Vol. XXI, No. 158 [ Business World Online ]
Wednesday, March 12, 2008 | MANILA, PHILIPPINES
GOKONGWEI-LED Cebu Pacific is up in arms over the government’s decision to allow a Hong Kong carrier to operate from the Diosdado Macapagal International Airport (DMIA) in Clark, again calling for "reciprocity" with respect to other countries when it comes to an "open skies" policy.
In a statement yesterday, the country’s leading domestic carrier questioned the rights given to Hong Kong Express, which started Clark-to-Hong Kong flights last week, noting that the foreign carrier took advantage of Executive Order 500A, which virtually opened Clark to foreign carriers.
There is no such privilege for Filipino carriers in other countries, Cebu Pacific pointed out. "It is unfortunate that a Filipino airline does not have the same privilege a foreign airline enjoys in the Philippines," Cebu Pacific Vice-President for Marketing Candice Iyog said.
"The favor has not been returned. In our case, the foreign governments turned down our application to fly from Clark, making it a nonviable fourth hub for [Cebu Pacific] at this time. We would like to see reciprocity and fairness," Ms. Iyod added.
Cebu Pacific claimed it could surpass its target of seven million domestic and international passengers this year if allowed to fly the Clark-Hong Kong route matching Hong Kong Express’ service.
Last June, Cebu Pacific expressed intentions to make the DMIA its fourth hub in the country apart from Manila, Cebu and Davao. But this was derailed when its applications to fly from Clark to Asian destinations Hong Kong, Macau, Bangkok and Taipei were turned down due to lack of entitlements. Only Singapore’s aviation body allowed the budget carrier to operate from Clark.
Lucio Tan-led Philippine Airlines (PAL) echoed Cebu Pacific’s reservations on the government’s open skies policy, saying this will affect PAL once it decides to mount flights from the former American air base.
In a telephone interview, PAL Vice-President for Corporate Communications Rolando G. Estabillo said the current setup grants more rights to foreign carriers than domestic airlines.
"The problem is the lack of reciprocity. We think it would have been better if there is reciprocity for all parties on a bilateral platform. That (unilateral open skies policy) will adversely impact us once we start operating in and out of Clark," Mr. Estabillo told BusinessWorld.
Mr. Estabillo said PAL intends to operate at the DMIA, which is being groomed to be the country’s next international gateway as soon as the facilities like a passenger terminal and catering services are developed.
Officials from the Department of Transportation and Communication and from the Civil Aeronautics Board could not be reached for comment. — M.G.S. Ramos
