Cebu Pacific vice president Peggy Vera said Philippine carriers can fly as many as 47 times per week to Japan and back depending on the aircraft used. The CAB has given all these entitlements to PAL.
These frequencies entitlements are called coefficients under the air agreement with Japan. One coefficient is equivalent to one round-trip flight using CEB’s B757’s; 1.5 coefficients for an Airbus 330; and two coefficient for a B747.
Based on PAL’s winter schedule (Oct. 35 to March 27, 2004) submitted to CAB recently, PAL needs only 45.5 coefficients. The unused 1.5 coefficients should not go to waste. "Those extra frequencies we can fly can mean unquantifiable foreign exchange income for the tourism sector and jobs, especially in the countryside," Vera said.
"Cebu Pacific needs only two coefficients to fly twice a week to Japan. CAB will be serving public interest by allowing us to fly to Japan," she said, adding that CEB’s service to South Korea and Hong Kong gave passengers an alternative service.
Last year, CEB had asked for entitlements to Japan, requiring the setting up of airtalks since PAL had laid claim to all available coefficients. After the airtalks between the Philippines and Japan in October 2002, the two countries agreed to add four new coefficients to the entitlement pool. CEB asked for two of these entitlements, but CAB gave all four new coefficients to PAL which already had 43, giving PAL a 100-percent share of the market as far as Philippine carriers are concerned.
CEB contested the award and filed a motion for reconsideration last April, but this has not been resolved.
Vera said a one-airline policy was set aside with the promulgation of EO219 in 1995 spelling out the country’s policy of liberalization in the air transport sector. "When a few months later, CEB entered the local market for instance, we introduced innovations including low fare and no frills, that forced other airlines to adjust their fares. The flying public was the winner."