Cebu Pacific expressed remorse that the Civil Aeronautics Board did not include its proposed amendments to the Pocket Open Skies policy. Cebu Pacific (CEB) asked that countries flying into the Philippines be required to allow airlines in the Philippines to also fly into those countries.
In fact, the board removed a clause that gave the Philippines the right to revoke any countries right that did not provide reciprocity.
The board stated that it put national interest ahead of the wishes of domestic airlines.
Under the Pocket Open Skies policy airlines from countries outside the Philippines will now be able to provide service direct to certain cities in the Philippines. Cebu will likely be the biggest benefactor of this policy and I expect to see lower rates for international future due to the increased competition.
It is certainly good for those seeking to purchase tickets for flights to the Philippines. Detractors warn that it will mean fewer jobs for Filipino due to reduced demand on Philippines based air carriers.
The international carriers can only deliver passengers to the Philippines, once in the Philippines they must use domestic airlines to reach other cities. If flights into the Philippines increases because of this policy, CEB and Philippines Airlines (PAL) might see an increase in the number of domestic passengers they carry. This could offset their decreased international passengers. It could also increase the number of jobs offered to Filipino.
Of course CEB knows this but it appears they expect to loose more than they will gain. I hope not, but CEB is a feisty and creative competitor and I’m sure they will do just fine.
It almost certainly will mean lower fares for those seeking flights to the Philippines.
Filed under: Flights To The Philippines
Like this post? Subscribe to my RSS feed and get loads more!