Group hits Aquino’s open-skies policy

Daily Tribune – Without Fear or Favor

05/02/2011

The nationalist economic group National Economic Protectionism Association (Nepa) said it is backing the growing opposition to the open skies policy of the Aquino administration, adding that the policy would only lead to destroying the country’s flag carriers.

Nepa president Bayan de la Cruz described as “ill-thought and badly-motivated executive order on open skies shoots the lights out of Philippine Airlines (PAL) and Cebu Pacific.”

De la Cruz welcomed the opposition to the new policy, which had been advocated by Tourism Secretary Alberto Lim for decades and opposed by tourism industry leaders who want reciprocity.

He added that welcomes the position of Lance Gokongwei on the matter and scores the absence of any consideration for the interest of local carriers.

“As correctly pointed out, Aquino’s executive order opens the country’s skies without any measure of reciprocal gesture from foreign countries,” De la Cruz explained.

Established in 1934, Nepa had long advocated the protection and promotion of local industries so that they can compete in the national economy and even venture internationally.

“Unfortunately, neo-liberal policies had already virtually wiped out the country’s industrial, manufacturing and agricultural sector. The Aquino administration’s open skies policies policy, among other ill-advised programs, will severely damage what remains of the service sector,” De la Cruz warned.

“Gokongwei stressed that what they are seeking is equal, and not favorable, treatment. Nepa, too, does not advocate protectionism if it means protection of monopolies like the Philippine Airlines during the Marcos years,” he said.

Without Cebu Pacific, there is no guarantee that low fares will be offered to the public. The budget airline’s year-round low fares is the reason other local airlines are keeping their fares affordable and bringing in the tourists.

If the government really wants competition, it must foster the atmosphere of a level playing field so that any airline can compete, De la Cruz said.

“It must be pointed out, however, that a level playing field is illusory in the airline business if one takes into consideration that the United States (and France) have a virtual monopoly in the production, sales and rental of aircraft in this part of the world,” De la Cruz argued.