Local aviation industry in distress

An uncertain future hounds the country’s aviation sector. From the airlines to cargo forwarders to aviation workers, the implementation of the RP-US Air Transport Agreement (ATA) scheduled for October 2003 is causing alarm to aviation stakeholders.

Other sectors dependent on the industry like tour and travel agencies, resorts, hotels and inns, restaurants, entertainment centers and transportation are equally apprehensive.

The RP-US ATA will pave the way for the implementation of an open skies regime between the two countries. Under the ATA, the US can mount flights to the Philippines without limitation on frequencies, the size of the carriers and the number of destinations. On the other hand, Philippine carriers can fly to only nine entry points in the US with 16 possible destinations but they are not allowed to pick up passengers from either the entry point of the destination.

The lopsidedness of the arrangement, the industry fears, will result in the collapse of local airlines and eventually the sectors dependent on them.

Thus, it is no wonder if an aviation industry organization composed of tour and travel operators, cargo forwarders and brokers and other tourism-related businesses is moving heaven and earth to delay the implementation of the RP-US ATA until such time the country is prepared for open skies.

"Like the SARS scare, the RP-US ATA is creating alarm among industry stakeholders," the Save Our Skies (SOS) Movement said.

The SOS has taken the cudgels to expose the perils of open skies. "We just want to protect our local industries," said SOS president Robert Lim Joseph, who is at the forefront of the campaign against open skies.

"We are against open skies not only with the US, but also with other countries because we believe our aviation industry is not yet prepared for it," he said.

Joseph disagreed with the arguments of open skies advocates, particularly the foreign-funded lobby group Freedom to Fly Coalition (FFC), that open skies will boost tourism and result in lower air fares.

"Data have proven that there is no relationship between availability of seat and frequencies and tourism," he said. "While air access is part of the equation, there are other important factors like infrastructure, peace and order, security and image that affect tourism."

He said open skies looks good on paper but in reality it will spell the death of the local aviation industry. "When local airlines close down because they could not compete with the mega carriers of other countries, expect air fares to shoot up just like what happened in 1999 when Philippine Airlines temporarily stopped operations," Joseph stressed.

He criticized FFC members for posturing as nationalists but are in fact lobbyists for foreign interests in the aviation industry. "The FFC was already unmasked in the Senate for being a lobbyist for foreign interests."

He revealed that the entire membership of the FFC could fit into a small van and does not represent any sector of the aviation industry.

Magaling lang sila (FFC) sa grandstanding. Kami sa SOS mahigit isang libo ang miyembro at kami ang unang tatamaan kung i-aadopt natin ang open skies, Joseph said.

We are not against foreign investors. Pwede natin magamit sila under the spirit of cooperation. Huwag nating hayaan na tayo maabuso kasi there are 1.3 million people every year coming into the labor stream. Saan natin ilalagay ang mga iyan kung lahat ng industriya natin ay namamatay na," he pointed out.

Because of its concern for the survival of local aviation industry and labor, the SOS took active part in tackling industry-related issues.

The group exposed anomalies in the Ninoy Aquino International Airport (NAIA) Terminal 3 project and the Civil Aeronautics Board, the lopsided RP-Singapore and RP-Korea air agreement and the illegal acts of former Transportation Secretary Pantaleon Alvarez and former CAB Executive Director Manuel San Jose.

It was the first to bring to government and public’s attention the lobbying efforts of the FFC on behalf of foreign airlines and the ties of CAB board member Alberto Lim to FFC.

"The SOS is made up of travel and tour operators, cargo forwarders, brokers and other airline-related group. Our business are dependent on the airline industry. So if our airline industry collapses we will also be dislocated," Joseph said.

"This is the reason why the SOS has been very vocal on issues that will affect the viability of the airlines industry. We have to protect the Filipino interests first. And we are doing this for our children and grandchildren," he added.