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.