RP, U.S. hold talks on open skies pact

RP, U.S. hold talks on open skies pact

MANILA (DPA): Philippine and United States aviation
authorities on Monday held exploratory talks on an open skies
agreement between the two countries, but no breakthrough was
reached in the three-hour discussion, officials said.

"It was a productive exchange of ideas, but no commitments
were made," Philippine Transportation Undersecretary for Aviation
Alan Tan told reporters after the meeting. "It was basically to
keep both our minds open."

Tan said that while the Philippine panel was "uncommitted", it
asked the nine-member U.S. team to submit a formal proposal to
the Civil Aeronautics Board, which would form an air negotiating
panel to study the suggestion.

He added that local carriers would have to be consulted once a
formal proposal was made by the U.S.

The U.S. panel was headed by Dan Fantozzi, director for
aviation negotiations of the U.S. State Department, and Ed Opler,
deputy director of the Office of International Aviation, who flew
in from Japan on their way back to Washington.

Last week, Philippine aviation authorities warned that the
country was not yet ready for an open skies agreement, stressing
that foreign airlines could "wobble up" domestic companies.

Air Transportation Office chief Adelberto Yap said local firms
would not be able to compete with their foreign counterparts,
which have "better aircraft and equipment".

"We are on the losing end," he said. "The foreign airlines
could eventually gobble up smaller local airlines."

Edgardo Manda, general manager of Manila's Ninoy Aquino
International Airport, also said that an open skies policy was
"not feasible at this point" because of the country's sluggish
economy.

"It actually depends on how the economy will recover," he
noted.

While the Philippines has adopted a liberalized air policy in
the past few years, the exploratory talks with the United States
were the first concerning open skies.

Under an open skies policy, routes, capacity, flight
frequencies and pricing of airlines are not subject to any
restrictions.

If Manila and Washington agree to forge an open skies deal,
all U.S. airlines can fly passengers and cargoes to anywhere in
the Philippines and even a third destination. Philippine carriers
will be given the same privileges.

Yap said such an agreement would actually be disadvantageous
to local airlines companies.

"Local airlines will most likely not be able to supply all the
flights to their counterparts' countries," he said.

He noted that even the country's pioneer flag carrier,
Philippine Airlines, would have a hard time in keeping up with
its foreign counterparts.