CLARK FREEPORT – Amid reports some sectors are now in full battle gear against a proposed aviation open skies policy, the Clark Investors and Locators Association (CILA) issued here yesterday a statement urging Pres. Aquino to go on with the issuance of an executive order (EO) declaring such policy in all secondary airports nationwide.
“It is time for us to stop counting the number of seat entitlements but rather, the jobs that will be created as a result of freer and uncalibrated aviation markets,” said a CILA statement signed by its president Francisco Villanueva Jr.
He lauded the recent announcement of cabinet members, who met here recently with local businessmen, that the President is set to sign an executive order enforcing open skies policy in all secondary airports all over the country, except in Metro Manila. The policy would open such airports to more foreign airlines.
Finance Sec. Cesar Purisima said the President was slated to issue the EO before the year ends, while Tourism Sec. Alberto Lim said he expected the President to issue a series of EO’s that would lead to the implementation of a total open skies policy.
“It’s job and wealth creation for the millions of Filipinos penalized by present restrictive policies that protect only the few in this country,” CILA said, as it described the open skies police as “very pro-Filipino.”
CILA was referring to sectors which have reportedly launched intensive efforts to block open skies policy and insisting that such policy would disadvantage Filipino-owned airlines.
But CILA said “it is time for us to stop counting the number of seat entitlements. It is time for us to start counting the jobs that will be created as a result of freer and not calibrated aviation markets. It’s job and wealth creation for the millions of Filipinos penalized by restrictive policies that protect only the few in this country.”
The CILA statement cited the benefits of open skies policy after the issuance of EO No. 500 in January 2006 that liberalized the aviation policy at the Diosdado Macapagal International Airport (DMIA) here.
It noted that among other things, the EO took “advantage of DMIA’s strategic location and infrastructure by inviting the airlines to connect DMIA to markets that matter the most without being constrained by the restrictive provisions of agreements.”
“We never bothered counting the seat entitlements. We only bothered with the business opportunities brought about by the growth of DMIA,” CILA said.
It noted that before EO 500 was issued, the DMIA had been a “neglected airport for 10 years since Pres. Ramos declared it as the future premier international gateway of the country in 1994.”
“But after open skies policy, although limited in nature, was enforced at the DMIA, the average 44 international flights in 2003, the flights skyrocketed to 5,326 in 2009, an increase of 12,000 percent”, CILA noted.
“Passenger traffic grew by 70 times from just 7,880 to 558,937 in the same period. Passenger traffic from January to October 2010 already reached half a million, 20 percent higher than its level the year before. Thousands of these passengers are overseas contract workers who regularly visit their families due to the attractive prices of low-cost carriers,” CILA also said.
CILA said “tourists who account for 37 percent of the passenger volume also benefit from these lower fares.”
CILA attributed all these to “the liberal air access policy that we, stakeholders of Central Luzon, supported and continue to support.”
“In 2005, new regional and foreign carriers like Tiger Airways and Air Asia saw something precious in using Clark as a gateway. They entered Clark under the liberalized charter policy of the Civil Aeronautics Board, a policy that was unilaterally pursued by the Philippine government,” CILA recalled.
It also noted that “they could not enter under the restrictive provisions of the so-called bilateral air agreements. We did not force other countries to adopt the same policy. We did not ask for a seat for seat exchange. The government saw the need to develop secondary gateways that have been thirsty for growth. This was a very pro-Filipino policy.”
CILA also recalled that “from 2007 to 2009, a number of air agreements were amended” and that was when “the local carriers responded to competition and started to invest in Clark.”
It noted that “reciprocal benefits followed.” ”From just being an ordinary airport, DMIA gradually transformed into a service logistics complex.”
“There came locators such as SIA Engineering, Gate Gourmet and the Global Logistics Gateway whose investments amount to at least US$300 M. There are new locators such as The Medical City that will generate jobs. The number of hotel rooms in Clark and its environs increased from only less than 2,000 in 2004 to 5,326 in 2009,” CILA said.
“Our hotel rooms are filled up by visitors coming from as far as Australia via Singapore. The commercial, transport and service enterprises increased by 127 percent from 2000 to 2008 in Mabalacat. Construction and real estate boomed in Angeles City, with the number of enterprises growing by 1000 percent due to tourism, long stay and retirement.”
CILA also noted that “in 2009, jobs increased by 230 percent from only 10,540 in 2004 as a result of the 19 percent growth in the number of business enterprises, largely medium scale.”
“It is time for us to stop counting the number of seat entitlements but rather, the jobs that will be created as a result of freer and uncalibrated aviation markets,” said a CILA statement signed by its president Francisco Villanueva Jr.
He lauded the recent announcement of cabinet members, who met here recently with local businessmen, that the President is set to sign an executive order enforcing open skies policy in all secondary airports all over the country, except in Metro Manila. The policy would open such airports to more foreign airlines.
Finance Sec. Cesar Purisima said the President was slated to issue the EO before the year ends, while Tourism Sec. Alberto Lim said he expected the President to issue a series of EO’s that would lead to the implementation of a total open skies policy.
“It’s job and wealth creation for the millions of Filipinos penalized by present restrictive policies that protect only the few in this country,” CILA said, as it described the open skies police as “very pro-Filipino.”
CILA was referring to sectors which have reportedly launched intensive efforts to block open skies policy and insisting that such policy would disadvantage Filipino-owned airlines.
But CILA said “it is time for us to stop counting the number of seat entitlements. It is time for us to start counting the jobs that will be created as a result of freer and not calibrated aviation markets. It’s job and wealth creation for the millions of Filipinos penalized by restrictive policies that protect only the few in this country.”
The CILA statement cited the benefits of open skies policy after the issuance of EO No. 500 in January 2006 that liberalized the aviation policy at the Diosdado Macapagal International Airport (DMIA) here.
It noted that among other things, the EO took “advantage of DMIA’s strategic location and infrastructure by inviting the airlines to connect DMIA to markets that matter the most without being constrained by the restrictive provisions of agreements.”
“We never bothered counting the seat entitlements. We only bothered with the business opportunities brought about by the growth of DMIA,” CILA said.
It noted that before EO 500 was issued, the DMIA had been a “neglected airport for 10 years since Pres. Ramos declared it as the future premier international gateway of the country in 1994.”
“But after open skies policy, although limited in nature, was enforced at the DMIA, the average 44 international flights in 2003, the flights skyrocketed to 5,326 in 2009, an increase of 12,000 percent”, CILA noted.
“Passenger traffic grew by 70 times from just 7,880 to 558,937 in the same period. Passenger traffic from January to October 2010 already reached half a million, 20 percent higher than its level the year before. Thousands of these passengers are overseas contract workers who regularly visit their families due to the attractive prices of low-cost carriers,” CILA also said.
CILA said “tourists who account for 37 percent of the passenger volume also benefit from these lower fares.”
CILA attributed all these to “the liberal air access policy that we, stakeholders of Central Luzon, supported and continue to support.”
“In 2005, new regional and foreign carriers like Tiger Airways and Air Asia saw something precious in using Clark as a gateway. They entered Clark under the liberalized charter policy of the Civil Aeronautics Board, a policy that was unilaterally pursued by the Philippine government,” CILA recalled.
It also noted that “they could not enter under the restrictive provisions of the so-called bilateral air agreements. We did not force other countries to adopt the same policy. We did not ask for a seat for seat exchange. The government saw the need to develop secondary gateways that have been thirsty for growth. This was a very pro-Filipino policy.”
CILA also recalled that “from 2007 to 2009, a number of air agreements were amended” and that was when “the local carriers responded to competition and started to invest in Clark.”
It noted that “reciprocal benefits followed.” ”From just being an ordinary airport, DMIA gradually transformed into a service logistics complex.”
“There came locators such as SIA Engineering, Gate Gourmet and the Global Logistics Gateway whose investments amount to at least US$300 M. There are new locators such as The Medical City that will generate jobs. The number of hotel rooms in Clark and its environs increased from only less than 2,000 in 2004 to 5,326 in 2009,” CILA said.
“Our hotel rooms are filled up by visitors coming from as far as Australia via Singapore. The commercial, transport and service enterprises increased by 127 percent from 2000 to 2008 in Mabalacat. Construction and real estate boomed in Angeles City, with the number of enterprises growing by 1000 percent due to tourism, long stay and retirement.”
CILA also noted that “in 2009, jobs increased by 230 percent from only 10,540 in 2004 as a result of the 19 percent growth in the number of business enterprises, largely medium scale.”
