Airlines seek reciprocity in "Open Skies" policy

CEBU, Philippines - The unresolved issue on the implementation of the Executive Order 29, otherwise known as the “Open Skies” policy, may push to unite the local airline industry, in order to give a much stronger voice and ultimately be heard.

 Local carriers led by Philippine Airlines (PAL) and Cebu Pacific (CEB) reiterated their stand to seek amendments of the EO 29, saying if this will be implemented “as is” it could eventually bring the death of local carriers' international operations.

In an interview with PAL assistant vice president for government affairs Jose E.L. Perez de Tagle, he said that although the Lucio-Tan led airline is not against the “Open Skies” policy, it has to be implemented fairly.

The industry is asking the government to provide reciprocity air access, not just a unilateral agreement.

“We are left with our hands tied behind our back,” Perez de Tagle said adding that while the EO 29 is good, if the government will not offer a bilateral package on air access, foreign airlines may monopolize the overseas routes.

Because of this, initial talks had been held by local carriers including PAL, CEB, Air Philippines, and Zest Air, to have their voice heard by the Aquino administration. Although, he said that there is no formal unified appeal from the industry yet, but the players may decide to put their acts together to save the local industry.

Likewise, the Gokongwei-owned CEB reiterated its stand for amendments of the current Executive Order.

“Since the beginning, we have made it clear that we will never support one-way skies, which is what EO 29 represents. With one-way skies, the Philippines gives foreign carriers’ unlimited access to our airports, while our own carriers get nothing in return,” said Candice Iyog, CEB vice president for marketing and distribution.

The government through, the Department of Tourism (DOT-7) recently hosted a road-show in Cebu concerning the EO 29 or “Open Skies Policy”, despite explanation made by lawyer Jose Claro S., Tesoro, local carriers maintained their stand for the EO to be amended and give consideration to the lament of the local carriers.

After all, Perez de Tagle said it’s the local carriers which are willing to invest their money to promote the Philippines to other countries, and expanding international air access services without asking subsidy from the government.

In some countries, Philippine carriers can no longer add flights because “we are using all our air rights. However, EO 29 allows foreign airlines from those countries to operate as many flights as they want to Cebu, or Davao or Cagayan de Oro. Foreigners get unlimited rights but Filipino carriers are limited,” Iyog said.

According to Iyog, the Philippine airspace should be recognized by the DOT and the Civil Aeronautics Board as a very valuable asset.

“We remain hopeful that we use this asset to further the long-term interest of our country with ‘Open Skies’ agreements that benefit foreigners and Filipinos alike,” Iyog added.

Records showed that in Cebu for instance, there are a total of 71 foreign airlines that have air access rights, but only six or seven foreign airlines are currently using it.

On March 14, 2011 Aquino signed the EO 29 which authorizes the air panels and the Civil Aeronautics Board to pursue more aggressively the international civil aviation liberalization policy in secondary gateways. (FREEMAN)