Foreign groups back open-skies EO

MANILA,Philippines—The Joint Foreign Chambers is backing the Aquino administration’s implementation of an open-skies regime through EO 29, saying this would better allow market forces to come into play and ultimately boost tourist arrivals in the country.

In a statement issued Tuesday, the group said the policy was in line with President Aquino’s promise that “the Philippines is open for business under new management.”

EO 29, which ushers in a “pocket” open skies regime, eases restrictions on foreign airlines in international airports outside Metro Manila. It gives the Civil Aeronautics Board authority to grant additional frequencies or capacities to foreign carriers, but still prohibits cabotage.

Cabotage refers to a foreign airline’s transport of people or goods between two or more points within the country.

While local carriers Philippine Airlines and Cebu Pacific Air were staunchly opposing the implementation of the EO, saying it would give foreign carriers undue advantage, the foreign chambers said its benefits to the country were far-reaching.

Aimed at increasing tourist arrivals, the group said EO 29 would result in more jobs and revenues for people directly and indirectly involved in the tourism service industry.

The group noted that for every foreign tourist who visits the country, an average of $1,000 is spent and one direct or indirect job is created, many of which are in rural areas and less developed provinces.

“We wish to extend full support for President Aquino’s visionary leadership on civil aviation embodied in EO 29. The policy allows market forces to determine supply and demand of seats to secondary gateways throughout the country,” the JFC said. “With this new policy, the administration has taken a giant step toward its goal of doubling annual tourist arrivals to more than six million by 2016.”

Apart from pocket open skies, the group also sought the removal of the common carriers’ tax and the gross Philippine billings tax “to unleash the creativity and dynamism of the private sector.”

“Continuation of these taxes risks losing some of the present international air services into the country, as well as deterring new ones, and departs from standard international practice,” the JFC said.

“With these proactive reforms of the Aquino Administration, we can look forward to continued rapid expansion of the aviation market in the Philippines, more competitive pricing and better service, and new routes to drive tourism, investment and employment,” it added.