Draft ‘open skies’ rules seek to address reciprocity

Draft rules implementing the "pocket open skies" policy seek to appease local carriers’ concerns regarding reciprocity but also maintain that national interest will be paramount in setting air services deals. Reciprocity, in this context, refers to local carriers being granted the same air rights the Philippines allows foreign airlines. The proposed implementing rules and regulations (IRR) in this case gives the foreign carriers’ home states one year to approve identical privileges. "The [Civil Aeronautics] Board, in case of failure to reach mutual agreement to grant reciprocal rights to Philippine carriers within 12 months from the grant ... may revoke the said grant," the draft IRR states. The rules, however, also state that operations without reciprocal rights can be allowed if the board "deems it to promote national interest and/or mutual benefits." Candice A. Iyog, Cebu Air, Inc. vice-president for marketing and distribution, said that the draft IRR was not enough. "It does not address the need for reciprocity ... we will raise all our concerns next week during the hearing scheduled for the [draft IRR]," Ms. Iyog said. An April 19 public hearing has been scheduled. Ms. Iyog said the airline was consistent in its support for the "pocket open skies" policy and in also demanding "equal opportunity". "All we’re asking for is the opportunity to compete. If it’s not granted, we will not be able to be in the position to compete with these airlines without the rights to fly in their country while foreign carriers can fly freely to the Philippines," she said. Concurring, Philippine Airlines spokesperson Cielo C. Villaluna said, "We welcome the fact that the government recognizes need for reciprocity in air rights negotiations. However, what is in the national interest may be susceptible to varying interpretations". "As such, PAL has always maintained that in all negotiations, all stakeholders like airlines, the travel and tourism sector, and others must be consulted as to what is in the best interest of all," she added. President Benigno S. C. Aquino III last month ordered the further opening of Philippine skies to foreign airlines in the aim of promoting investments and trade and providing travelers more choices. Two executive orders (EOs) were issued by Malacañang: EO 29 authorizing the Civil Aeronautics Board and negotiators to "pursue more aggressively the international civil aviation liberalization policy" and EO 28 which again splits the country’s negotiating panel into two. Carriers were demoted to being observers in air service agreement negotiations, prompting the Fair Trade Alliance (FTA) yesterday to call for their reinstatement. "It’s important that the representatives of the local carriers are there ... If the representatives are there, reciprocity will be ensured," FTA senior program officer Ember R. Cruz said in a briefing. They called for a review of EOs 28 and 29 but Palace spokesperson Ricky A. Carandang said "We are not likely to revise." -- K. A. Martin with A. M. G. Roa, BusinessWorld