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While a few have dismissed the Aquino government’s pocket open skies policy as a failure, some find such judgment too early because the Philippines has just begun getting more planes fly over its skies and more tourists enjoy its sun, sea and sand.
Last March, the Aquino government adopted a pocket open skies policy through Executive Order 29 (EO 29), which liberalizes the country’s secondary airports other than the Ninoy Aquino International Airport (NAIA) by allowing more foreign carriers to fly and bring in more tourists. It also reorganized the Philippine air negotiating panel that deals with bilateral air service agreements through EO 28.
Carmelo Arcilla, Civil Aeronautics Board (CAB) executive director, said, “The full effect of open skies policy remains to be seen. But its progressive implementation has led to a marked increase in tourist arrivals in the Philippines or flights to and from the country."
He told GMA News Online the open skies policy has also seen the emergence of more Philippine carriers and the expansion of their services. “In recent years, we have seen more and more carriers operating to other gateways such as Clark (Pampanga), Kalibo (Aklan) and Cebu."
Singaporean, Malaysian and Australian carriers have also launched operations in Clark’s Diosdado Macapagal International Airport such as AirAsia, Inc., Air Asia Berhad, Tiger Airways and Jestar. “So, it’s not accurate to say that the implementation of open skies policy is a failure," he said.
Travel agents said freeing up the country’s skies is timely. “By decongesting the airport in Manila, it is but natural that we use other gateways so that international carriers may fly and bring in tourists to our country," said Aileen Clemente, president of the Philippine Travel Agencies Association (PTAA), which represents the country’s travel sector with about 150 members of outbound travel agencies and inbound tour operators.
Open Philippines
In an exclusive interview with GMA News Online, Clemente, also president of Rajah Travel Corporation, said opening the country’s skies is also symbolic. “That the Philippines is open, not just for global aviation business, but also for international trade."
Moreover, the open skies policy encourages competition in the airline industry. “Free-market competition forces airlines to improve their services and drive down prices. The benefits ultimately redound to the travelers and will serve as incentive for them to fly to the Philippines," said Benito Bengzon Jr., assistant secretary of the Department of Tourism (DoT).
He told GMA News Online that more flights into the country mean more exchange of tourists and goods as open skies agreements increase both passenger and cargo traffic between countries.
The geography of the country, which is an archipelago, should also be considered in promoting tourism through open skies. “We are unlike our ASEAN neighbors which share a common border. So access to our country is most heavily from air, followed by sea. Thus, we have to encourage and support our carriers to be competitive in the market," Clemente said.
Some airlines fear job and revenue losses as a result of a liberalized airline industry. But Clemente thinks the airlines are up to the competition. “I’ve seen their plans. Each foreign or local carrier faces these challenges all the time, along with fuel costs. Any business faces this."
The Department of Labor and Employment has been meeting the airlines to determine the labor needs of the industry. It is also working with the Department of Education on ways to ensure a constant supply of work force by improving their education and skills.
State policy since 1995
The Philippines has progressively adopted the open skies policy since the administration of President Fidel Ramos through EO 219 issued in 1995. EO 219 allows multiple airline designation and unlimited freedom traffic rights based on reciprocity and national interest.
Arcilla said EO 219 paved the way for the entry of carriers such as Cebu Pacific, Air Philippines, Zest Airways and SEAIR.
The Philippines has bilateral air agreements with 65 countries. It recently conducted talks with Indonesia, Malaysia, Sri Lanka and Papua New Guinea.
Other ASEAN countries have also adopted the open skies policy. “Singapore has embraced open skies to promote Singapore as a hub. However, Indonesia and the Philippines, with their strategic location and large population, are taking a progressive approach to liberalizing their skies," he said.
He said the ASEAN is aiming at establishing an ASEAN Single Aviation Market, similar to that of the European Union on a step by step approach.
The Philippines and other ASEAN members have signed the ASEAN Multilateral Agreement on Air Services and the ASEAN Multilateral Agreement on the Full Liberalization of Air Freight Services, which took effect in January 2010.
Arcilla cited as an example the sharp increases in tourist arrivals in Kalibo, Aklan, where the premier resort Boracay island is located, as a result of direct international flights to its airport.
But he said allowing more flights does not automatically translate to increased tourist arrivals. “Infrastructure limitations, peace and order, connectivity problems, among others, may also be primary factors in encouraging tourists to come to the Philippines."
Sun, sea and sand
The government aims to double tourist arrivals in the country from 3.52 million in 2010 to more than 6 million by 2016 as part of the National Tourism Development Plan.
Bengzon said the Philippines still attracted 3.52 million tourists last year despite the Manila hostage crisis in August 2010.
“There was a marked drop in visitors in months following the incident. But strong performances by our other markets in East Asia, our best performing region, and elsewhere helped us surpass our targets," he said. The East Asian market includes China, Japan, Korea and Taiwan.
Government data show a 27% decrease in the number of Hong Kong tourists from January to June this year, which totalled 56,458 compared to 71, 867 in 2010.
To ensure the safety of tourists, Bengzon said the government is implementing the Tourism Oriented Police for Community Order and Protection Program, which has trained more than 1,000 police officers now deployed in various destinations across the country.
He said the government has also stepped up its marketing efforts in Hong Kong. “DoT led the county’s participation in the International Travel Expo, one of the largest travel and trade events in Hong Kong. We have also organized a series of familiarization trips for the Hong Kong media."
The government has also appointed a marketing representative for Hong Kong and Macau to intensify the country’s drive to regain the confidence of Hong Kong tourists.
2. PAL cuts selected domestic and int'l flights for time being
MANILA, Philippines — Philippine Airlines (PAL) is reducing the number of selected domestic and international flights for a limited period as the flag carrier prepares for the transfer of its catering, ground handling and call center reservations units to third party service providers on October 1, 2011.
In a statement, PAL disclosed that the number of domestic flights would be temporarily reduced by about 30 percent while international flights would be cut provisionally by 12 percent ahead of its long-awaited spin off or outsourcing program.
PAL spokesperson Cielo Villaluna said domestic routes with reduced flight frequencies on certain days involve 14 stations – Cebu, Davao, Bacolod, Iloilo, Butuan, Cotabato, Cagayan de Oro, Dipolog, Kalibo, Laoag, Legazpi, Tacloban, Tagbilaran and Zamboanga.
On the other hand, the 11 international points to be affected by the flight frequency reduction are Hong Kong, Bangkok, New Delhi, Macau, Singapore, Los Angeles, Vancouver, Guam, Sydney, Melbourne and Incheon (from Cebu). All other PAL flights remain as scheduled.
Villaluna assured the public that only select PAL flights would be suspended for a few days, and would resume on varying dates in October and November as operations normalize after the spin off or outsourcing. She said all other PAL flights remain operational albeit on other available schedules. PAL may also merge some flights using bigger aircraft.
She stressed that the flight suspension on selected routes seeks to prevent sudden, unplanned cancellations and avoid passenger inconvenience. She said it would be easier for the flag carrier and its service providers to handle reduced number of flights as they adjust and transfer the functions of its three non-core units.
Villaluna said Malacañang, the Department of Labor and Employment, Department of Transportation and Communication, Manila International Airport Authority, Civil Aviation Authority of the Philippines and Philippine National Police have been informed of the airline’s temporary flight reduction and other contingency measures.
PAL will set up temporary cashier counters at convenient locations for ticket refunds and other transactions. All penalties shall be waived. The airline will also set up remote city check-in counters near the Ninoy Aquino International Airport (NAIA).
Passengers checking in at these remote counters shall be issued boarding passes and shuttled to NAIA Terminal 2 on air-conditioned buses. Priority will be given to those without check-in luggage.
“PAL is adopting contingency measures during the transition period to shield its customers from unnecessary inconvenience and hassles. We’re not taking any chances.
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