Tatad seeks policy review as airlines group plans pullout

Sen. Francisco Tatad called yesterday for a thorough review of the country's aviation policies following the decision by the 23-member Association of Asia Pacific Airlines (AAPA) to relocate its regional headquarters from Manila to Kuala Lumpur, Malaysia in April.

Tatad, chairman of the Senate committees on foreign relations and on labor, urged the country's aviation and tourism officials to persuade the AAPA to reconsider its decision.

"We do not need another black eye at this time when we are trying to look our best," he said in a statement.

Tatad said an urgent review of aviation policy is needed to make sure the Philippines becomes a regional hub for airport operations and a major tourist destination during the first decade of the 21st century.

He expressed concern over the reports that the AAPA, which has been based in Manila since its founding, decided to move to Kuala Lumpur because it was dissatisfied with the recent conduct of the country's aviation policy.

Tatad said he was informed that during the AAPA's board of governors meeting last November, all members, except Philippine Airlines (PAL), voted for immediate relocation.

The other members of the association are Air New Zealand, Air Niugini, All Nippon Airways, Ansett Australia, Asiana Airlines, Cathay Pacific Airways, China Airlines, Dragonair, Eva Air, Garuda Indonesia, Japan Airlines, Korean Air, Malaysia Airlines, Qantas Airways, Royal Brunei Airlines, Singapore Airlines, Thai Airways International and Vietnam Airlines.

"No announcement has been made, and no reason will probably given," Tatad said. "But they are not too happy with the way air services are being handled."

He said the AAPA feels that PAL has taken over national policy-making as far as aviation and tourism are concerned.

"They do not see this as a very healthy development," he said. "The country's aviation policy must define PAL's role in promoting inland and inbound tourism."

Tatad explained that PAL's policy should flow from the nation's aviation, transport and tourism policies, instead of the other way around.

"We must know at all times which is the tail, and which is the head," he said.

The senator noted that in a recent article in Orient Magazine, AAPA director general Richard Stirland criticized the Philippine position in its air dispute with Taiwan as something that "runs counter to the entire development of air services in the Asia Pacific region over the past 25 years."

The article continued: "It is unrealistic to expect foreign airlines not to compete, in the longer term, for all the traffic they can carry within their allotted capacity, to whatever destinations the consumers want. It is unrealistic to expect the Philippines to be an isolated island of predetermination, capacity stagnation and high fares in a sea of growth and liberalization, and it is unrealistic to expect general economic progress at home without excellent air links with the globe.

"It follows that ultimately the national carrier must step up to the task, or step aside. We wish PAL well, but respectfully suggest that the current path is a cul-de-sac which will be injurious to everybody's interests, not least those of PAL, if pursued to its bitter end."

Air services between the Philippines and Taiwan were suspended on Oct. 2 last year after the Civil Aeronautics Board (CAB) unilaterally canceled the 1996 air agreement between the two countries.

The suspension lasted for four months until the Philippines and Taiwan decided to sign a partial air agreement, which was approved by President Estrada last Jan. 28.

Flights between Manila and Taipei resumed last week.

CAB had accused Taiwanese carriers of flying passengers from Manila to the US, in violation of a standing agreement.

PAL stopped flying to Taiwan on Sept. 30 last year, a day before the government suspended an air agreement with Taiwan over alleged unfair competition by Taiwanese carriers.