PAL seeks support for talks with US on ‘calibrated open skies’

The Philippine Airlines (PAL) is seeking government support for a "calibrated open skies" negotiation with the US.

In a letter to former Transportation Secretary Pantaleon D. Alvarez dated May 31, 2002, PAL president Avelino L. Zapanta stressed the need for the Philippines to urgently renegotiate the RP-US Air Transport Agreement (ATA) to postpone the automatic open skies provision that would take effect in October 2003.

"PAL is not against an open skies policy. But the events of the Sept. 11 has radically changed the airline industry," Zapanta said.

He said PAL, which had been on its way to profitability, experienced a reversal following the Sept. 11 terror attacks on the US.

"PAL is in the midst of a rehabilitation program that is intended to make the carrier more efficient and ready for competition when it completes its restructuring," Zapanta said.

The rehabilitation period started in 1999 and is supposed to end by 2004.

A renegotiation of the RP-US ATA, will give some breathing room for PAL and other fledging RP carriers to build up their resources for long-haul operations, Zapanta said.

PAL said that during the deferment period, some terms of the existing RP-US ATA could be liberalized, particularly where it can create or expand new markets in the US for RP carriers.

Specifically, PAL is urging the US to open its domestic routes to Philippine carriers for which the country can reciprocate accordingly.

Allowing Philippine carriers to fly US domestic routes would offset US carriers’ existing fifth freedom advantage to carry traffic between the Philippines and cities comprising all of Asia, Australia, the Mideast and Europe.

The fifth freedom provision allows a carrier to ferry a limited number of passengers to a third destination en route to their primary destinations.

"Unlike US carriers which begged for protection and received state aid from the US government last year, PAL only wants fair, equitable, realizable and reciprocal opportunities for Philippine carriers to fully access the Philippine-US market," Zapanta said.