Malacañan Palace acts on tourism exec’s plea

Manila Standard Today
October 29, 2011


MalacaÑang has asked Transportation Secretary Manuel Roxas II and Foreign Affairs Secretary Albert del Rosario to take up the letter of tourism sector leader Robert Lim Joseph to President Benigno Aquino III over the review of Executive Order 29 and 28.

EO 28 revamped the government air negotiating and consultation panels, leaving out Philippine carriers while EO 29 imposed pocket open skies for airports in the provinces.

“We are thankful to President Aquino for acting on our concern. EO 29 which favors foreign carriers over local airlines was highly influenced by pro open skies advocates led by former Tourism Secretary Alberto Lim, the Freedom to Fly Coalition, and the Makati Business Club,” Joseph said in a statement.

The Palace endorsement was signed last Oct. 10 by Deputy Executive Secretary Teofilo Pilando Jr.

Joseph said EO 29 was the same as EO 500 which opened up our airports to foreign carriers without reciprocity. EO 500 was amended by EO 500-A on appeal of fair open skies advocates.

But pro open skies groups came up with EO 500-B, which remained unsigned during the Arroyo administration only to show up as EO 29, he noted.

“Our only concern here is reciprocity. We want local carriers to have equal chance to compete with foreign airlines,” Joseph said.

He wrote Mr. Aquino on Sept. 28, 2011, citing the disadvantageous provisions of the two EOs and how Philippine carriers and the local aviation industry would be edged out of competition.

In his letter last March 14, Joseph, chairman of Tourism Educators and Movers Philippines and one of the convenors of the Fair Trade Alliance, said g pocket open skies in airports outside of Metro Manila had no guarantee of reciprocity to local airlines.

“The EO granted unprecedented fifth freedom rights to foreign airlines without assurance that Philippine carriers will get the same reciprocal arrangements from their governments,” he said.

Under a fifth freedom environment, Singapore Airlines can fly to Diosdado Macapagal International Airport in Clark, Pampanga, pick up passengers there and then fly them to Los Angeles, USA.

“But Philippine carriers like Cebu Pacific and Philippine Airlines cannot do the same as Singapore would not give a fair exchange of rights,” he said in the letter.

According to Joseph, foreign airlines are welcome to bring tourists in and out, “but we should also give local carriers a fair chance to compete... Because of the open skies policy in airports outside of Metro Manila, foreign airlines can now set up their hub in say, Clark or Cebu, which is a lucrative market.”

He expressed surprise over EO 28 why Filipino airlines are excluded from the air negotiating and consultation panels whjile bveing allowed to sit merely as observers.

“Airlines are the biggest investors in the industry. One Airbus 320 alone costs US$120 million, which can already fund 3 five-star hotels. Philippine carriers are major stakeholders in the industry, generating thousands of direct and indirect employment and developing technical skills,” Josepha said.

“They are top contributors to the country’s tourism promotions drive and the tourism, hospitality and service industries, as such they should have a say in negotiating for air rights. Thus excluding them from the two panels would be unfair.”

Joseph also took a dig at the inclusion of the Department of Labor and Employment and the Department of Trade and Industry in the air panels, wondering what they have “to do with negotiations for air rights.”