Philippine Standard time

The Air Transport and the Open Skies Option


Out of the active 33 foreign airlines with rights to Manila, Davao, Zamboanga, General Santos or Cagayan de Oro, only three have been operating in Mindanao. While seemingly a profit-motivated response to market demand situation, this scenario illustrates an important consideration towards an "Open Skies" Strategy - route profitability. Several issues were raised in response to this strategy. Can this be cure-all strategy to create an environment that would attract new international carrier to Mindanao? What other strategic options can the government consider to serve the national interest of stimulating trade and tourism in Mindanao? Lastly, should the Philippines continue adopting the "Open Skies Policy" given that this policy has recently been blamed for the financial troubles of PAL and the excuse for its inability to compete in the international air services market place?

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Jul 20, 2013