Cebu Pacific bucks liberal ‘Open Skies’ policy

Cebu Pacific Air (CPA), like Philippine Airlines, is not in favor of a liberal "Open-Skies" policy.

Instead, CPA prefers a continued "rationalized progressive liberation based on actual demand for third and fourth freedom traffic which should be pursued on a country-by-country basis."

In a letter to Director Eloisa A. Lim of the Economic Mobilization Group, CPA noted that an open-skies concept reflects substantial liberalization of air services between two countries without any limitations with respect to the volume of traffic, frequency or regularity of service or the type of aircraft of the designated airlines.

However, CPA pointed out that the Philippines is a fledgling economy and its aviation industry has not matured to viability because of many factors, including inherent structural, operating, and regulatory deficiencies.

In its letter, CPA said Philippine carriers, should not be expected to survive, much less meet, the onslaught of foreign competition accompanying a true open-skies regime at the current state of the aviation industry.

Instead, CPA said, there must first be a formal structure affording the local airlines a level-playing field among themselves enabling them to build up their capacity, technology, and resources, before they can be required to collide head-on with foreign carriers and their vast resources.

As such, CPA supports a proposal that a second Philippine carrier should be designated under the relevant air services agreements.

CPA has already made known its intention to seek the authority to be the country’s second carrier.

However, CPA claims that in order for the designation to be meaningful, all other operating permits such as that carrier’s certificate of authority and seat frequency entitlements must be granted.

Additionally, the communication of the designation to the foreign governments by note verbal must be immediately undertaken.

CPA wants to be able to take on the international routes that were previous granted to Grand Air which has ceased to operate.