Gokongweis call for multilateral 'open skies' policies

Gokongwei-led Cebu Pacific has called on the government to make good on its promise to keep the liberalization of the country’s air rights from being skewed in favor of foreign airlines at the expense of local firms. In a speech on Tuesday, Cebu Pacific president and CEO Lance Gokongwei said that the company supports the government’s efforts to develop the local tourism sector, with an “open skies" regime as a key enabler and one of the drivers for economic growth. But the airline reiterated its call for reciprocity in the implementation, urging the government to grant perks only to airlines from countries that do the same for carriers from the Philippines. “We have always been supportive of Aviation liberalization, including ‘Open Skies’ agreements with other countries," Gokongwei said in a statement. Today, the number of flights between two countries depends on a pre-determined limit agreed on by two governments. Under an “open skies" regime, foreign airlines will be allowed to fly to the Philippines as much as they want, with the only limit being airport space. We were a major beneficiary of domestic aviation de-regulation, and we have never been shy about our support for a liberalized aviation industry," he added. However, he said that the company had to break “corporate tradition" by expressing concern over the lack of reciprocity under Executive Order 29, which mandates the implementation of the liberalized rules. “If foreign carriers are given unlimited access on routes to and from the Philippines, we believe it is only fair, that Cebu Pacific and other local airlines be given unlimited access to and from the Philippines to these carriers’ home countries," he said. He said that this would result in a more competitive but fair playing field that would benefit consumers with better services and lower fares. Cebu Pacific noted that the lack of reciprocity has made it easier for foreign airlines to fly to the Philippines than for local airlines to fly abroad —despite the government having been more liberal in granting additional seat entitlements in the past few years. For instance, requests by local airlines to mount additional flights to Japan have repeatedly been snubbed. But recently, All Nippon Airways was allowed to mount new direct flights to Tokyo. Gokongwei said the Philippines should consider entering into a bilateral “open skies" regime with Japan, similar to the arrangement between Malaysia and Indonesia. He also called on the government to fast-track the signing of the multilateral “open skies" deal with other Southeast Asian nations. This new deal will open up secondary airports in the region. An existing deal covers only main airports or Manila for the Philippines. The government should also consider a similar deal with Middle Eastern countries and Europe, where no Philippine carrier currently flies. The Makati Business Club (MBC) has said the government should ignore the pleas by local airlines. The “open skies" regime, the group formerly led by current Tourism Secretary Alberto Lim, would attract additional investments in the country, outweighing the disadvantages enumerated by local firms. — TJD, GMA News