Carmelo Arcilla, executive director of the CAB, said Cebu Pacific applied for additional 720 weekly seats. The listed airline is currently mounting 10 weekly flights for the Manila-Kuala Lumpur route. This translates to 1,800 seats a week.
“For now, Cebu Pacific is the only applicant. We will notify other airlines about the result of the air talks we had with Malaysia and give them seven days to reply if they are interested to apply for entitlements,” said Arcilla.
If Cebu Pacific remains as the lone applicant “then we will grant its request and maybe give it more,” added the CAB official.
The air services agreement (ASA) between the Philippines and Malaysia was amended on June 8 during a two-day air talks. Both countries agreed to add 2,520 additional seats effective immediately from the previous 2,300 seats weekly.
Cebu Pacific vice president for marketing and distribution Candice Iyog earlier said the low-cost carrier intends to mount twice daily flights to the Southeast Asian country within the year. The twice-a-day flights are equivalent to 2,520 seats a week.
“So, at a minimum and within the year, we would need an additional 720 seats a week. Starting next year though we want to go three times daily on Manila-KL,” Iyog had said.
The CAB official said that both countries also agreed on unlimited traffic rights to airports outside of Manila, in keeping with the spirit of Executive Order (EO) 29, the policy implementing an open sky policy.
Arcilla said this is the first air pact sealed for the year. “Also, this is the first grant of unlimited traffic rights to our secondary gateways outside of Manila under EO 29,” added the CAB head.
Under the rules of the said EO, third, fourth and fifth freedom rights are allowed. This means that foreign airlines can mount flights to and from any airports in the country, except the already congested Ninoy Aquino International Airport, without restrictions on frequency, capacity and type of aircraft.
The CAB said EO29 also protects local airlines by taking back the air rights if there will be no reciprocity.
“Any grant of rights under EO 29, not being the result of a bilateral action, is essentially provisional and can be withdrawn if shown to cause actual and unfair competitive disadvantage to Philippine carriers,” stated the order’s implementing rules.
The order was meant to attract foreign airlines to operate in the country’s secondary gateways, which are largely underserved or totally unserved by both international and local airlines.
The CAB is part of the Philippine air panel which negotiates for traffic rights with other countries. Other panel members include representatives from the department sof Transportation and Communications, Foreign Affairs, Tourism, Trade and Industry, and delegates from airline companies.
