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.