Airline association warns RP against carrier limits
Airline association warns RP against carrier limits
MANILA (AFP): The Asia-Pacific airlines association on Monday cautioned the Philippines against limiting the access of foreign carriers in the country, saying consumers should be left to make a choice.
The statement by the Association of Asia Pacific Airlines (AAPA) was issued amid an aviation row between the Philippines and Taiwan which followed Manila's decision to terminate an air agreement with Taipei for alleged violations.
In a statement, the AAPA secretariat criticized Manila's abrogation of the accord. Government officials had earlier said the move was aimed at, among others, protecting ailing flag- carrier Philippine Airlines (PAL).
"In a competitive environment, it is up to each airline to be as commercially aggressive, as dynamic and as inventive as it can be in the market it serves," the association said.
It said that "no government can lay claim to any segment of the market, on behalf of its own airlines, even if that segment originates in its own country."
PAL, saddled by over US$2.2 billion of debt, is struggling to stay in the air under a painful rehabilitation plan.
The Manila-based association, which counts 19 Asia-Pacific carriers as members, said entering into an air agreement with other airlines means giving them equal opportunity in the home market.
"In agreeing to reciprocal exchange of rights, an airline is giving up its exclusivity in its home market for equal access to the markets of its competitors overseas," the AAPA said.
"Once a government has agreed to an exchange of such rights, it cannot seek to limit foreign access to any particular segment of traffic, or challenge consumer choice," it added.
The Philippines two weeks ago suspended its air accord with Taiwan, accusing China Airlines and Eva Air of certain violations, including exceeding the number of passengers it should ferry by using larger aircraft not authorized by Manila's Civil Aeronautics Board.
The Taiwanese carriers were given until September 30 to operate in the Philippines unless a new agreement is negotiated. Taiwan officials threatened to retaliate by encouraging tourists to avoid the Philippines and halt the hiring of Filipino workers there.
President Joseph Estrada said Tuesday he was hopeful a "fruitful solution" could be worked out between Manila and Taipei to resolve their aviation dispute.
"Hopefully we will reach a very fruitful solution," Estrada told reporters Monday.
Estrada on Saturday met with Liu Tai-ying, director of the Kuomintang business management committee, who was in Manila.
Liu, along with another Kuomintang member Hong Dow Lin, discussed the row with Estrada, presidential palace sources said. Meanwhile, the Philippines on Monday opened a new 5.3 billion peso (US$136 million) terminal at Manila airport to ease congestion and bolster tourism.