CLARK FREEPORT – A joint statement from Philippine air carriers composed of Philippine Airlines (PAL), Cebu Pacific Air (CebPac), PAL Ex-press and Tiger Airways Philippines expresses“grave concern” over the Civil Aeronautics Board’s (CAB) granting of an additional 30-day extensionfor Emirates airlines “to continue operating seven weekly flights on the Dubai-Manila-Dubai routes in excess of their maximum entitlement under the existing Philippines- United Arab Emirates (UAE) bilateral air agreement.”
On Oct. 13, the CAB initially granted Emirates airlines a 30-day period, counted from October 27 to November 26, 2014 to operate additional seven frequencies presumably by virtue of its authority to grant extra frequencies to any foreign car-rier for a period of not more than 30 days despitestrong objections from the Philippine air carriers. Then on November 6, the CAB allowed an additional 30-day extension for a total of 60 days infavor of Emirates or until December 26, 2014.
In their joint statement, the Philippine carriers said they believe that “the issuance of the extended grant to operate additional seven flights only worsens the current injurious situation as Emirates had long been selling seats on these flights without prior CAB approval as required by RA 776.” The Philippine carriers also said “at present, Emirates’ has been selling flights until October 2015 which is beyond the CAB’s extended deadline” which constitutes “a blatant disregard of the CAB’s authority.”
The Philippine carriers appealed to the CAB to “take the immediate and necessary action to cause this foreign carrier to cease and desist its defiance of the Philippine Government in the interest of fair competitionand the growth ofthe Philippine aviation industry.” The Philippine carriers also believe that theCAB has no authority togrant extra frequenciesin Manila under Section3 of Executive Order No.29.The Philippine carrierssaid they stronglyoppose “the grant of this extended permit to Emirates’ extra frequencies,”because PAL, Cebu Pacificand Air Philippinesare capable of immediatelymounting directflights to the UAE.
“Indeedwe are operatingthese flights to Dubaiand Abu Dhabi today,”the Philippine carrierssaid.“We look to the CABto work with the Philippineair carriers in growingthe Philippine aviationindustry and to allowus to compete withforeign carriers in a levelplaying field. We believethat the grant ofthese unwarranted extraflights to Middle Easterncarriers distorts competitionand undermines theinvestments of Philippineir carriers in buildinga truly competitive airroute to the UAE,” thejoint statement said further.“
Hence, if Philippinecarriers are allowed tomount only 28 frequenciesat this stage of competition,then the UAEcarriers, including Emirates,should not be allowed to operate morethan 28 frequencies ven for a temporary period,” they reasoned. The Philippine carriers said Emirates “need to play by the rules” “should not be allowed to make a mockery of Philippine regulations.”
The statement said: “As good citizens of theaviation world, Philippinecarriers play by the rules. We adhere to the limitsset by bilateral aviationagreements; we sell and operate flights only whenwe have the necessary approvals and regulatory clearances to do so.
”They accused MiddleEastern carriers ofidestepping prohibitionsagainst directly flying passengers betweenthe Philippines and foreignountries by making short connecting stopshrough their home hubairports. “Allowing Emiratesexcess flights wouldncourage this practiceto the detriment of Philippinecarriers operatingthe same routes,” theysaid.“
Emirates’ request for unwarranted extra flightsto Manila is unnecessary,”according to thePhilippine carriers.Executive Order No.29 (EO 29) allows foreigncarriers to operate unlimited flights to Clark,Cebu and other airportsin the Philippines, and this is affirmed by the Philippines-UAE bilateral agreement. If Emirates truly wants to expand its service into the Philippines, it has every opportunity to put up new flights to Clark, Cebu or other Philippine international airports outside of Manila, the statement aid.
The Philippine carriers have been a major driver of tourism growth in the country. The Philippinecarriers’ direct flights to the UAE, Saudi Arabia and Kuwait have widened passengers’ choices and made air fares more affordable to better serve overseas Filipino workers (OFWs) and promote tourist travel between the Middle East and the Philippines. “We believe the pushto increase tourism and improve services can be achieved, by allowing Philippine carriers and foreign carriers equal accessto traffic rights.
We do not believe it is fair to extend unnecessary favors to Middle Eastern carriers whose main objective is to build major hubs in the UAE, rather than develop the Philippines as a “hub,” the joint statement of the Philippine carriers said. “We are not asking for special favors, just a level playing field. If the benefits of air services liberalization are grantedin favor of foreign carriers, then e are discriminated against in our owncountry,” it added.
