Gokongwei-led airline gears up for open skies

CEBU, Philippines - While the Single Aviation Market or the open skies policy under the ASEAN Economic Community (AEC) is still under negotiations, Cebu Pacific Air is readying itself to conquer the ASEAN market, and even beyond.

"With or without the ASEAN integration, we continue to add flights and connect the region, by opening more flights and frequencies," said Candice Iyog, Cebu Pacific vice president for marketing and distribution.

The perceived threat of local carriers under the ongoing discussion of the air transport proposal under the Single Aviation Market, is not seen to distract the Gokongwei-led airline company as it has been preparing ahead and ready to compete in case there is a free-flow of entry among ASEAN carriers to the Philippines' air transport industry.

Iyog said aside from expanding its long-haul routes from Manila, Cebu and other hubs in the Philippines, the airline will also introduce more flights and increase frequencies to routes or destinations in the ASEAN region.

The 10-member ASEAN Single Aviation Market dubbed the open skies policy, is seeking to liberalize air services under a single and unified air transport market in ASEAN by next year.

Air travel is part of a larger discussion among the proposed AEC, whose objective is to increase economic integration among members through the harmonization of trade and investment policies under a single market and production base.

The AEC, also slated for 2015, will rapidly transform the region into a fiercely competitive, unified player in the world’s economy, boosting intraregional trade and investment flows and attracting investors to take advantage of a significant consumer market.

Southeast Asia already boasts a combined GDP of more than $2.2 trillion and a population of approximately 620 million, exceeding NAFTA and the European Union in size. Regional trade and investment liberalization have further increased production networks to less-developed and previously restricted countries, including Cambodia, Laos, Myanmar and Vietnam.

Under the regional open sky move in the ASEAN, carriers operating in the region will be allowed to go in and out of major international airports like the NAIA, as if they are local carriers.  (FREEMAN)