Legal and economic implications of the unilateral declaration of pocket open skies

• Main Author: Miranda, Elisa Diamante R.
• Format: text
• Language: English
• Published: Animo Repository 2008
• Subjects: Air traffic rules—Philippines; Air and Space Law
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/6893
• Institution: De La Salle University

The Philippine aviation industry is obstinately concerned with the passage of Executive Order 500-A (EO 500-A), which amended Executive Order 500 dated January 27, 2006, that implements an open skies policy in providing for an expansion of air services to the Diosdado Macapagal International Airport (DMIA) and Subic Bay International Airport (SBIA). EO 500-A has for its purpose the unilateral grant of air traffic rights to foreign air carriers. Specifically, the Executive Order allows designated airlines of other countries the right to operate commercial passenger and cargo flights to and from DMIA with the right to network. Foreign air carriers will be granted 3rd and 4th freedom traffic rights without restriction or limitation on capacity or type of aircraft. The constitutional issues relate to sovereignty, national interest and reciprocity. This is brought about by the unilateral character of EO 500-A which is a departure from the conventional bilateral and multilateral agreements between and among countries and are undertaken to assure an equal and fair exchange of rights between countries different in size and with airlines of varied strengths. Thus, with the full implementation of EO 500-A, the Philippine Government will no longer have a strong bargaining position in the re-negotiation of the existing Air Service Agreements (ASA) of the Philippines with various countries. The consequence of implementing such policy will inevitably affect the profitability of the Philippine aviation industry and the business enterprises operating within the vicinity of DMIA and in the nearby provinces.