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Saturday, April 12, 2008

 

Travel agencies say no to ‘open skies’

 
WHILE the entire nation is focused on the rice crisis and lawmakers have themselves trained on the issue of the Spratly’s Group of Islands, the administration has secretly effected an open skies policy at the Diosdado Macapagal International Airport (DMIA) in Clark and at the Subic Bay International Airport (SBIA) through Executive Order (EO) 500-A.

The said Executive Order provides for unlimited foreign carrier flights into the DMIA and SBIA from a carrier’s home country without restrictions on capacity or type of aircraft.

The apparent open skies was revealed and sharply condemned by the National Association of Independent Travel Agencies (NAITAS).

In a statement sent to The Manila Times, the group assailed EO 500-A, saying that such order should immediately be revoked.

“They can call it by any other name like ‘pocket open skies,’ but the fact remains that the executive order does not require reciprocal benefits for Philippine carriers. We are appealing to the government to scrap EO 500-A,” Naitas chairman Emeritus Robert Lim Joseph said in the statement.

According to Joseph, a drafted Malacañang directive would amend E0 500-A and restore a full open skies regime in Clark and Subic.

He argued that the Palace edict, E0 500-B, is being pushed by tourism-related businesses in Central Luzon, investors and locators in Clark’s export processing zone, and some local government officials.

Among the new investors at Clark is Singapore Airlines Engineering Company, the engineering arm of Singapore Airlines. The foreign firm, together with Cebu Pacific, is building an $81-million repair and overhaul facility.

“Unlike liberalization policies pursued by most foreign countries worldwide, EO 500-A doesn’t adhere to the multi-lateral trade concept. The EO did not revoke open skies, but merely clarified the implementing guidelines for EO 500,” Joseph said.

President Gloria Arroyo signed EO 500 in January 2006, unilaterally proclaiming open skies at Clark and Subic. But in August 2006, just 8 months after the initial liberalization, the President amended EO 500 with EO 500A.

Under EO 500 as amended by EO 500-A., the Philippines has a unilateral open skies policy for foreign carriers that guarantees unlimited third and fourth freedom traffic rights, and additional fifth, sixth and seventh freedom on a case-to-case basis, according to the Civil Aeronautics Board.

Third and fourth freedom pertain to back and forth flights between two countries, by the carriers of both countries. Fifth, sixth and seventh freedom involve market access by carriers beyond Clark to third countries—i.e., Singapore-Clark-Los Angeles or Singapore-Clark-Tokyo—operating the third and fourth freedom routes between two other countries.

Joseph urged aviation authorities to look into the reasons that forced several US and European airlines to declare bankruptcy due to record fuel prices, a softening economy and cutthroat competition.

“Most of these airlines are subsidized by their governments and protected by Chapter 11 [the right to declare the company insolvent] and yet they can’t cope with the difficult conditions,” he said. “This would all the more be difficult for our local airlines who are operating on their own and under a trade policy that is short on equality and reciprocity.”
-- Francis Earl A. Cueto

   

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