RP carriers buck GMA stand on ‘open skies’

Philippine carriers protested yesterday plans by the government to grant foreign airlines "full access" to two international airports.

Flag-carrier Philippine Airlines (PAL), Cebu Pacific Air, Air Philippines, Asian Spirit and Pacific East Asia Cargo Airlines called an executive order the President is about to sign a "threat to the national interest."

A full page advertisment in all major daily newspapers said this would give foreign airlines "full access" to two international airports north of Manila, a privilege they claimed no other country would grant Philippine carriers.

However, the President, according to Socio-economic Planning Secretary Romulo Neri, is likely to push through with the signing of Executive Order (EO) 500-B which grants foreign airlines "full access" to Diosdado Macapagal International Airport and the Subic Bay International Airport. Neri told reporters he was surprised the country’s major airlines were protesting Mrs. Arroyo’s plan to sign the EO when the move would actually draw more tourists and create more business opportunities for local carriers.

The order also permits foreign airlines to pick up passengers at the two airports for onward flights to third country destinations.

Local carriers said this would allow foreign carriers to "operate their own network of international flights from bases in making them equivalent to Philippine air carriers in all but name. "

"By bestowing a favored competitive position on foreign airlines, the (order) would have a serious adverse impact on other routes operated by Philippine carriers," the airlines said.

They charged that the change would put some P150 billion in investment and 15,000 jobs at risk and also imperil the long-term growth of the tourism sector.

The carriers called on President Arroyo to "refrain" from passing the EO and proposed a dialogue with her.

Neri, however, said the President is fully aware of the concerns of the local carriers but even the provinces near the two airports, such as Pampanga and Zambales are already enjoying the economic benefits of an increase in tourist arrival. 

The Philippines, Neri said, is attracting only about three million tourists annually. "If the country could match the tourist arrivals of Thailand and Malaysia of 13 million and 16 million, respectively, the country’s unemployment and underemployment would be virtually wiped out," he said.

"The beauty of that (influx of tourists) it reaches out to the rural areas that is why even rural folks will benefit because many of our tourism spots are in the far-flung areas," he said.

"Local airlines should be more broadminded. In the end if we liberalized our airline policy and more tourists come in, their negotiating stand will be stronger," he added.

Neri expressed surprise that Lance Gokongwei, president and chief executive officer, of Cebu Pacific also signed the petition when the influx of tourists would benefit his family’s retail and mall business.

He said more tourists also mean greater demand for local flights.

"Could you imagine all those people going to our malls, all the flights that have to be served to Boracay, to Davao, to Cebu?" Neri said. "They want reciprocity but their ability to negotiate better reciprocity will be more powerful if more tourist come in."

Neri said PAL would also benefit from the EO since the local carrier is also engaged in airline catering and has a joint venture with German airline Lufthansa on airline maintenance.

He added that Mrs. Arroyo believes that reciprocity does not mean "airline-to airline reciprocity." "Lets say you want reciprocity with Japan, the reciprocity there could be Japan gives us more aid, more ODA that’s reciprocity enough."

 "In the case of Singapore, you’ll open up certain lines of their product to more Filipino products. That’s reciprocity enough," he said. – with AFP