Indonesian Political, Business & Finance News

RP, U.S. sign air pact

RP, U.S. sign air pact

MANILA (AFP): The Philippines and the United States signed an aviation agreement yesterday expanding cargo rights to U.S. carriers but deferring the implementation of an "open skies" policy.

"The accord is a partnership in the truest sense because it broadens opportunities for carriers on both sides -- for the Philippines and for the United States -- by increasing the number of cargo and passenger flights," U.S. Transport Secretary Federico Pena told a news briefing here.

The signing finalized bilateral agreements agreed in Washington in September.

The accord was earlier attacked by critics, among them flag- carrier Philippine Airlines (PAL), which said that the granting of extensive cargo rights to more U.S. carriers would aggravate losses already suffered by PAL.

However, Transportation and Communications Secretary Jesus Garcia said PAL had won "more than what it wanted" since Washington had granted a seven-year deferment of the open skies policy for unrestricted U.S. flights in the Philippines while PAL had only asked for six years.

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