Aquino seeks an open skies' policy in Philippines

Manila: President Benigno Aquino will soon declare an open skies' policy in various areas of the Philippines while Congress has not yet legislated the proposed liberalisation of air transport in the country, sources said.

The open-skies policy will be declared in Laoag in northern Luzon; in Cebu, central Philippines; and in Davao and Zamboanga in the southern Philippines.

These areas will be secondary destinations for foreign airlines, Executive Secretary Paquito Ochoa said. Local airlines such as the Philippine Airlines (PAL) and Cebu Pacific retain their exclusive rights to serve domestic routes.

Aquino's executive order will prohibit cabotage, an airline's right to carry passengers between two domestic points, Ochoa explained.

In a speech last Thursday, Aquino said: "Once this is implemented we expect more international airlines to enter the market.

"This will redound to thousands of additional jobs which in turn will provide decent living to thousands of Filipino families."

He also added that his executive order on an open skies policy will consider the effect of air liberalisation on local carriers such as PAL and Cebu Pacific.

"I can assure you that as we liberalise aviation it will be undertaken in a way that will open up opportunities to competitive and world class domestic carriers like Cebu Pacific," Aquino said. The announcement comes at a time when PAL is suffering from a labour row.

Last Monday, Congressman Rex Gatchalian filed House Bill 1601 which called for "pocket open-skies policy," adding the liberalisation of the air traffic will boost tourism.