Aquino: PHL to implement ‘pocket open skies’ policy

President Benigno Aquino III on Thursday said the government will implement a 1995 executive order liberalizing aviation industry by adopting a "pocket open skies" policy. In his speech at the public-private partnership (PPP) conference in Manila, Aquino said the government will "pursue the full implementation" of Executive Order No. 219 the administration of then President Fidel V. Ramos issued to boost tourism and investments via a more liberal policy on international aviation. "Our national development requires promoting an open and competitive international aviation sector that enables Philippine and foreign air carriers to expand their operations, maintain a strong Philippine-based aviation industry, and ensure international connectivity in order to allow Philippine and foreign air carriers to plan and make long-term investments in the Philippine market," Aquino said. "In the past, we liberalized telecommunications, trade, and foreign investments. The change in the country’s investment policies has been a crucial factor in building up confidence in the economic prospects of the country. This is what we will do with aviation," said the president. He noted that EO No. 219's impact on domestic tourism has been "dramatic" because passengers have since "enjoyed a wider range of choices and travel opportunities." In an interview with reporters after his speech, Aquino said the government will implement EO 219 starting with a "pocket open skies" policy, the details of which will be threshed out in the implementing rules and regulations (IRR) that will be issued soon. Aquino has repeatedly warned the government may impose an open skies policy as flag carrier Philippine Airlines grapples with labor and financial problems. EO No. 219 provides that the Philippines should have at least two international airlines designated as flag carriers. It says that the exchange of traffic rights and routes with other countries will be based on national interest, "which shall include value for the Philippines in terms of promoting international trade, foreign investments and tourism, among others" including the principle of reciprocity or "the exchange of rights, freedoms, and opportunities of equal or equivalent value." The Civil Aeronautics Board (CAB) will determine what constitutes “national interest" in aviation, as well as decide on charges, airfares, and the frequencies or new routes for foreign carriers. EO 219 empowers the CAB to authorize chartered flights and non-scheduled services and to give the license to operate — for a year — air services for the development of routes, destinations and gateways. Aquino said the country needs to maximize its tourism potential, noting that on the average , only three million tourists visit the Philippines each year, while neighboring Malaysia and Thailand attract around 14 million. Apart from liberalization, the government is also working on a new campaign to "re-brand the country as a tourist destination." The Department of Tourism has launched a new slogan, "Pilipinas Kay Ganda," but it was not received well by the public and lawmakers. As part of massive efforts to boost tourism, the tourist police are now back in force, and the government is expanding airport runways and terminal capacities in areas that have the potential to grow as tourist hubs, Aquino said. The Philippine tourism industry has suffered setbacks stemming from recent events, such as the Aug. 23 hostage crisis where eight Chinese nationals were killed, as well as the negative travel advisories by six countries, telling their nationals of possible terrorist attacks in the Philippines. The Bureau of Immigration, however, said tourist arrivals in the first 10 months of 2010 increased compared to the same period last year. — LBG/VS, GMANews.TV