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.
Showing posts with label open skies. Show all posts
Showing posts with label open skies. Show all posts
Tuesday, May 10, 2011
Monday, May 9, 2011
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
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
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.
Thursday, May 5, 2011
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.
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.
Tuesday, May 3, 2011
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.
Lawmaker denounces open-skies policy
by Rey T. Salita
Manila Standard Today
May 2, 2011
SENATOR Sergio Osmena II has expressed dismay over the administration’s plan to seek reciprocity from other countries to allow Philippine air carriers take additional flights after Malacanang had declared an open skies policy last month.
The move is too late because the government has already waived its negotiating position when it declared its open skies unilaterally before asking the other countries for the Philippines to be extended the same courtesy.
“It’s going be harder to remedy now because of the open skies. I am pretty disappointed on the way they made that decision and the manner by which they carried it out,” Osmena said.
Osmena was referring to President Aquino’s executive order no. 29 that gave foreign airlines wider access to the Philippines in the hope of boosting tourism from the Unites States and Europe.
“According to the Department of Tourism and Civil Aeronautics Board, if you open it up, they will come. I don’t think it will be that easy,” Osmena said.
The move had compromised and placed at a disadvantage the country’s air carriers particularly Cebu Pacific, Philippine Airlines/Airphil Express, Zest Airways, Seair and the Spirit of Manila.
“It is painful we gave something away free when we could have gotten something in return,” Osmena said.
Aquino’s order, Osmena said, scrapped restrictions over the country’s airports and empowered the government to “offer third, fourth, and fifth freedom rights to Philip-pine international airports except NAIA without restriction as to frequency, capacity, type of (foreign commercial) aircraft and other arrangements that will serve national interest.
Osmena said surrendering the country’s fifth freedom rights allow foreign carriers to pick up local passengers, mostly Filipino workers overseas, to destinations in the United States and Europe, thereby “inconveniencing” the local airlines.
Manila Standard Today
May 2, 2011
SENATOR Sergio Osmena II has expressed dismay over the administration’s plan to seek reciprocity from other countries to allow Philippine air carriers take additional flights after Malacanang had declared an open skies policy last month.
The move is too late because the government has already waived its negotiating position when it declared its open skies unilaterally before asking the other countries for the Philippines to be extended the same courtesy.
“It’s going be harder to remedy now because of the open skies. I am pretty disappointed on the way they made that decision and the manner by which they carried it out,” Osmena said.
Osmena was referring to President Aquino’s executive order no. 29 that gave foreign airlines wider access to the Philippines in the hope of boosting tourism from the Unites States and Europe.
“According to the Department of Tourism and Civil Aeronautics Board, if you open it up, they will come. I don’t think it will be that easy,” Osmena said.
The move had compromised and placed at a disadvantage the country’s air carriers particularly Cebu Pacific, Philippine Airlines/Airphil Express, Zest Airways, Seair and the Spirit of Manila.
“It is painful we gave something away free when we could have gotten something in return,” Osmena said.
Aquino’s order, Osmena said, scrapped restrictions over the country’s airports and empowered the government to “offer third, fourth, and fifth freedom rights to Philip-pine international airports except NAIA without restriction as to frequency, capacity, type of (foreign commercial) aircraft and other arrangements that will serve national interest.
Osmena said surrendering the country’s fifth freedom rights allow foreign carriers to pick up local passengers, mostly Filipino workers overseas, to destinations in the United States and Europe, thereby “inconveniencing” the local airlines.
Monday, May 2, 2011
Lawmaker denounces open-skies policy
May 2, 2011
by Rey T. Salita
Manila Standard Today
SENATOR Sergio Osmena II has expressed dismay over the administration’s plan to seek reciprocity from other countries to allow Philippine air carriers take additional flights after Malacanang had declared an open skies policy last month.
The move is too late because the government has already waived its negotiating position when it declared its open skies unilaterally before asking the other countries for the Philippines to be extended the same courtesy.
“It’s going be harder to remedy now because of the open skies. I am pretty disappointed on the way they made that decision and the manner by which they carried it out,” Osmena said.
Osmena was referring to President Aquino’s executive order no. 29 that gave foreign airlines wider access to the Philippines in the hope of boosting tourism from the Unites States and Europe.
“According to the Department of Tourism and Civil Aeronautics Board, if you open it up, they will come. I don’t think it will be that easy,” Osmena said.
The move had compromised and placed at a disadvantage the country’s air carriers particularly Cebu Pacific, Philippine Airlines/Airphil Express, Zest Airways, Seair and the Spirit of Manila.
“It is painful we gave something away free when we could have gotten something in return,” Osmena said.
Aquino’s order, Osmena said, scrapped restrictions over the country’s airports and empowered the government to “offer third, fourth, and fifth freedom rights to Philip-pine international airports except NAIA without restriction as to frequency, capacity, type of (foreign commercial) aircraft and other arrangements that will serve national interest.
Osmena said surrendering the country’s fifth freedom rights allow foreign carriers to pick up local passengers, mostly Filipino workers overseas, to destinations in the United States and Europe, thereby “inconveniencing” the local airlines.
by Rey T. Salita
Manila Standard Today
SENATOR Sergio Osmena II has expressed dismay over the administration’s plan to seek reciprocity from other countries to allow Philippine air carriers take additional flights after Malacanang had declared an open skies policy last month.
The move is too late because the government has already waived its negotiating position when it declared its open skies unilaterally before asking the other countries for the Philippines to be extended the same courtesy.
“It’s going be harder to remedy now because of the open skies. I am pretty disappointed on the way they made that decision and the manner by which they carried it out,” Osmena said.
Osmena was referring to President Aquino’s executive order no. 29 that gave foreign airlines wider access to the Philippines in the hope of boosting tourism from the Unites States and Europe.
“According to the Department of Tourism and Civil Aeronautics Board, if you open it up, they will come. I don’t think it will be that easy,” Osmena said.
The move had compromised and placed at a disadvantage the country’s air carriers particularly Cebu Pacific, Philippine Airlines/Airphil Express, Zest Airways, Seair and the Spirit of Manila.
“It is painful we gave something away free when we could have gotten something in return,” Osmena said.
Aquino’s order, Osmena said, scrapped restrictions over the country’s airports and empowered the government to “offer third, fourth, and fifth freedom rights to Philip-pine international airports except NAIA without restriction as to frequency, capacity, type of (foreign commercial) aircraft and other arrangements that will serve national interest.
Osmena said surrendering the country’s fifth freedom rights allow foreign carriers to pick up local passengers, mostly Filipino workers overseas, to destinations in the United States and Europe, thereby “inconveniencing” the local airlines.
Friday, April 15, 2011
Draft ‘open skies’ rules seek to address reciprocity
Business World
April 14, 2011 11:11:53 PM
DRAFT RULES implementing the "pocket open skies" policy seek to appease local carriers’ concerns regarding reciprocity but also maintain that national interest will be paramount in setting air services deals.
Reciprocity, in this context, refers to local carriers being granted the same air rights the Philippines allows foreign airlines. The proposed implementing rules and regulations (IRR) in this case gives the foreign carriers’ home states one year to approve identical privileges.
"The [Civil Aeronautics] Board, in case of failure to reach mutual agreement to grant reciprocal rights to Philippine carriers within 12 months from the grant ... may revoke the said grant," the draft IRR states.
The rules, however, also state that operations without reciprocal rights can be allowed if the board "deems it to promote national interest and/or mutual benefits."
Candice A. Iyog, Cebu Air, Inc. vice-president for marketing and distribution, said that the draft IRR was not enough.
"It does not address the need for reciprocity ... we will raise all our concerns next week during the hearing scheduled for the [draft IRR]," Ms. Iyog said.
An April 19 public hearing has been scheduled.
Ms. Iyog said the airline was consistent in its support for the "pocket open skies" policy and in also demanding "equal opportunity".
"All we’re asking for is the opportunity to compete. If it’s not granted, we will not be able to be in the position to compete with these airlines without the rights to fly in their country while foreign carriers can fly freely to the Philippines," she said.
Concurring, Philippine Airlines spokesperson Cielo C. Villaluna said, "We welcome the fact that the government recognizes need for reciprocity in air rights negotiations. However, what is in the national interest may be susceptible to varying interpretations".
"As such, PAL has always maintained that in all negotiations, all stakeholders like airlines, the travel and tourism sector, and others must be consulted as to what is in the best interest of all," she added.
President Benigno S. C. Aquino III last month ordered the further opening of Philippine skies to foreign airlines in the aim of promoting investments and trade and providing travelers more choices.
Two executive orders (EOs) were issued by Malacañang: EO 29 authorizing the Civil Aeronautics Board and negotiators to "pursue more aggressively the international civil aviation liberalization policy" and EO 28 which again splits the country’s negotiating panel into two.
Carriers were demoted to being observers in air service agreement negotiations, prompting the Fair Trade Alliance (FTA) yesterday to call for their reinstatement.
"It’s important that the representatives of the local carriers are there ... If the representatives are there, reciprocity will be ensured," FTA senior program officer Ember R. Cruz said in a briefing.
They called for a review of EOs 28 and 29 but Palace spokesperson Ricky A. Carandang said "We are not likely to revise." -- K. A. Martin with A. M. G. Roa
April 14, 2011 11:11:53 PM
DRAFT RULES implementing the "pocket open skies" policy seek to appease local carriers’ concerns regarding reciprocity but also maintain that national interest will be paramount in setting air services deals.
Reciprocity, in this context, refers to local carriers being granted the same air rights the Philippines allows foreign airlines. The proposed implementing rules and regulations (IRR) in this case gives the foreign carriers’ home states one year to approve identical privileges.
"The [Civil Aeronautics] Board, in case of failure to reach mutual agreement to grant reciprocal rights to Philippine carriers within 12 months from the grant ... may revoke the said grant," the draft IRR states.
The rules, however, also state that operations without reciprocal rights can be allowed if the board "deems it to promote national interest and/or mutual benefits."
Candice A. Iyog, Cebu Air, Inc. vice-president for marketing and distribution, said that the draft IRR was not enough.
"It does not address the need for reciprocity ... we will raise all our concerns next week during the hearing scheduled for the [draft IRR]," Ms. Iyog said.
An April 19 public hearing has been scheduled.
Ms. Iyog said the airline was consistent in its support for the "pocket open skies" policy and in also demanding "equal opportunity".
"All we’re asking for is the opportunity to compete. If it’s not granted, we will not be able to be in the position to compete with these airlines without the rights to fly in their country while foreign carriers can fly freely to the Philippines," she said.
Concurring, Philippine Airlines spokesperson Cielo C. Villaluna said, "We welcome the fact that the government recognizes need for reciprocity in air rights negotiations. However, what is in the national interest may be susceptible to varying interpretations".
"As such, PAL has always maintained that in all negotiations, all stakeholders like airlines, the travel and tourism sector, and others must be consulted as to what is in the best interest of all," she added.
President Benigno S. C. Aquino III last month ordered the further opening of Philippine skies to foreign airlines in the aim of promoting investments and trade and providing travelers more choices.
Two executive orders (EOs) were issued by Malacañang: EO 29 authorizing the Civil Aeronautics Board and negotiators to "pursue more aggressively the international civil aviation liberalization policy" and EO 28 which again splits the country’s negotiating panel into two.
Carriers were demoted to being observers in air service agreement negotiations, prompting the Fair Trade Alliance (FTA) yesterday to call for their reinstatement.
"It’s important that the representatives of the local carriers are there ... If the representatives are there, reciprocity will be ensured," FTA senior program officer Ember R. Cruz said in a briefing.
They called for a review of EOs 28 and 29 but Palace spokesperson Ricky A. Carandang said "We are not likely to revise." -- K. A. Martin with A. M. G. Roa
Open skies or bust?
Updated April 14, 2011 12:00 AM
SPY BITS By Babe Romualdez
Philippines Star
No one will argue that there are a lot of advantages to tourism if we have an “open skies” policy, but the big question is: Are we ready for it? Recently, the Ninoy Aquino International Airport (NAIA) terminal 1 was voted as one of the worst airports in the world by the website “The Guide to Sleeping in Airports”, with travelers describing it in such uncomplimentary terms as worse than a cattle yard. If a big airport like New York’s John F. Kennedy airport has a hard time accommodating big jets (like what happened a couple of days ago when an Air France A380 jumbo jet collided with a much smaller Delta Comair Bombardier CRJ-700), imagine what worse things could happen in our airports? The French airplane was taxiing on the runway for takeoff to Paris when its left wing clipped the Comair aircraft which has just landed from Boston – making the smaller plane look like a toy as it spun by almost 90 degrees.
Although both aircraft sustained some damage, fortunately no one was hurt. The accident however focuses attention once more on the difficulty of airports in handling a new class of giant planes. Just imagine what bedlam and commotion could happen at the Ninoy Aquino International Airport if we open our skies to large aircraft like the Airbus 380 or the new Boeing 747-8. Fortunately (or unfortunately), it might take several decades more before our airports can be upgraded to accommodate new generation planes – but maybe Clark International Airport in Pampanga would be a good candidate. But then again is the transport system to and from Clark ready?
Breezing through Hawaiian Air
While Air France passengers were nearly scared out of their wits due to the collision at JFK, passengers of Hawaiian Airlines will be pleasantly surprised at the redesigned ticket lobbies that can totally make one “breeze through” the check in process. The new self-service stations will do away with lengthy lines and other hassles associated with luggage weigh-ins, tagging and obtaining of boarding passes since a passenger can check himself in for any interisland, mainland or international flight through the use of state-of-the-art technology that completes the entire process in no time at all. Passengers can place checked-in luggage straight into the single conveyor belt for USDA inspection, TSA screening and loading.
And if anyone wants an upgrade or other services, they can settle the fees right there and then especially with the presence of Hawaiian Airline’s customer service agents for further assistance. Definitely, the revolutionary process takes away a lot of the hassles in traveling. We were told that this breezy innovation was a result of two years of study and research on the part of the airline – which hopefully our local airlines can soon replicate for passengers.
Kingdom’s $200-million investment
Despite the turmoil that’s beginning to spread like an epidemic in the Arab world, a lot of Filipinos are heartened to note that relations between the Philippines and Middle Eastern countries like Saudi Arabia continue to be strong. This was evident during the recent visit of Vice President Jejomar Binay to the office of Saudi Prince Alwaleed’s Kingdom Holding Company where VP Binay was warmly received. The discussion centered on investment issues and the strengthening of bilateral economic relations between the two countries.
Prince Alwaleed has solid investments in the Philippines, among them the $200-million project to construct the Raffles Residences in the heart of Makati’s business district. The project, which is a joint venture between Kingdom Hotel Investments and Ayala Land, consists of a 279-room Fairmont Hotel, a 30-suite Raffles Hotel and 236 Raffles branded private residences, with both hotels expected to open by 2012. We were told that some 1,600 workers have been employed for the project, and off-plan residential sales have reached over $75 million to date with some 75 percent of the units already sold. It can also be recalled that Saudi Arabia also made a generous donation for medical aid to the victims of typhoon Ondoy in 2009.
Smart options
The incessant increase in oil prices is energizing public officials into thinking of “smart” options to alleviate the plight of poor Filipinos, like the bidding out of “Smart cards” (so-called because of an embedded chip containing a microprocessor) to give fuel subsidies to jeepney and tricycle operators. The Department of Agriculture followed suit, drawing up a database of potential beneficiaries from the farming and fishery sector for the government fuel subsidy program. But as usual, a lot of discussion is now being devoted to the implementing rules and regulations, with several sectors also questioning the procurement process and the criteria in determining the beneficiaries.
One other smart option worth looking into is the huge investment made by Smartmatic for research and development centers in Taiwan and Panama worth $60 million over the next five years. According to sources, the company’s expansion plans in the global market are geared towards technological solutions not only in the area of elections but in identity management and “Smart Cities.” The Smart Cities component incorporates security applications for critical-mission projects for governments, such as public safety platforms, public transport systems, emergency management solutions and even census/data gathering programs – essential areas that can help improve people’s quality of life.
Spy Bits sources said the choice of Panama was due to the country’s geographic advantage especially with its accessibility to both the Atlantic and the Pacific, while the extraordinary boom in Taiwan’s tech industries and the abundance of talented people in the electronics field made it very attractive. But aren’t a lot of workers in Taiwan Filipinos?
SPY BITS By Babe Romualdez
Philippines Star
No one will argue that there are a lot of advantages to tourism if we have an “open skies” policy, but the big question is: Are we ready for it? Recently, the Ninoy Aquino International Airport (NAIA) terminal 1 was voted as one of the worst airports in the world by the website “The Guide to Sleeping in Airports”, with travelers describing it in such uncomplimentary terms as worse than a cattle yard. If a big airport like New York’s John F. Kennedy airport has a hard time accommodating big jets (like what happened a couple of days ago when an Air France A380 jumbo jet collided with a much smaller Delta Comair Bombardier CRJ-700), imagine what worse things could happen in our airports? The French airplane was taxiing on the runway for takeoff to Paris when its left wing clipped the Comair aircraft which has just landed from Boston – making the smaller plane look like a toy as it spun by almost 90 degrees.
Although both aircraft sustained some damage, fortunately no one was hurt. The accident however focuses attention once more on the difficulty of airports in handling a new class of giant planes. Just imagine what bedlam and commotion could happen at the Ninoy Aquino International Airport if we open our skies to large aircraft like the Airbus 380 or the new Boeing 747-8. Fortunately (or unfortunately), it might take several decades more before our airports can be upgraded to accommodate new generation planes – but maybe Clark International Airport in Pampanga would be a good candidate. But then again is the transport system to and from Clark ready?
Breezing through Hawaiian Air
While Air France passengers were nearly scared out of their wits due to the collision at JFK, passengers of Hawaiian Airlines will be pleasantly surprised at the redesigned ticket lobbies that can totally make one “breeze through” the check in process. The new self-service stations will do away with lengthy lines and other hassles associated with luggage weigh-ins, tagging and obtaining of boarding passes since a passenger can check himself in for any interisland, mainland or international flight through the use of state-of-the-art technology that completes the entire process in no time at all. Passengers can place checked-in luggage straight into the single conveyor belt for USDA inspection, TSA screening and loading.
And if anyone wants an upgrade or other services, they can settle the fees right there and then especially with the presence of Hawaiian Airline’s customer service agents for further assistance. Definitely, the revolutionary process takes away a lot of the hassles in traveling. We were told that this breezy innovation was a result of two years of study and research on the part of the airline – which hopefully our local airlines can soon replicate for passengers.
Kingdom’s $200-million investment
Despite the turmoil that’s beginning to spread like an epidemic in the Arab world, a lot of Filipinos are heartened to note that relations between the Philippines and Middle Eastern countries like Saudi Arabia continue to be strong. This was evident during the recent visit of Vice President Jejomar Binay to the office of Saudi Prince Alwaleed’s Kingdom Holding Company where VP Binay was warmly received. The discussion centered on investment issues and the strengthening of bilateral economic relations between the two countries.
Prince Alwaleed has solid investments in the Philippines, among them the $200-million project to construct the Raffles Residences in the heart of Makati’s business district. The project, which is a joint venture between Kingdom Hotel Investments and Ayala Land, consists of a 279-room Fairmont Hotel, a 30-suite Raffles Hotel and 236 Raffles branded private residences, with both hotels expected to open by 2012. We were told that some 1,600 workers have been employed for the project, and off-plan residential sales have reached over $75 million to date with some 75 percent of the units already sold. It can also be recalled that Saudi Arabia also made a generous donation for medical aid to the victims of typhoon Ondoy in 2009.
Smart options
The incessant increase in oil prices is energizing public officials into thinking of “smart” options to alleviate the plight of poor Filipinos, like the bidding out of “Smart cards” (so-called because of an embedded chip containing a microprocessor) to give fuel subsidies to jeepney and tricycle operators. The Department of Agriculture followed suit, drawing up a database of potential beneficiaries from the farming and fishery sector for the government fuel subsidy program. But as usual, a lot of discussion is now being devoted to the implementing rules and regulations, with several sectors also questioning the procurement process and the criteria in determining the beneficiaries.
One other smart option worth looking into is the huge investment made by Smartmatic for research and development centers in Taiwan and Panama worth $60 million over the next five years. According to sources, the company’s expansion plans in the global market are geared towards technological solutions not only in the area of elections but in identity management and “Smart Cities.” The Smart Cities component incorporates security applications for critical-mission projects for governments, such as public safety platforms, public transport systems, emergency management solutions and even census/data gathering programs – essential areas that can help improve people’s quality of life.
Spy Bits sources said the choice of Panama was due to the country’s geographic advantage especially with its accessibility to both the Atlantic and the Pacific, while the extraordinary boom in Taiwan’s tech industries and the abundance of talented people in the electronics field made it very attractive. But aren’t a lot of workers in Taiwan Filipinos?
‘Open skies’ draft IRR skirts reciprocity rule
First Posted 21:32:00 04/14/2011
By Paolo Montecillo
Philippine Daily Inquirer
MANILA, Philippines—Ignoring calls made by the country’s top carriers, the government said it would allow foreign airlines to fly to the Philippines under the new “open skies” policy, even if it would not be reciprocated by the host countries of those airlines.
While it is still a priority, reciprocity of air rights for local carries will not be a requirement in allowing foreign airlines to mount more flights to the Philippines, the new implementing rules and regulations (IRR) for Executive Order No. 29 showed.
Signed earlier this year, EO 29 liberalizes the air rights regime in the country.
Under the new rules, foreign carriers that wish to mount flights to the Philippines may apply for new air rights that are over and above existing Air Service Agreements, which are bilateral deals that impose specific limits on the number of flights between two countries.
This is meant to allow more foreigners to travel to the Philippines, and in the process, help develop the country’s tourism sector and boost economic activity in far-flung areas.
Airports in Metro Manila are not covered by the “open skies” order.
A condition in the new rules states, “Such inclusion shall include the reciprocal grant to Philippine carriers of equivalent traffic rights” by the respective home countries of foreign airlines.
“The board reserves the right to revoke, suspend or restrict operations hereby granted in the event that the state of registry of the foreign carrier... failed to extend equal opportunity to Philippine carriers,” the rules made by the Civil Aeronautics Board (CAB) said.
“(But) the board may continue to allow operations of traffic rights... if the board deems that it promotes national interest and mutual benefits,” it added.
Earlier, local carriers’ Cebu Pacific and Philippine Airlines (PAL) called on the government to protect the country’s air travel industry by making sure that local carriers get the same air rights that foreign airlines will get.
However, business groups have said the fate of local carriers should not be the government’s concern, noting that liberalizing air rights would bring in much-needed investments into the country and increase competition in the industry.
By Paolo Montecillo
Philippine Daily Inquirer
MANILA, Philippines—Ignoring calls made by the country’s top carriers, the government said it would allow foreign airlines to fly to the Philippines under the new “open skies” policy, even if it would not be reciprocated by the host countries of those airlines.
While it is still a priority, reciprocity of air rights for local carries will not be a requirement in allowing foreign airlines to mount more flights to the Philippines, the new implementing rules and regulations (IRR) for Executive Order No. 29 showed.
Signed earlier this year, EO 29 liberalizes the air rights regime in the country.
Under the new rules, foreign carriers that wish to mount flights to the Philippines may apply for new air rights that are over and above existing Air Service Agreements, which are bilateral deals that impose specific limits on the number of flights between two countries.
This is meant to allow more foreigners to travel to the Philippines, and in the process, help develop the country’s tourism sector and boost economic activity in far-flung areas.
Airports in Metro Manila are not covered by the “open skies” order.
A condition in the new rules states, “Such inclusion shall include the reciprocal grant to Philippine carriers of equivalent traffic rights” by the respective home countries of foreign airlines.
“The board reserves the right to revoke, suspend or restrict operations hereby granted in the event that the state of registry of the foreign carrier... failed to extend equal opportunity to Philippine carriers,” the rules made by the Civil Aeronautics Board (CAB) said.
“(But) the board may continue to allow operations of traffic rights... if the board deems that it promotes national interest and mutual benefits,” it added.
Earlier, local carriers’ Cebu Pacific and Philippine Airlines (PAL) called on the government to protect the country’s air travel industry by making sure that local carriers get the same air rights that foreign airlines will get.
However, business groups have said the fate of local carriers should not be the government’s concern, noting that liberalizing air rights would bring in much-needed investments into the country and increase competition in the industry.
Sunday, April 3, 2011
‘Open skies’ policy needs work – MBC
The Manila Times
By Ben Arnold O. De Vera, Reporter
April 2, 2011
BEYOND approving “pocket open skies,” the government still has a lot of work to do to lift the aviation sector, according to the Makati Business Club (MBC).
“Developing and improving our airports, attracting investments in tourism establishments, upgrading our unique products and services, and addressing the security risks identified by the US Federal Aviation Authority in order to upgrade the country back to Category 1 are the next big steps that we hope the Aquino administration will pursue,” Peter Angelo Perfecto, MBC executive director, said in a statement on Friday.
Perfecto said the MBC “commends President Benigno Aquino 3rd, and his entire economic team, for issuing Executive Order [EO] 29 that authorizes the Civil Aeronautics Board and the Philippine Air Panels to offer and promote more liberalized international aviation agreements with foreign carriers.”
“This policy development is a milestone for the Aquino administration, signifying the government’s determined commitment to attain sustainable and inclusive growth for the country,” Perfecto said, adding that “the issuance of EO 29, signed together with EO 28 which reconstitutes and reorganizes the Philippine Air Panels, is a clear indication of the government’s focus and dedication to strategic actions aimed at direct economic growth.”
The President signed EOs 28 and 29 last month.
Perfecto said the business group “fully support[s] this aggressive stance on liberalizing civil aviation.”
“Opening our major and secondary gateways to foreign carriers will boost tourism, bolster our competitiveness as an investment location, and open vast economic opportunities in every region in the Philippines. Without this, the targets of attracting six million tourists, collecting $18.5 billion in tourism receipts, and creating three million new tourism jobs by 2016 will likely just end up as—like many other ambitious goals in the past—missed targets,” Perfecto said.
“The absence of air rights reciprocity is not an indication of the absence of any form of reciprocity. The economic potential of EO 29, especially in bringing in more tourists resulting in the generation of new jobs and the stimulation of the local economy, is the reciprocal benefit of the open skies policy that is expected to impact millions of Filipinos,” the MBC official said.
Perfecto said “the success of the tourism industry lies in the realization of EO 29 together with the full implementation of the tourism infrastructure plans laid out by DOT [Department of Tourism] Secretary Alberto Lim,” who was the previous MBC executive director.
By Ben Arnold O. De Vera, Reporter
April 2, 2011
BEYOND approving “pocket open skies,” the government still has a lot of work to do to lift the aviation sector, according to the Makati Business Club (MBC).
“Developing and improving our airports, attracting investments in tourism establishments, upgrading our unique products and services, and addressing the security risks identified by the US Federal Aviation Authority in order to upgrade the country back to Category 1 are the next big steps that we hope the Aquino administration will pursue,” Peter Angelo Perfecto, MBC executive director, said in a statement on Friday.
Perfecto said the MBC “commends President Benigno Aquino 3rd, and his entire economic team, for issuing Executive Order [EO] 29 that authorizes the Civil Aeronautics Board and the Philippine Air Panels to offer and promote more liberalized international aviation agreements with foreign carriers.”
“This policy development is a milestone for the Aquino administration, signifying the government’s determined commitment to attain sustainable and inclusive growth for the country,” Perfecto said, adding that “the issuance of EO 29, signed together with EO 28 which reconstitutes and reorganizes the Philippine Air Panels, is a clear indication of the government’s focus and dedication to strategic actions aimed at direct economic growth.”
The President signed EOs 28 and 29 last month.
Perfecto said the business group “fully support[s] this aggressive stance on liberalizing civil aviation.”
“Opening our major and secondary gateways to foreign carriers will boost tourism, bolster our competitiveness as an investment location, and open vast economic opportunities in every region in the Philippines. Without this, the targets of attracting six million tourists, collecting $18.5 billion in tourism receipts, and creating three million new tourism jobs by 2016 will likely just end up as—like many other ambitious goals in the past—missed targets,” Perfecto said.
“The absence of air rights reciprocity is not an indication of the absence of any form of reciprocity. The economic potential of EO 29, especially in bringing in more tourists resulting in the generation of new jobs and the stimulation of the local economy, is the reciprocal benefit of the open skies policy that is expected to impact millions of Filipinos,” the MBC official said.
Perfecto said “the success of the tourism industry lies in the realization of EO 29 together with the full implementation of the tourism infrastructure plans laid out by DOT [Department of Tourism] Secretary Alberto Lim,” who was the previous MBC executive director.
Open skies
With Due Respect
By Artemio V. Panganiban
Philippine Daily Inquirer
First Posted 21:43:00 04/02/2011
TO BOOST tourism, investments and the economy in general, President Aquino recently issued Executive Order (EO) 29 “authorizing the Civil Aeronautics Board (CAB) and the Philippine Air Panels to pursue more aggressively the international civil aviation liberalization policy.” Popularly known as “open skies,” this policy allows foreign carriers to access our “country’s airports other than the Ninoy Aquino International Airport (NAIA).”
Tourism and civil aviation. Immediately, the country’s air carriers – notably Philippines Airlines and Cebu Pacific – declared that while they fully support the tourism industry, the opening of our skies should not impoverish Philippine aviation. It should be subject to the principle of reciprocity. Simply stated, reciprocity means that the advantages granted to foreign carriers should be matched or reciprocated by similar benefits given to local airlines by the home state of the alien carrier.
Tourism and aviation are natural partners. The colossal tourism success of our neighbors was achieved in close collaboration with their national carriers. The phenomenal growth of tourist arrivals in Singapore, Hong Kong, Malaysia and Thailand is matched only by the spectacular rise of Singapore Airlines, Cathay Pacific, Malaysian Air and Thai International as the very best airlines of the world. Statistics show invariably that national carriers always bring in the most arrivals to their home countries.
By itself, open skies has no track record of automatically bringing in tourists in any country. Several other factors must be concurrently undertaken. For example, do we have enough hotels, resorts and lodging houses of the quality and price appropriate for the type of tourists open skies will bring? Do we have the infrastructures, like airport terminals and roads, to support the arrivals? Is there peace and security in the tourist destinations we want to open up?
Reciprocity and fairness. This paper’s editorial on March 26 stressed that reciprocity, while not mentioned in EO 29, is “only fair and just” and “the country’s representatives [who will implement the EO] must be clear and unwavering on that one condition.”
In his letter to the Inquirer published on March 30, CAB Deputy Executive Director Porvenir P. Porciuncula clarified that EO 29 “clearly recognizes” the constitutional principle mandating “equality and reciprocity” in “all forms and arrangements of exchange.”
He added that Republic Act 776 bars “unjust discrimination, undue preferences or advantages or unfair or destructive competitive practices… Hence, the local air carriers are rest assured that in the implementation of EO 29, the CAB will be fair and just…”
Freedoms, frequencies, etc. Aviation agreements are normally negotiated between countries by “air panels.” After concluding their negotiations, air panels execute Air Services Agreements (ASAs). EO 29 authorizes the Philippine Air Panels to “offer and promote third, fourth, and fifth freedom rights… without restriction as to frequency, capacity and type of aircraft, and other arrangements that will serve the national interest.”
“Third freedom” refers to the right given foreign carriers to disembark passengers coming from their home state to the Philippines. Example: a US carrier brings traffic from the United States to the Philippines. “Fourth freedom” refers to the right given foreign carriers to board passengers from the Philippines to the carriers’ home state. Example: a US carrier carries passengers from the Philippines to the United States.
Most highly desired, “fifth freedom” refers to the right given foreign carriers to pick up passengers in the Philippines destined for a third state and vice-versa. Example: a US carrier bound for the Philippines picks up passengers from Japan and brings them to the Philippines; and then picks up passengers in the Philippines and disembarks them in Japan.
These third, fourth and fifth freedom rights are normally exchanged between countries on strict reciprocity. However, EO 29 allows the Philippine Air Panels “to offer and promote” these freedoms “without restriction [i.e., without reciprocity] as to frequency, capacity, and type of aircraft, and other arrangements that will serve the national interest as may be determined by the CAB.”
Example: Say an ASA with state XX grants designated carriers from both the Philippines and XX third and fourth freedom rights with one frequency a week, via narrow body aircrafts with 100 seats. Despite these limitations and without asking any reciprocal rights, the Philippines may – in the national interest – unilaterally grant XX carriers several more frequencies a week, via wide-body jumbo jets with 400 seats.
As part of the President’s program to enhance the economy, open skies aims to boost tourism and investments. Foreign airlines that bring new tourists untapped by Philippine carriers are truly welcome. However, if they merely pouch on the markets already fully served by local carriers, it would be foolhardy to welcome and reward them via EO 29.
Highfalutin’ rhetoric in praise of reciprocity there will always be. But the reality is in the implementation, given the complexities of aviation freedoms, frequencies, capacities, routes, etc. Like natural resources, civil aviation rights form part of the nation’s wealth that must be carefully and strategically used. Ultimately, the “national interest” standard will be invoked vis-à-vis the ability of a foreign carrier to increase traffic to the Philippines from untapped new markets and routes, and not from stealing the existing traffic painstakingly developed by local airlines.
By Artemio V. Panganiban
Philippine Daily Inquirer
First Posted 21:43:00 04/02/2011
TO BOOST tourism, investments and the economy in general, President Aquino recently issued Executive Order (EO) 29 “authorizing the Civil Aeronautics Board (CAB) and the Philippine Air Panels to pursue more aggressively the international civil aviation liberalization policy.” Popularly known as “open skies,” this policy allows foreign carriers to access our “country’s airports other than the Ninoy Aquino International Airport (NAIA).”
Tourism and civil aviation. Immediately, the country’s air carriers – notably Philippines Airlines and Cebu Pacific – declared that while they fully support the tourism industry, the opening of our skies should not impoverish Philippine aviation. It should be subject to the principle of reciprocity. Simply stated, reciprocity means that the advantages granted to foreign carriers should be matched or reciprocated by similar benefits given to local airlines by the home state of the alien carrier.
Tourism and aviation are natural partners. The colossal tourism success of our neighbors was achieved in close collaboration with their national carriers. The phenomenal growth of tourist arrivals in Singapore, Hong Kong, Malaysia and Thailand is matched only by the spectacular rise of Singapore Airlines, Cathay Pacific, Malaysian Air and Thai International as the very best airlines of the world. Statistics show invariably that national carriers always bring in the most arrivals to their home countries.
By itself, open skies has no track record of automatically bringing in tourists in any country. Several other factors must be concurrently undertaken. For example, do we have enough hotels, resorts and lodging houses of the quality and price appropriate for the type of tourists open skies will bring? Do we have the infrastructures, like airport terminals and roads, to support the arrivals? Is there peace and security in the tourist destinations we want to open up?
Reciprocity and fairness. This paper’s editorial on March 26 stressed that reciprocity, while not mentioned in EO 29, is “only fair and just” and “the country’s representatives [who will implement the EO] must be clear and unwavering on that one condition.”
In his letter to the Inquirer published on March 30, CAB Deputy Executive Director Porvenir P. Porciuncula clarified that EO 29 “clearly recognizes” the constitutional principle mandating “equality and reciprocity” in “all forms and arrangements of exchange.”
He added that Republic Act 776 bars “unjust discrimination, undue preferences or advantages or unfair or destructive competitive practices… Hence, the local air carriers are rest assured that in the implementation of EO 29, the CAB will be fair and just…”
Freedoms, frequencies, etc. Aviation agreements are normally negotiated between countries by “air panels.” After concluding their negotiations, air panels execute Air Services Agreements (ASAs). EO 29 authorizes the Philippine Air Panels to “offer and promote third, fourth, and fifth freedom rights… without restriction as to frequency, capacity and type of aircraft, and other arrangements that will serve the national interest.”
“Third freedom” refers to the right given foreign carriers to disembark passengers coming from their home state to the Philippines. Example: a US carrier brings traffic from the United States to the Philippines. “Fourth freedom” refers to the right given foreign carriers to board passengers from the Philippines to the carriers’ home state. Example: a US carrier carries passengers from the Philippines to the United States.
Most highly desired, “fifth freedom” refers to the right given foreign carriers to pick up passengers in the Philippines destined for a third state and vice-versa. Example: a US carrier bound for the Philippines picks up passengers from Japan and brings them to the Philippines; and then picks up passengers in the Philippines and disembarks them in Japan.
These third, fourth and fifth freedom rights are normally exchanged between countries on strict reciprocity. However, EO 29 allows the Philippine Air Panels “to offer and promote” these freedoms “without restriction [i.e., without reciprocity] as to frequency, capacity, and type of aircraft, and other arrangements that will serve the national interest as may be determined by the CAB.”
Example: Say an ASA with state XX grants designated carriers from both the Philippines and XX third and fourth freedom rights with one frequency a week, via narrow body aircrafts with 100 seats. Despite these limitations and without asking any reciprocal rights, the Philippines may – in the national interest – unilaterally grant XX carriers several more frequencies a week, via wide-body jumbo jets with 400 seats.
As part of the President’s program to enhance the economy, open skies aims to boost tourism and investments. Foreign airlines that bring new tourists untapped by Philippine carriers are truly welcome. However, if they merely pouch on the markets already fully served by local carriers, it would be foolhardy to welcome and reward them via EO 29.
Highfalutin’ rhetoric in praise of reciprocity there will always be. But the reality is in the implementation, given the complexities of aviation freedoms, frequencies, capacities, routes, etc. Like natural resources, civil aviation rights form part of the nation’s wealth that must be carefully and strategically used. Ultimately, the “national interest” standard will be invoked vis-à-vis the ability of a foreign carrier to increase traffic to the Philippines from untapped new markets and routes, and not from stealing the existing traffic painstakingly developed by local airlines.
Monday, March 28, 2011
Tourism groups hail 'open skies'
By Helen Flores (The Philippine Star) Updated March 27, 2011 12:00 AM
MANILA, Philippines - The Federation of Tourism Industries of the Philippines (FTIP) yesterday welcomed the signing of two executive orders allowing a partial open skies policy in secondary airports.
In a statement, FTIP president Alejandra Clemente said Executive Orders 28 and 29 signed by President Aquino last March 14 were aimed at liberalizing the entry of foreign airlines with a view to
increasing air traffic into the country.
* Clemente said connecting the Philippines to the network of countries in Southeast Asia will also create livelihood opportunities in the countryside
* “There are four billion people in the Asia-Pacific Region and at least 151 million outbound travelers per year,” she said.
* “There will be increase not only in air seat capacity but room capacity which will generate jobs and foreign exchange receipts which will help pump prime the Philippine economy.”
* EO 28 is for reorganizing the Philippine Air Negotiating Panel (PNAP) and the Philippine Air Consultation Panel (PACP), and EO 29 authorizes the Civil Aeronautics Board (CAB) and the Philippine Air Panels to pursue more aggressively the international civil aviation liberalization policy.
* EO 29 gives secondary gateways outside of NAIA the opportunity to be connected to international and local markets and bring in tourists directly to destinations that will be developed under the National Tourism Development Plan.
* Clemente noted that EO 29 strengthens EO 219 signed by former President Fidel Ramos which liberalized civil aviation to encourage the entry of more domestic and international players.
* “Cebu Pacific, Air Philippines, Sea Air, Zest Air were established since this EO (219) was implemented. The competition they generated resulted in more services to several and underserved destinations, more choices for the traveling public, and cheaper air fares,” she said.
MANILA, Philippines - The Federation of Tourism Industries of the Philippines (FTIP) yesterday welcomed the signing of two executive orders allowing a partial open skies policy in secondary airports.
In a statement, FTIP president Alejandra Clemente said Executive Orders 28 and 29 signed by President Aquino last March 14 were aimed at liberalizing the entry of foreign airlines with a view to
increasing air traffic into the country.
* Clemente said connecting the Philippines to the network of countries in Southeast Asia will also create livelihood opportunities in the countryside
* “There are four billion people in the Asia-Pacific Region and at least 151 million outbound travelers per year,” she said.
* “There will be increase not only in air seat capacity but room capacity which will generate jobs and foreign exchange receipts which will help pump prime the Philippine economy.”
* EO 28 is for reorganizing the Philippine Air Negotiating Panel (PNAP) and the Philippine Air Consultation Panel (PACP), and EO 29 authorizes the Civil Aeronautics Board (CAB) and the Philippine Air Panels to pursue more aggressively the international civil aviation liberalization policy.
* EO 29 gives secondary gateways outside of NAIA the opportunity to be connected to international and local markets and bring in tourists directly to destinations that will be developed under the National Tourism Development Plan.
* Clemente noted that EO 29 strengthens EO 219 signed by former President Fidel Ramos which liberalized civil aviation to encourage the entry of more domestic and international players.
* “Cebu Pacific, Air Philippines, Sea Air, Zest Air were established since this EO (219) was implemented. The competition they generated resulted in more services to several and underserved destinations, more choices for the traveling public, and cheaper air fares,” she said.
Wednesday, March 23, 2011
Open skies, open season
SPY BITS By Babe Romualdez (The Philippine Star) Updated March 22, 2011 12:00
PNoy’s “pocket” open skies policy – with foreign airlines allowed to expand flights to selected parts of the country – continues to draw skepticism from various sectors. For one, there is the issue of reciprocity. While local carriers are limited to a specific number of flights to other countries, the open skies policy would be like “open season” for foreign airlines since they could virtually fly freely in and out of the country, critics pointed out. Of course, Palace officials are downplaying the objections, explaining that the concept of reciprocity has a very broad definition which is not limited to just how much right will be given foreign carriers vis-à-vis local airlines, but also includes “other” benefits like the number of investments that could come in.
But the biggest question now is whether the Philippines is ready in terms of infrastructure and other support facilities. The Ninoy Aquino International Airport only has two runways and three terminals serving close to 40 carriers –which means some 40 planes taking off every two hours. Private aircraft operators also use the main runways with waiting time at the tarmac sometimes for as long as one and a half hours to get clearance for takeoff. Just imagine the aviation fuel wasted by all these aircraft waiting at the tarmac. There is a suggestion that smaller private planes should be limited to the Cubi point Sangley airport to decongest NAIA. Officials however have clarified that the pocket open skies policy does not include NAIA and that a panel will be tasked to determine which secondary airports will be included in the order – but that’s just like putting the cart before the horse.
Tourism Secretary Bert Lim who has been batting for an open skies policy over the past years is optimistic that visitors will breach the five-million mark by 2016 – but one can only imagine just how that can be done when many of our airports have poorly maintained terminal facilities with no water in the toilets and very poor ventilation. So how do we expect to attract more tourists – both of the local and foreign variety – with such poor standards? Aside from security and good service, airports should offer comfort for travelers – but this is almost impossible to maintain when airports are congested.
And then there is also the Category 2 rating that the country has been slapped with by the International Civil Aviation Organization – which in simple terms means that the country is the same, or not much better than third world African countries. If we really want to attract more visitors, we should work on acquiring a Category 1 status to put the country up to par with international aviation safety standards. But if the administration insists on implementing the open skies policy, then it should look into the possibility of transferring operations to Subic Bay International Airport with its huge passenger terminal and 9,000-foot runway and eventually making the Diosdado Macapagal International Airport or Clark Airport the primary airport for international operations whose parallel runways are capable of accommodating new generation wide-bodied aircraft, with the huge aviation complex (in fact, one of the biggest in Asia) able to sustain even cargo operations.
PNoy’s “pocket” open skies policy – with foreign airlines allowed to expand flights to selected parts of the country – continues to draw skepticism from various sectors. For one, there is the issue of reciprocity. While local carriers are limited to a specific number of flights to other countries, the open skies policy would be like “open season” for foreign airlines since they could virtually fly freely in and out of the country, critics pointed out. Of course, Palace officials are downplaying the objections, explaining that the concept of reciprocity has a very broad definition which is not limited to just how much right will be given foreign carriers vis-à-vis local airlines, but also includes “other” benefits like the number of investments that could come in.
But the biggest question now is whether the Philippines is ready in terms of infrastructure and other support facilities. The Ninoy Aquino International Airport only has two runways and three terminals serving close to 40 carriers –which means some 40 planes taking off every two hours. Private aircraft operators also use the main runways with waiting time at the tarmac sometimes for as long as one and a half hours to get clearance for takeoff. Just imagine the aviation fuel wasted by all these aircraft waiting at the tarmac. There is a suggestion that smaller private planes should be limited to the Cubi point Sangley airport to decongest NAIA. Officials however have clarified that the pocket open skies policy does not include NAIA and that a panel will be tasked to determine which secondary airports will be included in the order – but that’s just like putting the cart before the horse.
Tourism Secretary Bert Lim who has been batting for an open skies policy over the past years is optimistic that visitors will breach the five-million mark by 2016 – but one can only imagine just how that can be done when many of our airports have poorly maintained terminal facilities with no water in the toilets and very poor ventilation. So how do we expect to attract more tourists – both of the local and foreign variety – with such poor standards? Aside from security and good service, airports should offer comfort for travelers – but this is almost impossible to maintain when airports are congested.
And then there is also the Category 2 rating that the country has been slapped with by the International Civil Aviation Organization – which in simple terms means that the country is the same, or not much better than third world African countries. If we really want to attract more visitors, we should work on acquiring a Category 1 status to put the country up to par with international aviation safety standards. But if the administration insists on implementing the open skies policy, then it should look into the possibility of transferring operations to Subic Bay International Airport with its huge passenger terminal and 9,000-foot runway and eventually making the Diosdado Macapagal International Airport or Clark Airport the primary airport for international operations whose parallel runways are capable of accommodating new generation wide-bodied aircraft, with the huge aviation complex (in fact, one of the biggest in Asia) able to sustain even cargo operations.
Friday, December 3, 2010
No need for open skies - CAAP
By Jess Diaz and Mary Ann Ll. Reyes (The Philippine Star) Updated December 02, 2010 12:00 AM
MANILA, Philippines – There is no need for the so-called “open skies” as the country is effectively pursuing a liberalized aviation policy, a representative of the Civil Aviation Authority of the Philippines (CAAP) said yesterday.
Lawyer Joseph Ray Gumabon told the House committee on transportation chaired by Leyte Rep. Roger Mercado that foreign airlines are free to include the country in their routes.
But they do not include the Philippines in their route map because there are not enough passengers, he said.
There is also the safety issue involving aviation infrastructure in the country, which has prompted US authorities to give the country a low safety rating, lumping it with some underdeveloped African nations, he said.
Committee member Eastern Samar Rep. Ben Evardone said he got the impression from the testimony of Gumabon that “we have no need for an open skies policy.”
“In fact, between the US and Manila, for instance, there are enough available airline seats but there are not enough passengers,” he said.
“There are apparently no restrictions for foreign airlines to fly to Clark in Angeles City, Cebu, Davao, and other local destinations,” he said.
For its part, Philippine Airlines (PAL) assured the lawmakers that it would support an open skies policy if it is fair, reciprocal and would not place local carriers at a disadvantage against foreign airlines.
PAL senior assistant vice president for external affairs Ma. Socorro Gonzaga said foreign carriers enjoy adequate access to Philippine skies, debunking claims there is lack of airline seats to accommodate tourists.
She said what the country really needs are more investments in infrastructure, a stable peace and order situation, and positive image abroad to attract tourists.
“It’s not the number of airline seats that is the behind the lack of tourist interest in the Philippines but the country’s negative image abroad, specially in the area of peace and order and security,” she pointed out.
Despite this perception, Gonzaga said PAL, as the country’s flag carrier, has always been at the forefront in developing key markets to boost Philippine tourism.
She said PAL is the only Philippine carrier flying to and from several significant destinations around the world, making it the one of the primary drivers of Philippine tourism.
She pointed out that since the Ramos administration, the Philippines has been liberally granting entitlements to foreign airlines. At present, she said there are 47.4 million seats available to foreign and local carriers.
However, of these available seats, only 10.97 million seats – or 23 percent of total entitlements – were used by foreign and local carriers last year.
Of the 10.97 million passengers that came to the country by air in 2009, only 2.9 million were tourists.
Gonzaga pointed out that these figures belie the claim by proponents of open skies that there is lack of airline seats to accommodate foreign visitors.
“Even without open skies, the six million tourist arrival target of the Department of Tourism by 2016 could be accommodated based on existing airline seats or entitlements available to both foreign and local carriers,” she stressed.
She said seat entitlements to Clark are about 25.6 million; to Cebu, 20.7 million; to Davao, 20.3 million, and to Kalibo, Bohol, Palawan and Laoag, 19.6 million. In Manila, there are 21.2 million seats available yearly.
Gonzaga said the figures effectively debunk the arguments of open skies advocates that the lack of airline seats is the principal reason for low tourist arrivals in the country.
MANILA, Philippines – There is no need for the so-called “open skies” as the country is effectively pursuing a liberalized aviation policy, a representative of the Civil Aviation Authority of the Philippines (CAAP) said yesterday.
Lawyer Joseph Ray Gumabon told the House committee on transportation chaired by Leyte Rep. Roger Mercado that foreign airlines are free to include the country in their routes.
But they do not include the Philippines in their route map because there are not enough passengers, he said.
There is also the safety issue involving aviation infrastructure in the country, which has prompted US authorities to give the country a low safety rating, lumping it with some underdeveloped African nations, he said.
Committee member Eastern Samar Rep. Ben Evardone said he got the impression from the testimony of Gumabon that “we have no need for an open skies policy.”
“In fact, between the US and Manila, for instance, there are enough available airline seats but there are not enough passengers,” he said.
“There are apparently no restrictions for foreign airlines to fly to Clark in Angeles City, Cebu, Davao, and other local destinations,” he said.
For its part, Philippine Airlines (PAL) assured the lawmakers that it would support an open skies policy if it is fair, reciprocal and would not place local carriers at a disadvantage against foreign airlines.
PAL senior assistant vice president for external affairs Ma. Socorro Gonzaga said foreign carriers enjoy adequate access to Philippine skies, debunking claims there is lack of airline seats to accommodate tourists.
She said what the country really needs are more investments in infrastructure, a stable peace and order situation, and positive image abroad to attract tourists.
“It’s not the number of airline seats that is the behind the lack of tourist interest in the Philippines but the country’s negative image abroad, specially in the area of peace and order and security,” she pointed out.
Despite this perception, Gonzaga said PAL, as the country’s flag carrier, has always been at the forefront in developing key markets to boost Philippine tourism.
She said PAL is the only Philippine carrier flying to and from several significant destinations around the world, making it the one of the primary drivers of Philippine tourism.
She pointed out that since the Ramos administration, the Philippines has been liberally granting entitlements to foreign airlines. At present, she said there are 47.4 million seats available to foreign and local carriers.
However, of these available seats, only 10.97 million seats – or 23 percent of total entitlements – were used by foreign and local carriers last year.
Of the 10.97 million passengers that came to the country by air in 2009, only 2.9 million were tourists.
Gonzaga pointed out that these figures belie the claim by proponents of open skies that there is lack of airline seats to accommodate foreign visitors.
“Even without open skies, the six million tourist arrival target of the Department of Tourism by 2016 could be accommodated based on existing airline seats or entitlements available to both foreign and local carriers,” she stressed.
She said seat entitlements to Clark are about 25.6 million; to Cebu, 20.7 million; to Davao, 20.3 million, and to Kalibo, Bohol, Palawan and Laoag, 19.6 million. In Manila, there are 21.2 million seats available yearly.
Gonzaga said the figures effectively debunk the arguments of open skies advocates that the lack of airline seats is the principal reason for low tourist arrivals in the country.
Lawmakers, aviation exec lukewarm to ‘open skies’
By Michael Lim Ubac
Philippine Daily Inquirer
First Posted 04:20:00 12/02/2010
MANILA, Philippines—Lawmakers are supporting Philippine Airlines’ opposition to the open skies policy that the Aquino administration is pursuing in order to increase tourist arrivals.
At a House transportation committee hearing Wednesday on several pending bills to open up the country’s aviation, PAL officials said it would only support a “fair and reciprocal” policy to open Philippine skies to foreign carriers, a sentiment that some committee members said they shared.
According to Ma. Socorro Gonzaga, PAL assistant vice president for external affairs, the number of airline seats was not the reason behind the lack of tourist interest in the Philippines, “but the country’s negative image abroad, especially in the area of peace and order and security.”
Mr. Aquino announced the open skies policy at the opening of the public-private partnerships and infrastructure conference last month.
He told foreign and local business leaders that his government would pursue the full implementation of EO 219 (the liberalization of air travel industry) in international aviation.
The Department of Tourism is targeting to attract 3.1 million tourists this year, progressively increasing to six million by 2016.
Mr. Aquino said the liberalization would be done gradually, starting with “what is called pocket open skies.”
However, PAL and House members at the hearing seemed lukewarm even to a partial open skies policy.
An official of the Civil Aeronautics Board told the hearing that open skies does not ensure more passengers.
Porvenir Porciuncula, CAB deputy executive director, said many foreign airlines have numerous seat entitlements, but are not actually flying to secondary gateways or key cities outside of Metro Manila like Davao, Cebu or Cagayan.
“It is really a function of the market. Open skies will not guarantee foreign airline flights to the country. The more urgent thing is to address infrastructure, facilities, the image of country abroad,” he said.
A representative of the Civil Aviation Authority of the Philippines said that while the country remained in the aviation blacklists, any law that would open up the country’s skies would be toothless because of lingering safety concerns at the airports.
This prompted some lawmakers to raise the possibility of shelving the bills calling for open skies.
Gonzaga also claimed that foreign carriers already enjoyed adequate access to Philippine skies.
She said there are at present 47.4 million seats available to foreign and local carriers, but only 10.97 million seats, or 23 percent, were used last year.
Philippine Daily Inquirer
First Posted 04:20:00 12/02/2010
MANILA, Philippines—Lawmakers are supporting Philippine Airlines’ opposition to the open skies policy that the Aquino administration is pursuing in order to increase tourist arrivals.
At a House transportation committee hearing Wednesday on several pending bills to open up the country’s aviation, PAL officials said it would only support a “fair and reciprocal” policy to open Philippine skies to foreign carriers, a sentiment that some committee members said they shared.
According to Ma. Socorro Gonzaga, PAL assistant vice president for external affairs, the number of airline seats was not the reason behind the lack of tourist interest in the Philippines, “but the country’s negative image abroad, especially in the area of peace and order and security.”
Mr. Aquino announced the open skies policy at the opening of the public-private partnerships and infrastructure conference last month.
He told foreign and local business leaders that his government would pursue the full implementation of EO 219 (the liberalization of air travel industry) in international aviation.
The Department of Tourism is targeting to attract 3.1 million tourists this year, progressively increasing to six million by 2016.
Mr. Aquino said the liberalization would be done gradually, starting with “what is called pocket open skies.”
However, PAL and House members at the hearing seemed lukewarm even to a partial open skies policy.
An official of the Civil Aeronautics Board told the hearing that open skies does not ensure more passengers.
Porvenir Porciuncula, CAB deputy executive director, said many foreign airlines have numerous seat entitlements, but are not actually flying to secondary gateways or key cities outside of Metro Manila like Davao, Cebu or Cagayan.
“It is really a function of the market. Open skies will not guarantee foreign airline flights to the country. The more urgent thing is to address infrastructure, facilities, the image of country abroad,” he said.
A representative of the Civil Aviation Authority of the Philippines said that while the country remained in the aviation blacklists, any law that would open up the country’s skies would be toothless because of lingering safety concerns at the airports.
This prompted some lawmakers to raise the possibility of shelving the bills calling for open skies.
Gonzaga also claimed that foreign carriers already enjoyed adequate access to Philippine skies.
She said there are at present 47.4 million seats available to foreign and local carriers, but only 10.97 million seats, or 23 percent, were used last year.
Thursday, December 2, 2010
Solons cold to 'open skies' policy
Manila Bulletin
By BEN R. ROSARIO
December 1, 2010, 7:53pm
MANILA, Philippines — Assured by government aeronautics agencies that the country already observes liberalized civil aviation regulation, key leaders of the House committee on transportation have suddenly gone cold to measures to adopt an “open skies” policy in the Philippines.
Reps. Ben Evardone (Lakas-Kampi, Eastern Samar), Rene Relampagos (LP, Bohol) and Magtanggol Gunigundo (Lakas-Kampi, Valenzuela) admitted they are not totally convinced an open skies policy is what the country needs to invigorate the tourism industry.
In Wednesday’s public hearing, Evardone and Relampagos entertained the idea of archiving House Bill 1352 and 3312 although both agreed later to give their authors, Reps. Rex Gatchalian (NPC, Valenzuela City) and Aurora Cerilles (NPC, Zamboanga del Sur), the opportunity to defend their proposals in the next hearing.
The positions taken by the solons were apparently triggered by statements issued by officials of the Civil Aviation Authority of the Philippines and the Civil Aeronautics Board during the hearing.
Lawyer Joseph Ray Gumabon of CAAP said “pocket open skies” will be rendered inutile unless the Philippines attains a Category 1 rating for its international aviation safety standards. At present the country is rated at Category 2.
Gumabon noted that a Category 2 status puts the country in the same standard level as many African nations.
The CAAP representative stressed that a holistic approach in aviation standards that would include internationally acceptable security and safety values must first be guaranteed before government opts for an open skies policy to fully liberalize the civil aviation industry.
CAB deputy executive director Porvenir Porciuncula told lawmakers that civil aeronautics is already under a liberalized status because global leaders in commercial aviation have free access to the country.
“Our air agreements already allow flights to most of the points outside Manila. The big markets, Japan, US, China, South Korea, they can operate in Cebu, Davao but what they are looking for is profitability,” said Porciuncula.
The CAB official stressed that the open skies policy should not be taken as a “cure all” to the government’s need to lure more travelers, particularly tourists, to the country.
“Kulang sa atin ay infrastructure and better marketing promotions. Peace and order and air safety is also important,” said Porciuncula.
Aquilino Zapanta of South East Asian Airlines and Socorro Gonzaga of the Philippine Airlines aired opposing positions on the issue.
Zapanta assured the Department of Justice that there are no constitutional infirmities in the bill when it comes to reciprocity.
“We don’t give or provide unilateral traffic rights to any airline into the Philipppines,” Zapanta said.
Gonzaga, PAL senior assistant vice president for external affairs, assured lawmakers that it would support an open skies policy but only if it is fair, reciprocal and would not unduly place local carriers at a disadvantage.
She said foreign carriers enjoy adequate access to Philippine skies, debunking claims there is lack of airline seats to accommodate tourists.
Gonzaga said the country needs more investments in infrastructure, a stable peace and order situation, and positive image abroad to attract tourists.
By BEN R. ROSARIO
December 1, 2010, 7:53pm
MANILA, Philippines — Assured by government aeronautics agencies that the country already observes liberalized civil aviation regulation, key leaders of the House committee on transportation have suddenly gone cold to measures to adopt an “open skies” policy in the Philippines.
Reps. Ben Evardone (Lakas-Kampi, Eastern Samar), Rene Relampagos (LP, Bohol) and Magtanggol Gunigundo (Lakas-Kampi, Valenzuela) admitted they are not totally convinced an open skies policy is what the country needs to invigorate the tourism industry.
In Wednesday’s public hearing, Evardone and Relampagos entertained the idea of archiving House Bill 1352 and 3312 although both agreed later to give their authors, Reps. Rex Gatchalian (NPC, Valenzuela City) and Aurora Cerilles (NPC, Zamboanga del Sur), the opportunity to defend their proposals in the next hearing.
The positions taken by the solons were apparently triggered by statements issued by officials of the Civil Aviation Authority of the Philippines and the Civil Aeronautics Board during the hearing.
Lawyer Joseph Ray Gumabon of CAAP said “pocket open skies” will be rendered inutile unless the Philippines attains a Category 1 rating for its international aviation safety standards. At present the country is rated at Category 2.
Gumabon noted that a Category 2 status puts the country in the same standard level as many African nations.
The CAAP representative stressed that a holistic approach in aviation standards that would include internationally acceptable security and safety values must first be guaranteed before government opts for an open skies policy to fully liberalize the civil aviation industry.
CAB deputy executive director Porvenir Porciuncula told lawmakers that civil aeronautics is already under a liberalized status because global leaders in commercial aviation have free access to the country.
“Our air agreements already allow flights to most of the points outside Manila. The big markets, Japan, US, China, South Korea, they can operate in Cebu, Davao but what they are looking for is profitability,” said Porciuncula.
The CAB official stressed that the open skies policy should not be taken as a “cure all” to the government’s need to lure more travelers, particularly tourists, to the country.
“Kulang sa atin ay infrastructure and better marketing promotions. Peace and order and air safety is also important,” said Porciuncula.
Aquilino Zapanta of South East Asian Airlines and Socorro Gonzaga of the Philippine Airlines aired opposing positions on the issue.
Zapanta assured the Department of Justice that there are no constitutional infirmities in the bill when it comes to reciprocity.
“We don’t give or provide unilateral traffic rights to any airline into the Philipppines,” Zapanta said.
Gonzaga, PAL senior assistant vice president for external affairs, assured lawmakers that it would support an open skies policy but only if it is fair, reciprocal and would not unduly place local carriers at a disadvantage.
She said foreign carriers enjoy adequate access to Philippine skies, debunking claims there is lack of airline seats to accommodate tourists.
Gonzaga said the country needs more investments in infrastructure, a stable peace and order situation, and positive image abroad to attract tourists.
Sunday, October 24, 2010
Belmonte cautions vs haste in adopting open skies policy
By Jess Diaz (The Philippine Star) Updated October 23, 2010 12:00 AM
Speaking to reporters Thursday, Belmonte said the government should first improve aviation and tourism infrastructure before Malacañang or Congress could consider such a policy.
He said modernization of tourism and air transport facilities, not liberalization of air policy alone, could be the key to attracting more foreign tourists to the Philippines.
“It think it is the whole system, not only open skies, that should be considered to make us more competitive,” he said.
Belmonte noted that Malaysia has become a major tourist destination in Asia largely because it offers modern, state-of-the-art facilities to visitors.
He suggested that the P15-billion fund for public-private partnerships in President Aquino’s proposed P1.6-trillion 2011 national budget should cover tourism and aviation infrastructure.
The fund is principally intended for toll roads and airports.
The “open skies” issue has come up every now and then because of the still unresolved labor problem plaguing flag carrier Philippine Airlines (PAL).
Mr. Aquino has repeatedly threatened to consider such a policy if PAL management and the airline’s workers failed to resolve their dispute and the latter declared a strike.
Since national interest was involved, the Department of Labor has decided to assume jurisdiction over the problem, effectively preventing PAL’s workers from striking.
In a recent House budget hearing, Tourism Secretary Alberto Lim advocated a “pocket open skies” policy that would open some parts of the country to foreign carriers.
He said when such a policy was adopted in Clark, tourist arrivals at the free port increased significantly.
He said the same is true in Bali, Indonesia and Siem Reap, Cambodia, and in Vietnam.
He did not say though which parts of the country he wanted opened to foreign airlines.
In the same budget hearing, Negros Occidental Rep. Alfredo Benitez said Chinese tourists from Hong Kong and Macau continued to arrive at the free port in Sta. Ana, Cagayan even in the wake of the bloody Manila hostage-taking incident.
A company in which Benitez has some financial interest operates an integrated leisure and entertainment complex at the free port.
Planeloads of Hong Kong and Macau tourists visit the complex every week, Benitez said.
Speaking to reporters Thursday, Belmonte said the government should first improve aviation and tourism infrastructure before Malacañang or Congress could consider such a policy.
He said modernization of tourism and air transport facilities, not liberalization of air policy alone, could be the key to attracting more foreign tourists to the Philippines.
“It think it is the whole system, not only open skies, that should be considered to make us more competitive,” he said.
Belmonte noted that Malaysia has become a major tourist destination in Asia largely because it offers modern, state-of-the-art facilities to visitors.
He suggested that the P15-billion fund for public-private partnerships in President Aquino’s proposed P1.6-trillion 2011 national budget should cover tourism and aviation infrastructure.
The fund is principally intended for toll roads and airports.
The “open skies” issue has come up every now and then because of the still unresolved labor problem plaguing flag carrier Philippine Airlines (PAL).
Mr. Aquino has repeatedly threatened to consider such a policy if PAL management and the airline’s workers failed to resolve their dispute and the latter declared a strike.
Since national interest was involved, the Department of Labor has decided to assume jurisdiction over the problem, effectively preventing PAL’s workers from striking.
In a recent House budget hearing, Tourism Secretary Alberto Lim advocated a “pocket open skies” policy that would open some parts of the country to foreign carriers.
He said when such a policy was adopted in Clark, tourist arrivals at the free port increased significantly.
He said the same is true in Bali, Indonesia and Siem Reap, Cambodia, and in Vietnam.
He did not say though which parts of the country he wanted opened to foreign airlines.
In the same budget hearing, Negros Occidental Rep. Alfredo Benitez said Chinese tourists from Hong Kong and Macau continued to arrive at the free port in Sta. Ana, Cagayan even in the wake of the bloody Manila hostage-taking incident.
A company in which Benitez has some financial interest operates an integrated leisure and entertainment complex at the free port.
Planeloads of Hong Kong and Macau tourists visit the complex every week, Benitez said.
Subscribe to:
Posts (Atom)