By GENIVI FACTAO

The members of the Association of South East Asian Nations have agreed that unlimited flights between capital cities in the region will begin next month.

Asean leaders also target a single Asean aviation market by 2015.

The country’s airline executives see many advantages in the plan. The country’s flag carrier, the Philippine Airlines has been very vocal against opening up Philippine skies without demanding reciprocal rights.

"Any policy that opens up the Philippines to foreign airlines while restricting the growth of RP airlines is shortsighted", said Rolando G. Estabillo, vice president, corporate communications department.

Estabillo also pointed out that local airlines will be competing with other airlines that are government owned and subsidized.

Avelino L. Zapanta, president of South East Asian Airlines and former president of PAL, said that open skies will work for smaller airlines which can serve limited markets.

All the local airlines are bracing themselves to compete once the passenger and cargo services in the region are fully liberalized.

PAL said Asean open skies will open up opportunities for expansion in various markets.

Estabillo said that PAL has already expanded flights to Singapore, Bangkok, Jakarta, and may consider further expansion upon delivery of brand new Airbus A320 aircraft.

"Other ASEAN countries are not being required to privatize their major airlines and relinquish government control, subsidy and protection of these state-owned carriers —— thus retaining their unfair advantages in competing with legitimate business enterprises like PAL," he said.

"We are competing with no government subsidies or bailouts. Instead, we have to rely on our own dynamism, agility in marketplace competition, enhancement of services, and moves to develop new strategic markets," Estabillo said.

PAL, stressed that any policy that opens up the Philippines to foreign airlines while restricting the growth of RP airlines is shortsighted.

PAL cited the EO 500 series of policies that allow unlimited flights by foreign airlines to Clark and Subic, without requiring that RP airlines be given equal opportunity to fly unlimited flights in the same manner.

"Happily, RP government has been negotiating a series of new air agreements in recent months, with Malaysia, Thailand, Hong Kong, Canada, Iran, Finland, New Zealand, Macau, Cambodia, etc., that allow reciprocal access for both RP and foreign airlines to Philippine airports, especially Clark. When all parties work together in partnership, the national interest is served well," Estabillo claimed.

Zapanta explained that big players with big aircraft will not fly to some of the opened routes. "Small players can penetrate the routes that have been opened more easily than the big ones. For example, the first stage where only 3rd & 4th freedom are liberated and to capital cities only. How many big ASEAN players are flying to ASEAN capital cities like Hanoi, Phnom Penh, Vientiane, Naypyidaw, and Bandar Seri Begawan? None or one or two. Why? The big players with big aircraft will not fly to small destinations. So why don’t the small players fly there? It’s either they are not designated or the routes are not open. Now with ASEAN open skies, the small players can start small in small routes with smaller aircraft, something the big ones won’t do," he explained.

Zapanta said the ASEAN open skies will lead to the introduction of new air sectors to be opened by the smaller operators who are enabled by open designation that the treaty espouses. This should lead to expanded commercial aviation operation within the region.

Passengers and shippers see the open skies policy would help bring down the cost due to competition.

PAL readily accepts the challenges not only in growing in the ASEAN but North Asia and North America markets, as well.

PAL is said to be the biggest RP airline serving the ASEAN market with flights operating 56 times a week to ASEAN destinations.

PAL offers more flights per week on each of the contested ASEAN routes:

PAL flies 7 times weekly to Jakarta, 14 times weekly to Bangkok, 28 times weekly to Singapore, and 7 times a week to Ho Chi Minh City (Saigon).

Zapanta on the other hand, explained that it is high time that the RP Civil Aeronautics Board (CAB) allow more entrants into the industry because the other countries will do the same.

"If we limit the opportunity to PAL and Cebu Pacific no RP carrier will help pioneer the small routes..," Zapanta said.

The open skies policy, will definitely benefit our overseas Filipino workers.