Thursday, August 19, 2010

PAL urges gov't to implement "fair" open skies policy

(philstar.com) Updated August 19, 2010 10:01 PM

MANILA, Philippines (Xinhua) -- Embattled flag carrier Philippine Airlines (PAL) cautioned against the liberalization of air rights, better known as the open skies policy, as the country's current infrastructure may not be able to handle increased air traffic, according to the PAL's statement today.

"Let's make it clear: PAL is not against open skies. We just want it to be fair, reciprocal and its implementation should be phased-in and calibrated," PAL President Jaime J. Bautista said in the statement.

Bautista is reacting to President Benigno S. Aquino III's statement Wednesday, saying that the government is studying the implementation of the open skies policy, which will allow more flights to enter the country thus raising tourism receipts. Aquino 's statement was issued at a time that PAL is being hounded by labor issues, forcing it to cancel some flights.

But Bautista said the open skies policy should be viewed in the context of "available infrastructure like the Ninoy Aquino International Airport's (NAIA) congested single runway, overburdened terminals and the country's negative image as a tourist destination."

As he welcomed calls for more relaxed access to the Philippines, he said all airlines with existing capacity rights to Clark, Cebu, Davao and other areas should be encouraged to mount more flights to these areas to decongest Manila and promote nationwide tourism.

The Philippines has already signed an open skies deal with members of the Association of Southeast Asian Nations (ASEAN), but the current deal covers major airports only. In the Philippine case, only the Manila-based NAIA is covered.

President Aquino also said that the unresolved dispute between the PAL management and the 1,600 members of the Flight Attendants and Stewards Association of the Philippines (FASAP) may hasten the country's adoption of open skies policy, especially if the interest of the riding public is at stake.

"The President's pronouncement is a wake-up call for both PAL management and its cabin crew union to immediately solve the CBA (collective bargaining agreement) impasse. We hear the President's call that we must find solutions to avoid any inconvenience to the riding public," Bautista said.

“More than anyone else, PAL wants to put closure to its 2005-2010 CBA with its cabin crew. But like any negotiated CBA, it must take into consideration not only the union's demands but the airline's capacity to pay and meet those demands. It's give and take," he said.

He added that non-economic benefits such as the retirement age and other peripheral issues can be discussed in the next round of CBA talks which PAL management and FASAP "can immediately begin."

FASAP, however, insisted that all the issues, particularly the retirement age, should be resolved immediately.

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