Monday, June 23, 2008

Cambodia keen on granting local [Filipino] airlines permit to fly

MON JUNE 23, 2008
By Lenie Lectura
Reporter
Philippine Daily Business Mirror


CAMBODIA has committed to the Philippines that it will extend favorable consideration to local airlines seeking permit to fly there despite the lack of an air services agreement (ASA).

During the air talks between the two countries held last week, Civil Aviation Authority (CAB) deputy executive director Porvenir Porciuncula said in an interview that Cambodian officials assured it will “accept and process” applications from any Philippine carriers interested to service the Manila-Cambodia destination.

The Philippine air panel was hoping to sign its first ASA with Cambodia. The CAB official said that “in some way, we were able to establish an air transport agreement with them.” However, Cambodian officials present during the one-day negotiation held at the CAB office said the Philippines’ request for 32 weekly flights would still have to undergo regulatory approvals in Cambodia.

“While our request remains pending they said that they will help our carriers in seeking permits there. They were cordial and helpful. They also want an agreement in place and they were very positive about that. As to the number of flight entitlements, that is what they are trying to work on now. In the meantime, they assured us that they will consider the applications of our local airlines,” said Porciuncula.

The CAB official revealed that Philippine Airlines and Cebu Pacific have both informed the board of their intentions to mount flights to Cambodia.

The flag carrier is looking at servicing Manila-Cambodia three to four times a week, added Porciuncula.

After Cambodia, the panel will hold talks with counterparts in Hong Kong this week to seek additional flight entitlements.

“Hong Kong is next in line. We will ask to get more flights outside of Manila like Clark, Cebu and Davao. Manila airport is already saturated,” added the CAB official.

Under the current ASA between the Philippines and Hong Kong, Philippine carriers can fill up 13,000 seats for flights to Hong Kong from the Ninoy Aquino International Airport, and 2,300 seats for airports outside of Manila.

Next month the CAB, along with other members of the panel, will also pursue a similar negotiation with the Netherlands.

The other agencies involved include the Department of Transportation and Communications, Department of Tourism, Department of Trade and Industry and various airline representatives.

“The Netherlands air talks will be held first week of July. Right now, KLM is the only airline operating a daily Manila-Amsterdam direct flight. There is a requirement for KLM to mount more flights but we don’t know just how many more until the negotiations take place,” he said.

KLM utilizes the Boring 777 200 and 300 aircraft which can carry 327 and 425 passengers, respectively. German carrier Lufthansa Airlines used to mount flights from Manila to Europe until it decided to stop servicing this route last March.

PAL, meanwhile, gains Europe access with KLM code-share deal. “There is a demand to increase the frequencies particularly for business people and investors who are always on the go and prefer direct flights. These are the reasons why we need more flight entitlements,” Porciuncula added.

The panel also plans talks with Australia, Thailand, and Japan this year. “We have yet to set dates for these negotiations,” he said.

Porciuncula said Cebu Pacific has recently informed the board of its interest to mount flights to Australia. PAL, on the other hand, wants to add more flights there.

“We received a letter from Cebu Pacific. It is planning to fly to Australia in September this year. PAL already flies there but it had reduced its flights before. Now, they want to add more flights to Australia,” said Porciuncula.

For Japan, Porciuncula said the panel also wants to take advantage of Japan’s new policy of opening up airports in Nagoya, Osaka and Fukuoka, which are all outside of Tokyo.

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