Olongapo SubicBay BatangGapo Newscenter

Saturday, February 16, 2008

Free-for-all looms over Clark -Subic

EO 500-B is expected to rescind the original order that imposed restrictions on budget airlines operating in Clark and Subic, allowing only airlines that have been designated by their countries of origin through bilateral air agreements with the Philippines to enjoy air rights.

INTERNATIONAL airline companies not covered by existing air service agreements between the Philippines and their country of origin will also benefit from the open skies policy of the country.

President Arroyo revealed this yesterday, saying that the much- awaited Executive Order 500-B liberalizing air policies at the Diosdado Macapagal International Airport in Clarkfield, Pampanga, was now being finalized.

Mrs. Arroyo told the Philippine Economic Briefing at the Makati Shangri-La Hotel that the government is embarking on the “Swiss Challenge” for the expansion of the Pampanga airport and in fact is accepting unsolicited build-operate-transfer offers for the airport’s expansion.

“We will accept unsolicited proposals for BOT. The first one to submit will be the basis for the Swiss Challenge. We have enough private sector interest without the government having to release funds,” the President said.

Swiss Challenge is a process whereby other investors can have the opportunity to offer lower cost for the project than the proponent, who can subsequently match the offer, under the BOT law.

Mrs. Arroyo has earlier announced that Singapore’s Changi Airport has already expressed interest to submit an unsolicited proposal for the DMIA upgrade.

EO 500-B, on the other hand, is now being finalized by chief presidential legal counsel Sergio Apostol, the President said.

“Take the case of Russia. We have a bilateral agreement with Russia and they have designated Aeroflot, but Aeroflot does not operate here. So we don’t need to have other Russian airlines designated for them to operate here,” she said, referring to budget airline Trans-Aero that has signified interest in operating in Clark.

EO 500-B is expected to rescind the original order that imposed restrictions on budget airlines operating in Clark and Subic, allowing only airlines that have been designated by their countries of origin through bilateral air agreements with the Philippines to enjoy air rights.

Mrs. Arroyo’s announcement effectively overturned the recommendation of Transportation Secretary Leandro Mendoza who insisted during last month’s Cabinet meeting that air service agreements be signed first instead of automatically granting air freedom to all carriers operating in DMIA.

Under the President’s initiative, the former military airstrip in Clarkfield, Pampanga, was converted into an international airport to serve as an alternative to the already congested Ninoy Aquino International Airport in Pasay City.

The DMIA now hosts a number of small international carriers like Tiger Airways, which operates direct flights to a number of Asian cities like Singapore, Thailand and Hong Kong.
By Joyce Pangco Pañares - Manila Standard Today

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