|
The subsidy being provided by the governments of
other countries to their airlines creates an uneven playing field in
an open skies regime, which will eventually distort the competition,
said the chairman emeritus from a group of independent travel
agencies.
Robert Lim Joseph of the National
Association of Independent Travel Agencies, explained that at
present, all Southeast Asian carriers, except for Philippines
Airlines, are either fully or partially owned or subsidized by their
governments.
“We can go ahead with full
liberalization of the local aviation industry, but a level playing
field must first be created by eliminating subsides and all other
forms of state aid to airlines of other countries,” Joseph said.
Singapore Airlines, Thai Airways
International, United Arab Emirates, Qatar Airways and Malaysian
Airlines are known to receive government subsidies. United Arab
Emirates is even 100-percent owned by the Dubai government.
Besides the staggering cost of
airline fuel and increasing tax burdens, Joseph said airlines have
become vulnerable to a distorted market caused by state aid.
“Competitors of Filipino
carriers, 90 percent of them, in the Asean region, Middle East and
the United States are supported by their governments,” he
stressed.
Country members of the
Association of Southeast Asian Nations (Asean) agreed in 2004 to
adopt an open skies policy in the region, beginning with unlimited
flights between Asean capital cities by December 2008.
The European Union Commission had
reportedly investigated foreign carriers that received state aid
that resulted in unfair pricing practices.
Joseph urged authorities to set
safeguards that would ensure a level competitive field, including
measures against anti-competitive and discriminatory behavior of
some foreign governments subsidizing their airlines.
He said that despite the state
subsidies, these carriers actually don’t offer cheap rates.
“What they are promoting as cheap are only in paper considering
the currency adjustment factors, fuel surcharges and insurances.
What has become cheap are only the local flights, especially so with
the new aircrafts which are fuel-efficient.”
Joseph said local carriers have
no room for error, unlike those subsidized foreign carriers that are
cushioned from business failure.
Japan Air Systems and All Nippon
Airways were given $760 million in emergency government loans in the
aftermath of the 9/11 terrorist attacks. Korean Airlines and Asiana
Airlines were given $195 million in financial aid by Seoul.
--Francis Earl A. Cueto
|
