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By Darwin G. Amojelar, Reporter
We asked Avelino Zapanta, president of South East Asian Airlines (SEAIR),
“Are you for the so-called open-skies policy?”
He replied, “Yes.”
“The open-skies regime envisioned provides for
unlimited third and fourth freedom traffic rights with all other
traffic rights subject to negotiation. This conforms with my own
definition of open skies.
“The Asean one is still limited though in the
sense that it covers only the capital cities of the member
countries. I would go so far as covering any and all points any
airline would like to serve. Why curtail the opportunity of other
Philippine cities by preventing foreign airlines to fly there?
“We should all the more ask for it because we
should like the tourist to fly from their true origins in their
countries to the true destinations in the Philippines without having
to go through the hassle of connecting flights in Manila or Cebu.
“I also believe that you open the door and
people are liable to enter. It benefits the country. For every
individual who enters is bound to generate some income for the
country: transport, hotel, food, entertainment, etc., industries
will benefit. Therefore let’s make it easy for them to enter by
relaxing entry rules.
“We should also improve our infrastructure,
our facilities, machineries, materials related to product and
service offerings.
“Do proper and sufficient level of marketing.
By this the airline must produce the products and services designed
to satisfy the needs and wants of the target markets in sufficient
volume and priced within the acceptable limits by the target markets
and distributed to places closest and conveniently accessible to the
target markets.
“Finally, there must be sufficient promotion
to communicate that the product/service exists, at prices that suit
the pocket of the customers and found/available at specific places.
“Today our airlines and our country are doing
half-hearted marketing. The product and the service might be good,
the prices right but there is insufficient distribution and hardly
any promotion.
“Other countries have big budgets in promoting
via global TV channels. For a brief shining moment WOW Philippines
was in CNN and elsewhere. It could not be sustained because of the
limited budget.
“Watch how Malaysia, Thailand and the others
saturate advertising and promotion in all media particularly the
global TV channels.
“Anybody who says open skies is not going to
boost tourism is deceiving himself or wants to keep the market for
only himself. And will do everything to monopolize the market.
“If foreign airlines are competing openly in a
route the likelihood of airfares going down is positive. A monopoly
on a route results in very high airfares, and why not? There is no
competition. Where airfares are low traffic volume goes up. If the
volume is up more players are encouraged to operate. And the country
must not care whoever carries the traffic, local or foreign
airlines. What counts is the number of tourist arrivals is up
because that number multiplies many times and benefits many other
sectors of the economy.
“Local vs. foreign for as long as it is open
skies, the field of competition is fair. Anyone may field any amount
of capacity and the customers will never complain.
“Surprisingly, the lack of fairness is in the
local vs. local competition. For example: Airline designation is a
form of collusion that favors the major carriers. There should be
open, multiple airline designation in all air services agreements
with all countries.
“Another example: No carrier must be allowed
to rent out traffic rights of the country in the guise of
codesharing. When an airline codeshares the traffic rights of the
country and does not launch actual flight operation and allows only
the foreign airlines to operate then the local airline is renting
out traffic rights which belong to the Filipino people and which
might be operated by other local carriers.”
Are you for the EO 500-B? We asked Mr. Zapanta.
“It is difficult to say because EO 500-B is
reportedly being drastically amended. Until we get to know what
would really come out we would never know if it is acceptable or
not. If it would open up the skies of Clark even on third and fourth
with negotiated fifth and other freedoms, plus multiple airline
designation, plus no unilateral codesharing, that should be
acceptable.”
He cited how an airline like Cebu Pacific has
become a world player.
“Cebu Pacific is now boasting that it’s been
recognized as the third fastest growing airline in the world and it
is not even open skies yet. Remove the obstacles, the obstinacies of
the major carriers in the issue of open skies and you will find
Philippine carriers fighting it out in the open arena.”
Aging population
“The world around us is suffering from aging
population, depopulation and shrinking population of cities. They
need migrants to augment the labor force, give care to the aged,
support the economy through consumption. This is estimated to create
traffic in the hundreds of millions in the decades to come. More
startling is the subsequent wave of travelers which will be three or
four times more than the migrants.
“This is what the industry is calling VFR
traffic. These are family members and friends who visit their OFW
family member wherever he is residing instead of the other way
around. This is made possible by the LCC phenomenal pricing that
contributes to create new and voluminous aviation traffic.
“A big part of this will come from the
Philippines. And this is perhaps an argument for non-imposition of
birth control if we suffer the same fate as Singapore and China who
have junked their controlled family size due to the developing
concern of shortage of people to churn the economy.”
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