Executive Orders (EO) 28 and 29. A provision there states that CAB has the right to revoke, suspend or restrict any operations granted should no reciprocal air rights be granted to local carriers.
CAB Executive Director Carmelo L. Arcilla similarly told reporters last Friday that the Palace order also allows the CAB to withdraw air rights “if shown to cause actual and unfair competitive disadvantage to Philippine carriers.”
However, national interest -- tourism and its effects on the economy -- is stated in the rules to be the prevailing principle to be considered when such decisions on revoking air rights are mulled.
With EO 29’s implementing rules now finalized, the “pocket open skies” policy can take effect later this month if its publication in a newspaper is expedited.
EO 29, dated March 14, allows negotiators to offer foreign airlines third, fourth and fifth freedom rights, plus frequencies and capacities, to Philippine airports other than the Ninoy Aquino International Airport.
Waivers to frequencies/capacities under existing air services agreements will also be allowed.
The freedoms -- part of a set of commercial aviation rights also known as the nine “freedoms of the air” -- involve, in numerical order, the right to fly from one’s own country to another; fly from one country to one’s own; and fly between two foreign countries while the flight originates or ends in one’s own.
In no case should cabotage rights -- involving the transport of goods and passengers between two or more points within the Philippines (covered by the eighth and ninth freedoms) -- be granted to any foreign carrier, EO 29 states.
Cebu Pacific went on to say that it was “disappointed” with how the implementing rules turned out.
“Cebu Pacific is naturally disappointed with the approved [rules], especially since we have expressed our concerns on reciprocity right from the start,” it said.
“Cebu Pacific can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights ... We would, however, like to assure the government of our continued cooperation, and full support of their objectives to boost tourism,” it said.
Thursday, May 5, 2011
Korean Air’s Q1 net profit climbs 50% on strong won
Manila Bulletin
May 5, 2011
SEOUL, May 4 (AFP)– South Korea's flag carrier Korean Air said its first-quarter net profit rose almost 50 percent from a year earlier as a stronger won helped cut the cost of repaying foreign-currency debts.
Net profit in the three months ended March 31 rose to 282.1 billion ($263 million) from 188.7 billion won a year earlier, the company said in a statement.
But operating profit fell 41 percent year-on-year to 162.9 billion won in the first quarter as higher oil prices pushed up expenses. Revenue was up 7.2 percent to 2.821 trillion won.
Fuel costs totalled 995 billion won, accounting for almost 39 percent of first-quarter operating expenses compared to 33.4 percent a year earlier.
''Jet fuel prices were so high that a strong won didn't absorb all of the impact resulting from high input costs, which hurt operating profit in the quarter,'' a company spokesman told Dow Jones Newswires.
Analysts forecast travel demand to Japan will remain weak in the second quarter following the March tsunami, but that it will be offset by seasonal demand on routes to China, Southeast Asia and the United States.
''As higher fuel costs will be reflected in fuel surcharges beginning the second quarter, it along with a strong won will help trim rising costs,'' said Yoo Deuk-Sang, an analyst at Dongbu Securities.
Korean Air has placed a firm order for Airbus airliners worth about 1.0 billion dollars (674 million euros) at catalogue prices, Airbus said on Tuesday.
May 5, 2011
SEOUL, May 4 (AFP)– South Korea's flag carrier Korean Air said its first-quarter net profit rose almost 50 percent from a year earlier as a stronger won helped cut the cost of repaying foreign-currency debts.
Net profit in the three months ended March 31 rose to 282.1 billion ($263 million) from 188.7 billion won a year earlier, the company said in a statement.
But operating profit fell 41 percent year-on-year to 162.9 billion won in the first quarter as higher oil prices pushed up expenses. Revenue was up 7.2 percent to 2.821 trillion won.
Fuel costs totalled 995 billion won, accounting for almost 39 percent of first-quarter operating expenses compared to 33.4 percent a year earlier.
''Jet fuel prices were so high that a strong won didn't absorb all of the impact resulting from high input costs, which hurt operating profit in the quarter,'' a company spokesman told Dow Jones Newswires.
Analysts forecast travel demand to Japan will remain weak in the second quarter following the March tsunami, but that it will be offset by seasonal demand on routes to China, Southeast Asia and the United States.
''As higher fuel costs will be reflected in fuel surcharges beginning the second quarter, it along with a strong won will help trim rising costs,'' said Yoo Deuk-Sang, an analyst at Dongbu Securities.
Korean Air has placed a firm order for Airbus airliners worth about 1.0 billion dollars (674 million euros) at catalogue prices, Airbus said on Tuesday.
Virgin rebrands Australia, Pacific operations
Manila Bulletin
May 5, 2011
SYDNEY, May 4 (AFP) – Sir Richard Branson Wednesday announced Virgin's airline operations in Australia and the Pacific were being rebranded as it attempts to grab more market share from Qantas.
Domestic carrier Virgin Blue and its international offshoots, Pacific Blue and V Australia, will all be known as Virgin Australia, with negotiations under way to bring Polynesia Blue under the same umbrella.
British entrepreneur and part owner Branson, who launched the new airline in Sydney with chief executive John Borghetti, said the move would allow Virgin to build one strong brand recognized globally.
As well as changing the name, Virgin has also dropped the bright red body paint from its aircraft in favor of a more conservative white.
Branson said the Virgin Australia brand represented a new chapter for the airline, which first started flying in Australia 11 years ago.
''I'm absolutely thrilled with the new look and feel of Virgin Australia's domestic product and I know it will shake up the Australian travel market on a larger scale than it did 10 years ago,'' he said.
Borghetti added that the brand consolidation was a pivotal point in the airline's history.
''Virgin Australia will be the airline of choice for all market segments,'' he said.
''We will do this by bringing the magic back to flying – providing a seamless experience, with excellent service that can be tailored to the individual.
''In re-positioning the airline we have kept all the great attributes for which Virgin Blue is renowned – the 'can-do' attitude, the competitive pricing and the genuine friendly service.''
Virgin Australia will operate domestically in Australia as of Wednesday, with V Australia and Pacific Blue operating under the name by year end.
Analysts said the move was part of a strategy to move Virgin, Australia's second-largest carrier, away from low-cost carriers such as Jetstar and Tiger Airways and towards Qantas in the full-service market.
May 5, 2011
SYDNEY, May 4 (AFP) – Sir Richard Branson Wednesday announced Virgin's airline operations in Australia and the Pacific were being rebranded as it attempts to grab more market share from Qantas.
Domestic carrier Virgin Blue and its international offshoots, Pacific Blue and V Australia, will all be known as Virgin Australia, with negotiations under way to bring Polynesia Blue under the same umbrella.
British entrepreneur and part owner Branson, who launched the new airline in Sydney with chief executive John Borghetti, said the move would allow Virgin to build one strong brand recognized globally.
As well as changing the name, Virgin has also dropped the bright red body paint from its aircraft in favor of a more conservative white.
Branson said the Virgin Australia brand represented a new chapter for the airline, which first started flying in Australia 11 years ago.
''I'm absolutely thrilled with the new look and feel of Virgin Australia's domestic product and I know it will shake up the Australian travel market on a larger scale than it did 10 years ago,'' he said.
Borghetti added that the brand consolidation was a pivotal point in the airline's history.
''Virgin Australia will be the airline of choice for all market segments,'' he said.
''We will do this by bringing the magic back to flying – providing a seamless experience, with excellent service that can be tailored to the individual.
''In re-positioning the airline we have kept all the great attributes for which Virgin Blue is renowned – the 'can-do' attitude, the competitive pricing and the genuine friendly service.''
Virgin Australia will operate domestically in Australia as of Wednesday, with V Australia and Pacific Blue operating under the name by year end.
Analysts said the move was part of a strategy to move Virgin, Australia's second-largest carrier, away from low-cost carriers such as Jetstar and Tiger Airways and towards Qantas in the full-service market.
Disaster in Japan, war in Africa shrink travel in March
Manila Bulletin
May 5, 2011
By EMMIE V. ABADILLA
MANILA, Philippines — Japan’s earthquake and tsunami plus political strife in the Middle East and North Africa (MENA) brought down global passenger demand 2 percent year-on-year, from 5.8% in February to 3.8% in March, the International Air Transport Association (IATA) reported.
Conversely, year-on-year growth in freight markets rebounded from 1.8% to 3.7% in the same period. Overall, global passenger demand fell 0.3% in March, while cargo demand expanded 4.5%.
The impact of the events in Japan on global international traffic was a 1% loss of traffic in March, confirmed Giovanni Bisignani, IATA’s Director General and CEO.
Asia-Pacific carriers experienced over 2% traffic loss, North American carriers had a 1% drop and Europe’s carriers a 0.5% fall. Japan’s domestic market was most severely affected, with a 22% fall in demand.
On the other hand, political unrest in MENA cut international travel by 0.9 percentage points. Egypt and Tunisia experienced traffic levels 10-25% below normal for March. Military action in Libya virtually stopped civil aviation to, from and within that country.
Capacity adjustments lagged behind the sudden drop in demand. Against global demand growth of 3.8%, capacity expanded by 8.6%. The average load factor fell by 3.5 percentage points to 74.6%.
Except for Japan, long-haul business travel remained strong but weak economic prospects continue to dampen intra-European traffic.
Still, compared to the previous year, Asia-Pacific carriers experienced flat passenger demand. Compared to February however demand contracted by 2.2% while 0.8% was added to capacity. This led to a sharp 2.3 percentage point fall in load factors to 74.2% in March.
Middle East carriers saw year-on-year demand growth fall from 8.3% in February to 5.6% in March. Compared to February, demand inched up 0.1% while capacity expanded by 0.8%. This pushed the load factor down 0.6 percentage points to 73.2%.
Europe’s carriers saw demand levels of 5.3% above March 2010, down from the 7.4% year-on-year growth in February. Compared to February levels, Europe’s carriers added 0.5% to capacity but experienced zero demand growth.
This pushed load factors down by 0.3 percentage points to 75.3%.
North American carriers saw a 3.7% year-on-year improvement in demand in March. This was a 3 percentage point tumble from the 6.7% growth recorded in February. Compared to February levels, demand dropped 0.9% while capacity was up 0.3%. This led to a 0.9 percentage point drop in load factors from their February levels to 76.9%.
May 5, 2011
By EMMIE V. ABADILLA
MANILA, Philippines — Japan’s earthquake and tsunami plus political strife in the Middle East and North Africa (MENA) brought down global passenger demand 2 percent year-on-year, from 5.8% in February to 3.8% in March, the International Air Transport Association (IATA) reported.
Conversely, year-on-year growth in freight markets rebounded from 1.8% to 3.7% in the same period. Overall, global passenger demand fell 0.3% in March, while cargo demand expanded 4.5%.
The impact of the events in Japan on global international traffic was a 1% loss of traffic in March, confirmed Giovanni Bisignani, IATA’s Director General and CEO.
Asia-Pacific carriers experienced over 2% traffic loss, North American carriers had a 1% drop and Europe’s carriers a 0.5% fall. Japan’s domestic market was most severely affected, with a 22% fall in demand.
On the other hand, political unrest in MENA cut international travel by 0.9 percentage points. Egypt and Tunisia experienced traffic levels 10-25% below normal for March. Military action in Libya virtually stopped civil aviation to, from and within that country.
Capacity adjustments lagged behind the sudden drop in demand. Against global demand growth of 3.8%, capacity expanded by 8.6%. The average load factor fell by 3.5 percentage points to 74.6%.
Except for Japan, long-haul business travel remained strong but weak economic prospects continue to dampen intra-European traffic.
Still, compared to the previous year, Asia-Pacific carriers experienced flat passenger demand. Compared to February however demand contracted by 2.2% while 0.8% was added to capacity. This led to a sharp 2.3 percentage point fall in load factors to 74.2% in March.
Middle East carriers saw year-on-year demand growth fall from 8.3% in February to 5.6% in March. Compared to February, demand inched up 0.1% while capacity expanded by 0.8%. This pushed the load factor down 0.6 percentage points to 73.2%.
Europe’s carriers saw demand levels of 5.3% above March 2010, down from the 7.4% year-on-year growth in February. Compared to February levels, Europe’s carriers added 0.5% to capacity but experienced zero demand growth.
This pushed load factors down by 0.3 percentage points to 75.3%.
North American carriers saw a 3.7% year-on-year improvement in demand in March. This was a 3 percentage point tumble from the 6.7% growth recorded in February. Compared to February levels, demand dropped 0.9% while capacity was up 0.3%. This led to a 0.9 percentage point drop in load factors from their February levels to 76.9%.
Benefits of ‘open skies’ policy weighed
BY KATHLEEN A. MARTIN, Reporter
Business World
May 4, 2011
A FLIGHT from Kuala Lumpur to either Manila or Colombo covers roughly the same distance, but Malaysia Airlines -- which flies both routes -- charges 105% more to fly to the Philippine capital, according to its Web site.
While many factors cause this price gap, it is notable that Malaysian airlines enjoy a more open market in Sri Lanka via its expanded Air Services Agreement established in 2005.
The Aquino administration, which has pushed for opening up Philippine skies through Executive Orders (EOs) 28 and 29, has pointed out that the country needs similar liberalization, albeit via blanket policy, to attract more competing airlines and thus lower fares.
"The [pocket-open skies policy] was issued because of tourism...Tourism will have its effects on job creation and investments in the provinces...Airfares and freight cost may go down further too," Tourism Secretary Alberto A. Lim said in a telephone interview ahead of expected release of implementing rules of the two EOs this week.
The draft rules issued April 6 lay down the implementation guidelines for the EOs, including granting "fifth freedom" to foreign carriers.
This allows foreign carriers to make stopovers abroad before finally touching down on any Philippine airport, except Ninoy Aquino International Airport.
For instance, carriers seeking to transport passengers from Hong Kong to Cebu are now allowed to make a stop in Macau first, thus enabling them to gather more travelers.
The scheme is designed to make more routes, particularly those with limited passengers, become more economical to operate.
Tourists already increasing
Former president Gloria M. Arroyo, now congressional representative of the second district of Pampanga, had attempted to grant this fifth freedom to carriers traveling to and from the Diosdado Macapagal International Airport (DMIA) in Clark and the Subic Bay International Airport in 2006 under Executive Order 500.
But before the local aviation authority could implement this, Ms. Arroyo, in August of the same year, amended the order through EO 500-A to rescind this fifth freedom.
All that was granted was the third and fourth freedoms which allowed direct flights to and from Clark and Subic, without restrictions or limitations on capacity and type of aircraft.
Even with such limited liberalization, the areas served by the covered airports enjoyed increases in tourist arrivals, Mr. Lim said.
"It has certainly boosted tourism in Clark and in Subic. In Clark alone, tourist arrival at the DMIA [increased] from around 10,000 in 2003 to about 600,000 last year," Mr. Lim said.
"That’s not even counting how many jobs were made available due to businesses that opened as a result of that boost," he said.
The Aquino administration seeks to repeat this impact on a greater scale.
"We will be opening the country’s secondary gateways and boost economic activity in the provinces. That’s what we’re banking on with these EOs," Porvenir P. Porciuncula, Civil Aeronautics Board deputy director, said in a separate telephone interview.
Mr. Lim said "the Aquino government’s target is to double international arrivals by 2016 and we cannot do that with current frequencies."
The government aims to welcome as many as six million tourists in 2016, Mr. Lim said, from three million in 2009 and around 3.5 million in 2010.
In the meantime, the Philippines has lagged behind neighbors in the region in terms of attracting tourists.
According to the Association of South East Asian Nations Web site, the number of foreign visitors to member countries reached 65 million in 2009.
News reports said that, of this number, Malaysia had the most foreign visitors, followed by Thailand, Singapore, Indonesia, Vietnam, Philippines, Cambodia, Laos, Myanmar and Brunei.
"We also should note how this would be beneficial to our overseas Filipino workers. They will now have more choices going to and from the [Philippines] to where they work," Mr. Lim added.
Cautious
Local carriers, however, have cautioned that this thrust shouldn’t be pursued without asking other governments to grant similar access in exchange.
Otherwise, foreign carriers including AirAsia Philippines, Inc., will stand to benefit more from the measure, local airline operators said.
AirAsia Philippines, led by Mr. Aquino’s cousin Antonio "Tonyboy" Cojuangco, Jr., formally announced its expansion plans in the country nearly six months after the change in the country’s presidency.
The draft implementing rules even go as far as to remove local carriers from the panel in charge of negotiating air access rights with other countries.
The country’s official air carriers, which had been members of the two panels under EO 219 issued in 1995, will now merely "participate in the proceedings as observers" under the new EOs.
"Our stand remains the same. We support an open skies policy that adheres to the principle of reciprocity [in air rights]," Philippine Airlines (PAL) spokesperson Cielo C. Villaluna said in a telephone interview.
"PAL has always maintained that, in all negotiations, all stakeholders must be consulted to come up with what is in the best interest of all concerned," Ms. Villaluna said.
Candice A. Iyog, Cebu Air vice-president for marketing and distribution, echoed this view.
"The airline has been consistent in its support for the EO. All we want is to be given the chance to compete through reciprocity in air rights," Ms. Iyog said in a separate telephone interview.
Another local carrier, South East Asian Airlines, Inc. (Seair), voiced the same concern.
"We support the pocket-open skies policy. But, also in support of our colleagues in the industry, the government should consider adding a provision in the implementing rules and regulations: application of foreign carriers should be accompanied with an endorsement of their own governments that they are willing to grant the same rights to any Philippine carrier," Avelino L. Zapanta, Seair president and chief executive officer, said in a telephone interview.
Win-win arrangement?
The government, for its part, has argued that local carriers will also reap gains from the measure when tourist numbers rise as they will maintain their exclusive rights to shuttle passengers within the country.
This, as EO 29 expressly prohibits surrendering "cabotage rights" -- the authority to the transport of goods and passengers between two or more points within the Philippines -- to foreign carriers.
"We will never allow cabotage rights to be granted to foreign airlines. So, for example, tourists brought in Iloilo who want to travel to Manila will be taking a flight through local carriers," Mr. Porciuncula said.
The Joint Foreign Chambers, meanwhile, have said that work to attract more carriers and thus boost tourism should not stop short at just liberalizing the air space.
Taxes that discriminate against foreign carriers, should also be addressed, the group had said in earlier statements.
This issue, however, has been entrusted to legislators to address through amendments in tax laws.
In the meantime, foreign carriers will soon be allowed to apply for new landing entitlements soon after the implementing rules for EOs 28 and 29 are published.
"We are considering economic gains, further development of secondary gateways, tourism, and a lot more. We are trying to look at the long-term benefits of the country here," Mr. Porciuncula said.
Business World
May 4, 2011
A FLIGHT from Kuala Lumpur to either Manila or Colombo covers roughly the same distance, but Malaysia Airlines -- which flies both routes -- charges 105% more to fly to the Philippine capital, according to its Web site.
While many factors cause this price gap, it is notable that Malaysian airlines enjoy a more open market in Sri Lanka via its expanded Air Services Agreement established in 2005.
The Aquino administration, which has pushed for opening up Philippine skies through Executive Orders (EOs) 28 and 29, has pointed out that the country needs similar liberalization, albeit via blanket policy, to attract more competing airlines and thus lower fares.
"The [pocket-open skies policy] was issued because of tourism...Tourism will have its effects on job creation and investments in the provinces...Airfares and freight cost may go down further too," Tourism Secretary Alberto A. Lim said in a telephone interview ahead of expected release of implementing rules of the two EOs this week.
The draft rules issued April 6 lay down the implementation guidelines for the EOs, including granting "fifth freedom" to foreign carriers.
This allows foreign carriers to make stopovers abroad before finally touching down on any Philippine airport, except Ninoy Aquino International Airport.
For instance, carriers seeking to transport passengers from Hong Kong to Cebu are now allowed to make a stop in Macau first, thus enabling them to gather more travelers.
The scheme is designed to make more routes, particularly those with limited passengers, become more economical to operate.
Tourists already increasing
Former president Gloria M. Arroyo, now congressional representative of the second district of Pampanga, had attempted to grant this fifth freedom to carriers traveling to and from the Diosdado Macapagal International Airport (DMIA) in Clark and the Subic Bay International Airport in 2006 under Executive Order 500.
But before the local aviation authority could implement this, Ms. Arroyo, in August of the same year, amended the order through EO 500-A to rescind this fifth freedom.
All that was granted was the third and fourth freedoms which allowed direct flights to and from Clark and Subic, without restrictions or limitations on capacity and type of aircraft.
Even with such limited liberalization, the areas served by the covered airports enjoyed increases in tourist arrivals, Mr. Lim said.
"It has certainly boosted tourism in Clark and in Subic. In Clark alone, tourist arrival at the DMIA [increased] from around 10,000 in 2003 to about 600,000 last year," Mr. Lim said.
"That’s not even counting how many jobs were made available due to businesses that opened as a result of that boost," he said.
The Aquino administration seeks to repeat this impact on a greater scale.
"We will be opening the country’s secondary gateways and boost economic activity in the provinces. That’s what we’re banking on with these EOs," Porvenir P. Porciuncula, Civil Aeronautics Board deputy director, said in a separate telephone interview.
Mr. Lim said "the Aquino government’s target is to double international arrivals by 2016 and we cannot do that with current frequencies."
The government aims to welcome as many as six million tourists in 2016, Mr. Lim said, from three million in 2009 and around 3.5 million in 2010.
In the meantime, the Philippines has lagged behind neighbors in the region in terms of attracting tourists.
According to the Association of South East Asian Nations Web site, the number of foreign visitors to member countries reached 65 million in 2009.
News reports said that, of this number, Malaysia had the most foreign visitors, followed by Thailand, Singapore, Indonesia, Vietnam, Philippines, Cambodia, Laos, Myanmar and Brunei.
"We also should note how this would be beneficial to our overseas Filipino workers. They will now have more choices going to and from the [Philippines] to where they work," Mr. Lim added.
Cautious
Local carriers, however, have cautioned that this thrust shouldn’t be pursued without asking other governments to grant similar access in exchange.
Otherwise, foreign carriers including AirAsia Philippines, Inc., will stand to benefit more from the measure, local airline operators said.
AirAsia Philippines, led by Mr. Aquino’s cousin Antonio "Tonyboy" Cojuangco, Jr., formally announced its expansion plans in the country nearly six months after the change in the country’s presidency.
The draft implementing rules even go as far as to remove local carriers from the panel in charge of negotiating air access rights with other countries.
The country’s official air carriers, which had been members of the two panels under EO 219 issued in 1995, will now merely "participate in the proceedings as observers" under the new EOs.
"Our stand remains the same. We support an open skies policy that adheres to the principle of reciprocity [in air rights]," Philippine Airlines (PAL) spokesperson Cielo C. Villaluna said in a telephone interview.
"PAL has always maintained that, in all negotiations, all stakeholders must be consulted to come up with what is in the best interest of all concerned," Ms. Villaluna said.
Candice A. Iyog, Cebu Air vice-president for marketing and distribution, echoed this view.
"The airline has been consistent in its support for the EO. All we want is to be given the chance to compete through reciprocity in air rights," Ms. Iyog said in a separate telephone interview.
Another local carrier, South East Asian Airlines, Inc. (Seair), voiced the same concern.
"We support the pocket-open skies policy. But, also in support of our colleagues in the industry, the government should consider adding a provision in the implementing rules and regulations: application of foreign carriers should be accompanied with an endorsement of their own governments that they are willing to grant the same rights to any Philippine carrier," Avelino L. Zapanta, Seair president and chief executive officer, said in a telephone interview.
Win-win arrangement?
The government, for its part, has argued that local carriers will also reap gains from the measure when tourist numbers rise as they will maintain their exclusive rights to shuttle passengers within the country.
This, as EO 29 expressly prohibits surrendering "cabotage rights" -- the authority to the transport of goods and passengers between two or more points within the Philippines -- to foreign carriers.
"We will never allow cabotage rights to be granted to foreign airlines. So, for example, tourists brought in Iloilo who want to travel to Manila will be taking a flight through local carriers," Mr. Porciuncula said.
The Joint Foreign Chambers, meanwhile, have said that work to attract more carriers and thus boost tourism should not stop short at just liberalizing the air space.
Taxes that discriminate against foreign carriers, should also be addressed, the group had said in earlier statements.
This issue, however, has been entrusted to legislators to address through amendments in tax laws.
In the meantime, foreign carriers will soon be allowed to apply for new landing entitlements soon after the implementing rules for EOs 28 and 29 are published.
"We are considering economic gains, further development of secondary gateways, tourism, and a lot more. We are trying to look at the long-term benefits of the country here," Mr. Porciuncula said.
Pilot shortage imperils airline sector
Wednesday, 04 May 2011 21:11 Recto Mercene / Reporter
Business Mirror
An aviation expert on Wednesday warned the government that the continuing flight of experienced Filipino pilots and airline technical personnel from the country might result in a shortage of aircraft captains in the country.
Former Philippine Airlines (PAL) pilot, Capt. Benhur Gomez, a founder of Omi Aviation, one of the country’s prestigious flying schools, made the warning.
“All major airlines are now competing against each other for services of good aircraft captains, and the Philippines is greatly affected by it because our pilots are lured by huge salaries being offered abroad,” Gomez said.?
Some international airlines, he said, are offering salaries of as much as $16,000 a month (P752,000) for Airbus A320 captains, and $18,000 (P846,000) to $20,000 (P940,000) for Boeing 747 captains.
Omni Aviation in Clark, Pampanga, hosts PAL’s pilot school.??
“The shortage of aircraft captains is also being worsened by the booming airline industry in the country, especially now that there are emerging budget airlines,” Gomez added.
He said that to be an aircraft captain of an international airline, a pilot or first officer must have at least three years’ flying experience, or ?the equivalent to 3,000 flying hours.??
This shortage of captains could result in delay in flights and, much worse, in scarcity of flights.??
Despite the situation, Gomez is encouraging students and professionals who want to have a career shift, to look at this opportunity to have a good-paying job.??
“Schooling is expensive, but once you are employed in the airline industry, in two years you would recover your investment because of the high salary,” he said partly in Filipino.??
Gomez called on the government to help resolve the situation by intensifying its crackdown on “fly-by-night” flying schools so as not to compromise the safety and quality of future Filipino pilots.
There are currently about 52 flying schools in the country.??
“There should be a renewed effort from the government’s regulatory body to go after these illegal flying schools,” Gomez added.??
He said these schools pad the flying time of?their “students” to enable them to get their pilot’s license faster. “The cheating is so blatant that some students log flying time even if they are not flying,” Gomez said.??
Training student pilots is very important because it helps them make the right decisions, especially during emergency situations, he said. “If the system fails, the judgment of an experienced pilot comes to play.”??
He said if the operations of these illegal schools continue, the integrity of Filipino pilots, who are known for their expertise worldwide, would be greatly affected.??
“The best the government could do is to assist and encourage legitimate flying schools to produce enough copilots who could be developed as captains in two to three years,” Gomez said.?
Business Mirror
An aviation expert on Wednesday warned the government that the continuing flight of experienced Filipino pilots and airline technical personnel from the country might result in a shortage of aircraft captains in the country.
Former Philippine Airlines (PAL) pilot, Capt. Benhur Gomez, a founder of Omi Aviation, one of the country’s prestigious flying schools, made the warning.
“All major airlines are now competing against each other for services of good aircraft captains, and the Philippines is greatly affected by it because our pilots are lured by huge salaries being offered abroad,” Gomez said.?
Some international airlines, he said, are offering salaries of as much as $16,000 a month (P752,000) for Airbus A320 captains, and $18,000 (P846,000) to $20,000 (P940,000) for Boeing 747 captains.
Omni Aviation in Clark, Pampanga, hosts PAL’s pilot school.??
“The shortage of aircraft captains is also being worsened by the booming airline industry in the country, especially now that there are emerging budget airlines,” Gomez added.
He said that to be an aircraft captain of an international airline, a pilot or first officer must have at least three years’ flying experience, or ?the equivalent to 3,000 flying hours.??
This shortage of captains could result in delay in flights and, much worse, in scarcity of flights.??
Despite the situation, Gomez is encouraging students and professionals who want to have a career shift, to look at this opportunity to have a good-paying job.??
“Schooling is expensive, but once you are employed in the airline industry, in two years you would recover your investment because of the high salary,” he said partly in Filipino.??
Gomez called on the government to help resolve the situation by intensifying its crackdown on “fly-by-night” flying schools so as not to compromise the safety and quality of future Filipino pilots.
There are currently about 52 flying schools in the country.??
“There should be a renewed effort from the government’s regulatory body to go after these illegal flying schools,” Gomez added.??
He said these schools pad the flying time of?their “students” to enable them to get their pilot’s license faster. “The cheating is so blatant that some students log flying time even if they are not flying,” Gomez said.??
Training student pilots is very important because it helps them make the right decisions, especially during emergency situations, he said. “If the system fails, the judgment of an experienced pilot comes to play.”??
He said if the operations of these illegal schools continue, the integrity of Filipino pilots, who are known for their expertise worldwide, would be greatly affected.??
“The best the government could do is to assist and encourage legitimate flying schools to produce enough copilots who could be developed as captains in two to three years,” Gomez said.?
Wednesday, May 4, 2011
Benefits of ‘open skies’ policy weighed
Business Mirror
May 4, 2011
BY KATHLEEN A. MARTIN, Reporter
A FLIGHT from Kuala Lumpur to either Manila or Colombo covers roughly the same distance, but Malaysia Airlines -- which flies both routes -- charges 105% more to fly to the Philippine capital, according to its Web site.
While many factors cause this price gap, it is notable that Malaysian airlines enjoy a more open market in Sri Lanka via its expanded Air Services Agreement established in 2005.
The Aquino administration, which has pushed for opening up Philippine skies through Executive Orders (EOs) 28 and 29, has pointed out that the country needs similar liberalization, albeit via blanket policy, to attract more competing airlines and thus lower fares.
"The [pocket-open skies policy] was issued because of tourism...Tourism will have its effects on job creation and investments in the provinces...Airfares and freight cost may go down further too," Tourism Secretary Alberto A. Lim said in a telephone interview ahead of expected release of implementing rules of the two EOs this week.
The draft rules issued April 6 lay down the implementation guidelines for the EOs, including granting "fifth freedom" to foreign carriers.
This allows foreign carriers to make stopovers abroad before finally touching down on any Philippine airport, except Ninoy Aquino International Airport.
For instance, carriers seeking to transport passengers from Hong Kong to Cebu are now allowed to make a stop in Macau first, thus enabling them to gather more travelers.
The scheme is designed to make more routes, particularly those with limited passengers, become more economical to operate.
Tourists already increasing
Former president Gloria M. Arroyo, now congressional representative of the second district of Pampanga, had attempted to grant this fifth freedom to carriers traveling to and from the Diosdado Macapagal International Airport (DMIA) in Clark and the Subic Bay International Airport in 2006 under Executive Order 500.
But before the local aviation authority could implement this, Ms. Arroyo, in August of the same year, amended the order through EO 500-A to rescind this fifth freedom.
All that was granted was the third and fourth freedoms which allowed direct flights to and from Clark and Subic, without restrictions or limitations on capacity and type of aircraft.
Even with such limited liberalization, the areas served by the covered airports enjoyed increases in tourist arrivals, Mr. Lim said.
"It has certainly boosted tourism in Clark and in Subic. In Clark alone, tourist arrival at the DMIA [increased] from around 10,000 in 2003 to about 600,000 last year," Mr. Lim said.
"That’s not even counting how many jobs were made available due to businesses that opened as a result of that boost," he said.
The Aquino administration seeks to repeat this impact on a greater scale.
"We will be opening the country’s secondary gateways and boost economic activity in the provinces. That’s what we’re banking on with these EOs," Porvenir P. Porciuncula, Civil Aeronautics Board deputy director, said in a separate telephone interview.
Mr. Lim said "the Aquino government’s target is to double international arrivals by 2016 and we cannot do that with current frequencies."
The government aims to welcome as many as six million tourists in 2016, Mr. Lim said, from three million in 2009 and around 3.5 million in 2010.
In the meantime, the Philippines has lagged behind neighbors in the region in terms of attracting tourists.
According to the Association of South East Asian Nations Web site, the number of foreign visitors to member countries reached 65 million in 2009.
News reports said that, of this number, Malaysia had the most foreign visitors, followed by Thailand, Singapore, Indonesia, Vietnam, Philippines, Cambodia, Laos, Myanmar and Brunei.
"We also should note how this would be beneficial to our overseas Filipino workers. They will now have more choices going to and from the [Philippines] to where they work," Mr. Lim added.
Cautious
Local carriers, however, have cautioned that this thrust shouldn’t be pursued without asking other governments to grant similar access in exchange.
Otherwise, foreign carriers including AirAsia Philippines, Inc., will stand to benefit more from the measure, local airline operators said.
AirAsia Philippines, led by Mr. Aquino’s cousin Antonio "Tonyboy" Cojuangco, Jr., formally announced its expansion plans in the country nearly six months after the change in the country’s presidency.
The draft implementing rules even go as far as to remove local carriers from the panel in charge of negotiating air access rights with other countries.
The country’s official air carriers, which had been members of the two panels under EO 219 issued in 1995, will now merely "participate in the proceedings as observers" under the new EOs.
"Our stand remains the same. We support an open skies policy that adheres to the principle of reciprocity [in air rights]," Philippine Airlines (PAL) spokesperson Cielo C. Villaluna said in a telephone interview.
"PAL has always maintained that, in all negotiations, all stakeholders must be consulted to come up with what is in the best interest of all concerned," Ms. Villaluna said.
Candice A. Iyog, Cebu Air vice-president for marketing and distribution, echoed this view.
"The airline has been consistent in its support for the EO. All we want is to be given the chance to compete through reciprocity in air rights," Ms. Iyog said in a separate telephone interview.
Another local carrier, South East Asian Airlines, Inc. (Seair), voiced the same concern.
"We support the pocket-open skies policy. But, also in support of our colleagues in the industry, the government should consider adding a provision in the implementing rules and regulations: application of foreign carriers should be accompanied with an endorsement of their own governments that they are willing to grant the same rights to any Philippine carrier," Avelino L. Zapanta, Seair president and chief executive officer, said in a telephone interview.
Win-win arrangement?
The government, for its part, has argued that local carriers will also reap gains from the measure when tourist numbers rise as they will maintain their exclusive rights to shuttle passengers within the country.
This, as EO 29 expressly prohibits surrendering "cabotage rights" -- the authority to the transport of goods and passengers between two or more points within the Philippines -- to foreign carriers.
"We will never allow cabotage rights to be granted to foreign airlines. So, for example, tourists brought in Iloilo who want to travel to Manila will be taking a flight through local carriers," Mr. Porciuncula said.
The Joint Foreign Chambers, meanwhile, have said that work to attract more carriers and thus boost tourism should not stop short at just liberalizing the air space.
Taxes that discriminate against foreign carriers, should also be addressed, the group had said in earlier statements.
This issue, however, has been entrusted to legislators to address through amendments in tax laws.
In the meantime, foreign carriers will soon be allowed to apply for new landing entitlements soon after the implementing rules for EOs 28 and 29 are published.
"We are considering economic gains, further development of secondary gateways, tourism, and a lot more. We are trying to look at the long-term benefits of the country here," Mr. Porciuncula said.
May 4, 2011
BY KATHLEEN A. MARTIN, Reporter
A FLIGHT from Kuala Lumpur to either Manila or Colombo covers roughly the same distance, but Malaysia Airlines -- which flies both routes -- charges 105% more to fly to the Philippine capital, according to its Web site.
While many factors cause this price gap, it is notable that Malaysian airlines enjoy a more open market in Sri Lanka via its expanded Air Services Agreement established in 2005.
The Aquino administration, which has pushed for opening up Philippine skies through Executive Orders (EOs) 28 and 29, has pointed out that the country needs similar liberalization, albeit via blanket policy, to attract more competing airlines and thus lower fares.
"The [pocket-open skies policy] was issued because of tourism...Tourism will have its effects on job creation and investments in the provinces...Airfares and freight cost may go down further too," Tourism Secretary Alberto A. Lim said in a telephone interview ahead of expected release of implementing rules of the two EOs this week.
The draft rules issued April 6 lay down the implementation guidelines for the EOs, including granting "fifth freedom" to foreign carriers.
This allows foreign carriers to make stopovers abroad before finally touching down on any Philippine airport, except Ninoy Aquino International Airport.
For instance, carriers seeking to transport passengers from Hong Kong to Cebu are now allowed to make a stop in Macau first, thus enabling them to gather more travelers.
The scheme is designed to make more routes, particularly those with limited passengers, become more economical to operate.
Tourists already increasing
Former president Gloria M. Arroyo, now congressional representative of the second district of Pampanga, had attempted to grant this fifth freedom to carriers traveling to and from the Diosdado Macapagal International Airport (DMIA) in Clark and the Subic Bay International Airport in 2006 under Executive Order 500.
But before the local aviation authority could implement this, Ms. Arroyo, in August of the same year, amended the order through EO 500-A to rescind this fifth freedom.
All that was granted was the third and fourth freedoms which allowed direct flights to and from Clark and Subic, without restrictions or limitations on capacity and type of aircraft.
Even with such limited liberalization, the areas served by the covered airports enjoyed increases in tourist arrivals, Mr. Lim said.
"It has certainly boosted tourism in Clark and in Subic. In Clark alone, tourist arrival at the DMIA [increased] from around 10,000 in 2003 to about 600,000 last year," Mr. Lim said.
"That’s not even counting how many jobs were made available due to businesses that opened as a result of that boost," he said.
The Aquino administration seeks to repeat this impact on a greater scale.
"We will be opening the country’s secondary gateways and boost economic activity in the provinces. That’s what we’re banking on with these EOs," Porvenir P. Porciuncula, Civil Aeronautics Board deputy director, said in a separate telephone interview.
Mr. Lim said "the Aquino government’s target is to double international arrivals by 2016 and we cannot do that with current frequencies."
The government aims to welcome as many as six million tourists in 2016, Mr. Lim said, from three million in 2009 and around 3.5 million in 2010.
In the meantime, the Philippines has lagged behind neighbors in the region in terms of attracting tourists.
According to the Association of South East Asian Nations Web site, the number of foreign visitors to member countries reached 65 million in 2009.
News reports said that, of this number, Malaysia had the most foreign visitors, followed by Thailand, Singapore, Indonesia, Vietnam, Philippines, Cambodia, Laos, Myanmar and Brunei.
"We also should note how this would be beneficial to our overseas Filipino workers. They will now have more choices going to and from the [Philippines] to where they work," Mr. Lim added.
Cautious
Local carriers, however, have cautioned that this thrust shouldn’t be pursued without asking other governments to grant similar access in exchange.
Otherwise, foreign carriers including AirAsia Philippines, Inc., will stand to benefit more from the measure, local airline operators said.
AirAsia Philippines, led by Mr. Aquino’s cousin Antonio "Tonyboy" Cojuangco, Jr., formally announced its expansion plans in the country nearly six months after the change in the country’s presidency.
The draft implementing rules even go as far as to remove local carriers from the panel in charge of negotiating air access rights with other countries.
The country’s official air carriers, which had been members of the two panels under EO 219 issued in 1995, will now merely "participate in the proceedings as observers" under the new EOs.
"Our stand remains the same. We support an open skies policy that adheres to the principle of reciprocity [in air rights]," Philippine Airlines (PAL) spokesperson Cielo C. Villaluna said in a telephone interview.
"PAL has always maintained that, in all negotiations, all stakeholders must be consulted to come up with what is in the best interest of all concerned," Ms. Villaluna said.
Candice A. Iyog, Cebu Air vice-president for marketing and distribution, echoed this view.
"The airline has been consistent in its support for the EO. All we want is to be given the chance to compete through reciprocity in air rights," Ms. Iyog said in a separate telephone interview.
Another local carrier, South East Asian Airlines, Inc. (Seair), voiced the same concern.
"We support the pocket-open skies policy. But, also in support of our colleagues in the industry, the government should consider adding a provision in the implementing rules and regulations: application of foreign carriers should be accompanied with an endorsement of their own governments that they are willing to grant the same rights to any Philippine carrier," Avelino L. Zapanta, Seair president and chief executive officer, said in a telephone interview.
Win-win arrangement?
The government, for its part, has argued that local carriers will also reap gains from the measure when tourist numbers rise as they will maintain their exclusive rights to shuttle passengers within the country.
This, as EO 29 expressly prohibits surrendering "cabotage rights" -- the authority to the transport of goods and passengers between two or more points within the Philippines -- to foreign carriers.
"We will never allow cabotage rights to be granted to foreign airlines. So, for example, tourists brought in Iloilo who want to travel to Manila will be taking a flight through local carriers," Mr. Porciuncula said.
The Joint Foreign Chambers, meanwhile, have said that work to attract more carriers and thus boost tourism should not stop short at just liberalizing the air space.
Taxes that discriminate against foreign carriers, should also be addressed, the group had said in earlier statements.
This issue, however, has been entrusted to legislators to address through amendments in tax laws.
In the meantime, foreign carriers will soon be allowed to apply for new landing entitlements soon after the implementing rules for EOs 28 and 29 are published.
"We are considering economic gains, further development of secondary gateways, tourism, and a lot more. We are trying to look at the long-term benefits of the country here," Mr. Porciuncula said.
Pilot shortage imperils airline sector
Wednesday, 04 May 2011 21:11 Recto Mercene / Reporter
Business Mirror
An aviation expert on Wednesday warned the government that the continuing flight of experienced Filipino pilots and airline technical personnel from the country might result in a shortage of aircraft captains in the country.
Former Philippine Airlines (PAL) pilot, Capt. Benhur Gomez, a founder of Omi Aviation, one of the country’s prestigious flying schools, made the warning.
“All major airlines are now competing against each other for services of good aircraft captains, and the Philippines is greatly affected by it because our pilots are lured by huge salaries being offered abroad,” Gomez said.?
Some international airlines, he said, are offering salaries of as much as $16,000 a month (P752,000) for Airbus A320 captains, and $18,000 (P846,000) to $20,000 (P940,000) for Boeing 747 captains.
Omni Aviation in Clark, Pampanga, hosts PAL’s pilot school.??
“The shortage of aircraft captains is also being worsened by the booming airline industry in the country, especially now that there are emerging budget airlines,” Gomez added.
He said that to be an aircraft captain of an international airline, a pilot or first officer must have at least three years’ flying experience, or ?the equivalent to 3,000 flying hours.??
This shortage of captains could result in delay in flights and, much worse, in scarcity of flights.??
Despite the situation, Gomez is encouraging students and professionals who want to have a career shift, to look at this opportunity to have a good-paying job.??
“Schooling is expensive, but once you are employed in the airline industry, in two years you would recover your investment because of the high salary,” he said partly in Filipino.??
Gomez called on the government to help resolve the situation by intensifying its crackdown on “fly-by-night” flying schools so as not to compromise the safety and quality of future Filipino pilots.
There are currently about 52 flying schools in the country.??
“There should be a renewed effort from the government’s regulatory body to go after these illegal flying schools,” Gomez added.??
He said these schools pad the flying time of?their “students” to enable them to get their pilot’s license faster. “The cheating is so blatant that some students log flying time even if they are not flying,” Gomez said.??
Training student pilots is very important because it helps them make the right decisions, especially during emergency situations, he said. “If the system fails, the judgment of an experienced pilot comes to play.”??
He said if the operations of these illegal schools continue, the integrity of Filipino pilots, who are known for their expertise worldwide, would be greatly affected.??
“The best the government could do is to assist and encourage legitimate flying schools to produce enough copilots who could be developed as captains in two to three years,” Gomez said.?
Business Mirror
An aviation expert on Wednesday warned the government that the continuing flight of experienced Filipino pilots and airline technical personnel from the country might result in a shortage of aircraft captains in the country.
Former Philippine Airlines (PAL) pilot, Capt. Benhur Gomez, a founder of Omi Aviation, one of the country’s prestigious flying schools, made the warning.
“All major airlines are now competing against each other for services of good aircraft captains, and the Philippines is greatly affected by it because our pilots are lured by huge salaries being offered abroad,” Gomez said.?
Some international airlines, he said, are offering salaries of as much as $16,000 a month (P752,000) for Airbus A320 captains, and $18,000 (P846,000) to $20,000 (P940,000) for Boeing 747 captains.
Omni Aviation in Clark, Pampanga, hosts PAL’s pilot school.??
“The shortage of aircraft captains is also being worsened by the booming airline industry in the country, especially now that there are emerging budget airlines,” Gomez added.
He said that to be an aircraft captain of an international airline, a pilot or first officer must have at least three years’ flying experience, or ?the equivalent to 3,000 flying hours.??
This shortage of captains could result in delay in flights and, much worse, in scarcity of flights.??
Despite the situation, Gomez is encouraging students and professionals who want to have a career shift, to look at this opportunity to have a good-paying job.??
“Schooling is expensive, but once you are employed in the airline industry, in two years you would recover your investment because of the high salary,” he said partly in Filipino.??
Gomez called on the government to help resolve the situation by intensifying its crackdown on “fly-by-night” flying schools so as not to compromise the safety and quality of future Filipino pilots.
There are currently about 52 flying schools in the country.??
“There should be a renewed effort from the government’s regulatory body to go after these illegal flying schools,” Gomez added.??
He said these schools pad the flying time of?their “students” to enable them to get their pilot’s license faster. “The cheating is so blatant that some students log flying time even if they are not flying,” Gomez said.??
Training student pilots is very important because it helps them make the right decisions, especially during emergency situations, he said. “If the system fails, the judgment of an experienced pilot comes to play.”??
He said if the operations of these illegal schools continue, the integrity of Filipino pilots, who are known for their expertise worldwide, would be greatly affected.??
“The best the government could do is to assist and encourage legitimate flying schools to produce enough copilots who could be developed as captains in two to three years,” Gomez said.?
Qatar Airways eyes 35% of Cargolux
Manila Bulletin
May 4, 2011
By ADAM SCHRECK
DUBAI, United Arab Emirates (AP) – Qatar Airways is in talks to buy at least a third of the freight airline Cargolux as part of ambitious expansion plans that would give it a bigger share of the world's rebounding cargo market, the carrier's CEO said Monday.
Akbar al-Baker declined to provide financial details of the 33 percent stake in the Luxembourg-based cargo hauler at a press conference in Dubai, but said the carriers expect to reach an agreement in the coming weeks.
Cargolux spokeswoman Martine Scheuren confirmed the talks were under way, but said they involved a slightly larger portion – 35 percent – of the carrier. Scheuren also declined to comment on the financial terms of any possible agreement.
Doha-based Qatar Airways is one of the region's fastest growing carriers, serving 100 destinations.
Al-Baker said the Mideast airline sees the deal with Cargolux Airlines International SA as a way to strengthen its bottom line without drawing management resources away from its growth strategies.
"We see there are synergies. Qatar Airways would like to expand. I've always said that we will only be interested in other airlines if they are healthy, if they are well-established (and if) they will add value to Qatar Airways,'' he said.
In its annual report released in March, Cargolux CEO Frank Reimen said the carrier was conducting an in-depth review of its business model, including potential alliances with strategic partners.
Cargolux generated $59.8 million in profit in 2010, rebounding from a steep loss the previous year as the global economy improved and demand for air cargo increased.
"We will not invest in an airline, no matter how attractive it is... that will take my management time and management resources to cure a sick individual,'' al-Baker said.
Cargolux operated 14 Boeing 747-400 freighters at the end of last year, according to its annual report. It plans to gradually overhaul its fleet by replacing existing freighters with Boeing's newer but delayed 747-8 model. It hopes to receive the first three of 13 of those planes it has on order by the end of this year.
Al-Baker also announced three new cities to Qatar's network, with flights scheduled to begin in November: Entebbe, Uganda; Baku, Azerbaijan, and Tbilisi, Georgia. An additional seven destinations announced previously are expected to be added before that.
May 4, 2011
By ADAM SCHRECK
DUBAI, United Arab Emirates (AP) – Qatar Airways is in talks to buy at least a third of the freight airline Cargolux as part of ambitious expansion plans that would give it a bigger share of the world's rebounding cargo market, the carrier's CEO said Monday.
Akbar al-Baker declined to provide financial details of the 33 percent stake in the Luxembourg-based cargo hauler at a press conference in Dubai, but said the carriers expect to reach an agreement in the coming weeks.
Cargolux spokeswoman Martine Scheuren confirmed the talks were under way, but said they involved a slightly larger portion – 35 percent – of the carrier. Scheuren also declined to comment on the financial terms of any possible agreement.
Doha-based Qatar Airways is one of the region's fastest growing carriers, serving 100 destinations.
Al-Baker said the Mideast airline sees the deal with Cargolux Airlines International SA as a way to strengthen its bottom line without drawing management resources away from its growth strategies.
"We see there are synergies. Qatar Airways would like to expand. I've always said that we will only be interested in other airlines if they are healthy, if they are well-established (and if) they will add value to Qatar Airways,'' he said.
In its annual report released in March, Cargolux CEO Frank Reimen said the carrier was conducting an in-depth review of its business model, including potential alliances with strategic partners.
Cargolux generated $59.8 million in profit in 2010, rebounding from a steep loss the previous year as the global economy improved and demand for air cargo increased.
"We will not invest in an airline, no matter how attractive it is... that will take my management time and management resources to cure a sick individual,'' al-Baker said.
Cargolux operated 14 Boeing 747-400 freighters at the end of last year, according to its annual report. It plans to gradually overhaul its fleet by replacing existing freighters with Boeing's newer but delayed 747-8 model. It hopes to receive the first three of 13 of those planes it has on order by the end of this year.
Al-Baker also announced three new cities to Qatar's network, with flights scheduled to begin in November: Entebbe, Uganda; Baku, Azerbaijan, and Tbilisi, Georgia. An additional seven destinations announced previously are expected to be added before that.
IRR on pocket open skies out on May 6
Business Mirror
Tuesday, 03 May 2011 21:26 Lenie Lectura / Reporter
THE rules implementing a “pocket open skies” policy will be out on Friday, Transportation Secretary Jose de Jesus said on Tuesday, even as Cebu Pacific insisted on the need for reciprocity.
In a text message, de Jesus said the implementing rules and regulation (IRR) on Executive Order (EO) 29 would be issued on May 6. Civil Aeronautics Board (CAB) executive director Carmelo Arcilla will make the announcement on that day in a media briefing.
“It’s [IRR] been approved by the CAB, and the approved version is now being circulated to members for signature,” said de Jesus, when asked if he, as CAB chairman, has signed the IRR.
He said, “There were some changes,” but refused to give details.
The draft IRR, which underwent a public hearing two weeks ago, allows foreign carriers to apply for new air rights or increase in frequencies that are “over and above the limitations imposed by relevant Air Service Agreements.”
Under the existing setup, carriers are granted traffic rights based on the bilateral deals agreed upon by the air
panel of both countries.
However, the CAB proposed, under Rule IV of 4.1, that “the Philippine air panels shall hold consultation talks with the respective state of registry of the carriers operating under EO20 to include such frequencies and capacities in their present bilateral agreement with the Philippines as regular traffic rights. Such inclusion shall include the reciprocal grant to Philippine carriers of equivalent traffic rights by the state of registry of such carriers.”
The CAB may revoke the said grant if a foreign carrier’s home state does not allow reciprocal rights within 12 months.
On the other hand, the IRR allows the board to waive reciprocal rights if the foreign carriers’ added entry is seen as a “national interest.”
Cebu Air Inc. expressed concern over this, pointing out that there should be reciprocity as it pushes for a mutual and equal exchange of sovereign air rights between the Philippines and other countries so local carriers can compete with foreign airlines on a level playing field.
Cebu Pacific said during the public hearing that the IRR does not address the need for reciprocity.
“Foreign airlines are granted unlimited access to Cebu from Hong Kong but we are still limited to 2,500 seats,” said the airline, adding that without reciprocity it will not be in the position to compete with foreign airlines, which can fly freely to the Philippines.
“EO 29 [open skies] opened our skies to bring in more tourists, and Cebu Pacific remains supportive of the government’s thrust to boost tourism to the country. If given the opportunity to compete, Cebu Pacific’s trademark low fares will stoke competition and keep the foreign carriers on their toes, which is the best way to bring in tourists. It will also benefit our own OFWs [overseas Filipino workers] who work and live abroad. Please allow us to participate in this competition because EO 29 excludes Philippine carriers. We are ready and fit to compete with the best and the biggest foreign carriers under the same rules,” it added.
However, the CAB proposed “the Philippine air panels shall hold consultation talks with the respective state of registry of the carriers operating under EO 29 to include such frequencies and capacities in their present bilateral agreement with the Philippines as regular traffic rights. Such inclusion shall include the reciprocal grant to Philippine carriers of equivalent traffic rights by the state of registry of such carriers.”
The CAB may revoke the said grant if a foreign carrier’s home state does not allow reciprocal rights within 12 months.
Tuesday, 03 May 2011 21:26 Lenie Lectura / Reporter
THE rules implementing a “pocket open skies” policy will be out on Friday, Transportation Secretary Jose de Jesus said on Tuesday, even as Cebu Pacific insisted on the need for reciprocity.
In a text message, de Jesus said the implementing rules and regulation (IRR) on Executive Order (EO) 29 would be issued on May 6. Civil Aeronautics Board (CAB) executive director Carmelo Arcilla will make the announcement on that day in a media briefing.
“It’s [IRR] been approved by the CAB, and the approved version is now being circulated to members for signature,” said de Jesus, when asked if he, as CAB chairman, has signed the IRR.
He said, “There were some changes,” but refused to give details.
The draft IRR, which underwent a public hearing two weeks ago, allows foreign carriers to apply for new air rights or increase in frequencies that are “over and above the limitations imposed by relevant Air Service Agreements.”
Under the existing setup, carriers are granted traffic rights based on the bilateral deals agreed upon by the air
panel of both countries.
However, the CAB proposed, under Rule IV of 4.1, that “the Philippine air panels shall hold consultation talks with the respective state of registry of the carriers operating under EO20 to include such frequencies and capacities in their present bilateral agreement with the Philippines as regular traffic rights. Such inclusion shall include the reciprocal grant to Philippine carriers of equivalent traffic rights by the state of registry of such carriers.”
The CAB may revoke the said grant if a foreign carrier’s home state does not allow reciprocal rights within 12 months.
On the other hand, the IRR allows the board to waive reciprocal rights if the foreign carriers’ added entry is seen as a “national interest.”
Cebu Air Inc. expressed concern over this, pointing out that there should be reciprocity as it pushes for a mutual and equal exchange of sovereign air rights between the Philippines and other countries so local carriers can compete with foreign airlines on a level playing field.
Cebu Pacific said during the public hearing that the IRR does not address the need for reciprocity.
“Foreign airlines are granted unlimited access to Cebu from Hong Kong but we are still limited to 2,500 seats,” said the airline, adding that without reciprocity it will not be in the position to compete with foreign airlines, which can fly freely to the Philippines.
“EO 29 [open skies] opened our skies to bring in more tourists, and Cebu Pacific remains supportive of the government’s thrust to boost tourism to the country. If given the opportunity to compete, Cebu Pacific’s trademark low fares will stoke competition and keep the foreign carriers on their toes, which is the best way to bring in tourists. It will also benefit our own OFWs [overseas Filipino workers] who work and live abroad. Please allow us to participate in this competition because EO 29 excludes Philippine carriers. We are ready and fit to compete with the best and the biggest foreign carriers under the same rules,” it added.
However, the CAB proposed “the Philippine air panels shall hold consultation talks with the respective state of registry of the carriers operating under EO 29 to include such frequencies and capacities in their present bilateral agreement with the Philippines as regular traffic rights. Such inclusion shall include the reciprocal grant to Philippine carriers of equivalent traffic rights by the state of registry of such carriers.”
The CAB may revoke the said grant if a foreign carrier’s home state does not allow reciprocal rights within 12 months.
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