SIA to boost RP in Europe

Singapore Airlines (SIA) clarified yesterday that its $1-million cooperation agreement with the Department of Tourism (DOT) involves the promotion of the Philippines in Europe where Philippine Airlines (PAL) does not operate.

SIA issued the statement in reaction to recent complaints that the agreement gave it several concessions which were allegedly disadvantageous to the Philippines and its national carrier.

"The agreement signed in September last year was the result of a process that began in 1998 in the midst of the Asian economic crisis. The DOT and SIA agreed that SIA's extensive coverage of Europe made us an ideal partner to promote the Philippines in European markets, especially as PAL does not operate any services to Europe," the airline said in the statement.

SIA operates 64 weekly flights to 13 European cities.

The tourism promotion agreement covers Europe, Australia and Singapore. It was signed by Tourism Secretary Gemma Cruz-Araneta and SIA executive vice president Michael Tan on Sept. 9 last year.

Last week, the Gabay ng Mundo sa Kaunlaran Foundation (Gabay) filed charges against Araneta before the Office of the Ombudsman, accusing her of unethical practices in entering into the deal with SIA.

Gerardo del Mundo, the group's head, said Araneta gave SIA concessions which he claimed were grossly disadvantageous to the Philippines. These included greater air access to the Philippines, the promotion of Singapore as a stopover or gateway destination instead of Manila, the preservation on an exclusive basis of SIA's position in the Philippine market and SIA's receiving information relating to the activities of its competitors, including PAL.

For these and other services, Del Mundo said the DOT will receive a $1 million contribution from SIA mostly in the form of discounted tickets, cargo rebates and others.

Araneta has welcomed the probe by the Ombudsman, saying a full investigation will prove that the department under her leadership did not commit an illegal act.

Araneta belied the accusations of the foundation, saying the agreement was in compliance with an executive order aimed at establishing the domestic and international civil aviation liberalization policy.

"President Estrada himself wants to have the progressive liberalization policy implemented." she said. "That is why the DOT embarked on this kind of agreement."