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Business

Why the mad rush for bilateral talks with SIA?

SPYBITS - The Philippine Star

Many are wondering why the government seems to be in a mad rush to hold bilateral aviation talks with Singapore Airlines this week considering that barely a year ago, airlines were given the right to increase flights to about two million seats per week on the Singapore-Manila route, with Singapore’s airlines accorded “open skies” privileges to all other airports in the country.

To think neither Singaporean nor Filipino airlines have maximized the use of the two million seats, so why the unseemly haste to hold talks with the city-state that is our competitor in the multi-billion-dollar business of travel and tourism marketing, with both countries vying for the attention of tourists from China, Japan, Korea, Europe and other countries?

Admittedly, Singapore already enjoys great advantages that include a squeaky clean rep while the Philippines is only just beginning to play in the big leagues again as far as travel and tourism are concerned.  On top of the “More Fun in the Philippines” campaign and our efforts to improve safety and security, we are building the Entertainment City complex of casinos, with the City of Dreams being the latest example. 

Our airlines are also investing in new routes and new aircraft even as government struggles to beef up airports and air navigation systems in a bid to make the Philippines a strong regional player in travel and tourism. Unfortunately, the Department of Tourism seems to be the driving force behind the mad rush for air talks with Singapore, perhaps not fully understanding the reality that these sensitive aviation negotiations can potentially disrupt the Philippines’ investments in tourism over the long run. 

Perhaps it is high time DOTC asserted its authority as the legitimate negotiator of aviation agreements and the guarantor of long-term growth and development of the country’s international air network.  Let’s not forget, our flag carrier – Philippine Airlines – holds the distinction of being the first, and therefore, oldest airline in Asia, and no matter what one may say, Filipinos consider the carrier as a source of pride and feel right at home flying with PAL. As one observer noted, we must protect our own.

Apple takes a big bite of the market

Any doubts about Apple’s domination was totally erased after it set a record as the first US company to close with a market capitalization of over $700 billion the other day – more than double the market cap of Microsoft which is placed at $385.4 billion. Shares rose 1.9 percent to $122 last Tuesday following Apple’s recent announcement that it was partnering with First Solar to convert a bankrupt sapphire manufacturing facility to a solar-powered data center.

Executives say Apple will get even bigger when the Apple Watch is launched this April – cementing its domination in the smart gadget market. Latest data indicate that the Cupertino, California-based giant has captured over 90 percent of the profit for the smartphone industry, with sales driven by the iPhone cycle as more and more users start switching to iPhone 6. Reports say that of the $21-billion profits recorded by the smart gadgets industry for the last quarter, Apple took a huge bite with $19.4 billion or 93 percent. In the last quarter alone of 2014, over 74 million iPhones were shipped all over the world. 

‘Incorruptible ombudswoman’

At the recent Constitution Day celebration spearheaded by Philconsa president and Leyte Rep. Martin Romualdez with ombudsman Chit Carpio-Morales as guest speaker, she told me she is prepared to go anytime but is also ready to finish her job and stay on until her term ends in 2018.

A lot of Filipinos are pinning their hopes on the former Supreme Court Associate Justice whom they see as an “incorruptible ombudswoman,” known for being fearless in going after the corrupt, whether in government or the private sector. Last December, the Office of the Ombudsman slapped PNP director general Alan Purisima with a six-month preventive suspension following allegations of corruption and irregularity over a contract between the PNP and a courier service for the delivery of firearms licenses.

Purisima is in even more hot water over the botched PNP Special Action Force operation in Mamasapano last Jan. 25 that resulted in the death of 44 SAF members. Ombudsman Morales says the suspended PNP chief – who has resigned from his position as top cop – could be possibly charged with usurpation of authority for allegedly giving the green light for the operation despite the fact that he was under suspension at the time.

While some government officials were noticeably trying to exonerate the embattled former PNP chief, Morales has not discounted the possibility of Purisima’s criminal and administrative liability. She says, however, that in fairness to this administration, the President has not tried to interfere with her work. In any case, people are hopeful that she will be able to do a lot in helping eradicate corruption regardless of who is in power in government.

Spy tidbit: More Americans renouncing citizenship

Latest data disclosed that a record number of Americans have renounced their citizenship, with a total of 3,415 individuals giving up their US passports and long term residence in 2014. In the last five years, over 10,000 Americans living abroad have opted to relinquish their citizenship following the implementation of the Foreign Account Tax Compliance Act or FATCA that requires citizens to disclose the existence of offshore bank accounts and pay taxes on income derived overseas. The US is the only country within the OECD that requires US citizens to pay taxes regardless of their place of work or residence. 

Meantime, a Republican senator from Texas has proposed a bill entitled the “Expatriate Terrorist Act” that will automatically revoke the citizenship of Americans who work with terrorists since it is clear they no longer uphold their pledge of allegiance, the senator said.

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Email: [email protected].

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ALAN PURISIMA

APPLE WATCH

CHIT CARPIO-MORALES

CONSTITUTION DAY

DEPARTMENT OF TOURISM

ENTERTAINMENT CITY

EXPATRIATE TERRORIST ACT

FIRST SOLAR

FOREIGN ACCOUNT TAX COMPLIANCE ACT

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