Estrada orders signing of new air pact with Taiwan
Estrada orders signing of new air pact with Taiwan
MANILA (DPA): Philippine President Joseph Estrada on Sunday ordered the country's representative office in Taiwan to immediately sign a new air agreement to resume direct commercial flights between Manila and Taipei.
Estrada said his directive was "in pursuit of a broader national interest".
Acknowledging that a new air services agreement may result in some disadvantages to Philippine Airlines (PAL), Estrada said the benefits far outweigh the concerns of the flag carrier.
"I want this new service agreement signed immediately because this will serve the greatest good of the greater number," he said.
There have been no direct commercial flights between Manila and Taipei since October 1999, when the Philippines canceled a 1996 air services agreement with Taiwan amid allegations of violations of Taiwanese carriers.
A government statement said the two sides were scheduled to sign a new air pact on Oct. 10, but Estrada said he wanted this done sooner.
The statement said the resumption of direct flights "will not only help reinvigorate trade relations between Manila and Taipei but will also benefit thousands of overseas Filipino workers who are employed in Taiwan".
"With the resumption of the Manila-Taipei flights, trade relations can normalize between the Philippines and Taiwan which will in turn help spur the country's economic growth," it added.
The air dispute had centered on the maximum number of passengers that EVA Air and China Airlines would be allowed to service every week, as well as the granting of "sixth freedom rights" or the authority to offer flights to a third-country destination.
The Taipei Economic and Cultural Office in Manila and the Manila Economic and Cultural Office in Taipei have already agreed on a compromise on the issue of seat entitlements per week for the airlines involved. The figure has not been announced.
PAL majority shareholder Lucio Tan has threatened to sell his stakes in the company if the new air agreement was signed, complaining that the pact would put the flag carrier in the disadvantage.
Media reports said Estrada has offered to sell PAL to the Evergreen group of companies, owner of EVA Air, in a bid to finally end the dispute and to revive the ailing flag carrier, which shut down for several days in 1998.
But presidential spokesman Ricardo Puno said no such offer was made when Estrada met with Evergreen chairman Chang Yung Fa on Friday. Chang had confirmed the offer during a news conference on Saturday.
"There is no offer," Puno said. "I don't know what he (Chang) is saying. I talked with the president this afternoon. We are talking about the air dispute. This has nothing to do with Tan's reinforced interest to sell his PAL shares."
However, Taiwan's Central News Agency reported earlier Sunday that Estrada had proposed that EVA purchase PAL in a meeting with Chang, who had flown to Manila Friday at Estrada's invitation.