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.