Reciprocity is equity

 

Fair deal, equal trade, level playing field.

Reciprocity boils down to all of these. To the uninitiated, the term may sound like a complex, intimidating business construct.

But it really, really is so simple: “I scratch your back; you scratch mine.” There is equity in reciprocity.

So what part of this principle our aviation industry regulators do not understand?     

We can only understand the exasperation of our local commercial carriers in    pointing out to the government that we are on the losing end of the deal on a “open- skies” regime.

They have again raised their outrage over such one-sided  policy, saying the disregard for reciprocity with other countries may jeopardize the growth of the industry.

The Civil Aeronautics Board last week approved the final implementing rules of Executive Order 29—signed by President Aquino in March—which removed legal restrictions on the number of flights foreign airlines could   mount to local cities outside Manila.

The government is hoping – quite uselessly — that the more liberalized rules would spur the growth of the country’s tourism sector—considered a pillar of the administration’s economic platform.

Budget carrier Cebu Pacific said in a statement   issued on Friday that it was “disappointed” that the government did not heed   its calls for rights given to foreign airlines to come with the condition that the same rights be granted to local carriers by other countries.

“We have expressed our concerns on   reciprocity right from the start. Regrettably, none of our proposed   amendments that would have produced fair competition and enshrined   reciprocity into the implementing rules and regulations were adopted,” Cebu   Pacific was quoted by a major broadsheet as saying in a statement.

In the approved rules, the CAB   will require that any air rights given to foreign airlines should also be given by foreign governments to local carriers – that is, under normal circumstances.

However, the need for this would   be waived if letting foreign airlines serve a particular route was in   accordance with “national interest and mutual benefit.” Cebu Pacific said this would be an   unfair advantage for foreign airlines.

“We strongly believe that the   Philippine airspace is a valuable asset and should be used to further the long-term interest of the nation through mutually beneficial air agreements,” the carrier said.

“We can compete with foreign carriers if given a level playing field of equal and reciprocal traffic rights. This level playing field is vital for [our] continued viable   existence,” it added.

In a separate interview, Zest Airways chairman Alred Yao said the government   should protect the rights of local airlines, which have invested billions of  pesos and hired thousands of people to expand operations in the past few   years.

“We welcome additional competition because it will grow the market for all airlines. But we should put everything on equal footing with foreign airlines,” Yao said. “We are giving out something that’s very precious. We should get something too.”

He said the additional competition from foreign airlines might hamper Zest’s own expansion plans. Earlier this year, the company announced plans to acquire two Boeing 777 aircraft, which are capable of long-haul flights to the Middle  East, Europe or even the United States.

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