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WHEN Rexz
Maranan came home from
London
via the Middle East to bury his 80-year-old mother in
January, he expected to be away from his work for about
two weeks before returning to his job at the Heathrow
Airport as a security officer. Instead, Maranan spent
more than a month in his hometown of Santa Cruz, Laguna,
unable to book a seat on any of the five Middle Eastern
carriers, and finally buying a ticket for $1,200 (instead
of the $500 given to OFWs), by taking a plane to Hong Kong
and then a connecting flight to Heathrow via Frankfurt.
Not only
was the additional air fare a burden; he almost lost his
job.
Maranan’s
plight is not unique to the thousands of vacationing
overseas Filipino workers (OFWs), including those newly
hired, who find themselves “stranded,” in a manner of
speaking, at the Ninoy Aquino International Airport (Naia)
waiting for their chance to fly as virtual “chance
passengers.”

Illustration by Jimbo Albano
Every
year, from January until about May, following the long
holiday season, thousands of these OFWs are left marooned
in their country simply because there are very limited
seats to take them back to their place of work. This has
been going on annually for the past few years despite a
total of 70 flights allowed for the five Arab airlines
plying this lucrative route.
Qatar,
Gulf Air, Emirates, Saudia and Etihad Airways dominate the
destination from Manila to all of the Gulf States
destinations, having edged out Philippine Airlines (PAL)
and European airlines in the highly competitive market 10
years ago.
PAL
asserts that since the Gulf carriers are subsidized by
their respective governments, they can dive down the cost
of air tickets, thus, it’s an uneven playing field. The
Gulf airlines counter that PAL enjoys code-sharing
arrangements with some of them, and earns income by
enjoying that quota reserved for locally registered
airlines.
Whatever
the merits of their arguments, the fact remains that of
the estimated 5 million OFWs (including illegal) in the
Middle East, there is a crying need for more flights that the government
must address.
In Saudi
Arabia alone, there are more than 2 million OFWs; Bahrain
is home to 800,000; Abu Dhabi and Dubai to half a million;
and the rest are shared by Doha, Jordan, Oman and Israel,
according to Onie Nakpil, the chairman of the Airline
Operators’ Council (AOC), and manager for Security of Gulf
Air.
Business
locators at the Diosdado Macapagal International Airport (DMIA)
in Clark have been vocal about accepting more flights to
foreign carriers, but the Air Services Agreements (Asa),
which requires a bilateral exchange of flights, renders
this impossible at the moment.
The Civil
Aeronautics Board (Cab), when asked to comment about the
present problem, said it has allowed foreign carriers to
fly out of the DMIA, but the quota remains underutilized
because these carriers choose to concentrate in Manila,
instead of Clark.
“We don’t
have a problem with liberalization, but we are also
compelled to protect our national interest,” said CAB
lawyer Maria Elena Moro, chief of the Hearing Examiners’
Division and concurrent assistant director.
She added
that the Cab has granted flying rights to several foreign
carriers to fly out of Clark, “but most of these carriers
are interested in
Manila
and not Clark or Subic.” It’s a situation that local
carriers use to buttress their arguments that the foreign
airlines are unfairly competing, eager only to grab more
entitlements but not committed to fly where they’re
needed. Moreover, they’re not willing to grant
reciprocity.
Moro added
that the Cab can’t compel any airline to fly where these
foreign airlines don’t want to operate.
At the
moment, she revealed that two local carriers, Trans Global
Airways and Spirit of Manila, have pending applications to
fly out of Clark direct to Bahrain.
Critics of
the foreign air carriers said the Gulf airlines have
focused on Manila to corner the huge OFW market, and,
despite what they have promised before, failed to bring in
foreign tourists as part of the bargain.
Nakpil
denied allegations that their carriers are heavily
dependent on the OFW market, saying that only a small
percentage of their seats are allotted for them.
He
clarified that majority, if not all, of the travel agents
representing the OFWs have a quota set aside for “economy”
tickets. The economy section is further subdivided into
four “classes,” each class cheaper than the preceding
ones.
“Naturally, the cheapest tickets are the ones easily sold
and those OFWs who are unable to get them get the next
expensive economy tickets until the whole economy classes
are used up.”
Nakpil
emphasized that the “real” economy tickets are more
expensive, which the OFW can barely afford.
Reduced
tickets to Hong Kong, for example, go as low as $100, but
the “real” economy tickets cost as much as $600, he said.
Low-budget
airlines offer rock-bottom prices, but do not provide the
passengers of many amenities such as food, lounges and
other perks that the high-paying customers enjoy.
The
foreign carriers are forced to offer more expensive seats
to reduce overhead because of the high operating cost
entailed by flying out of the Naia, according to Nakpil,
who traced this to the high cost of landing and takeoff
fees, security tax and other so-called surcharges imposed
on them.
Nakpil
said the Gulf carriers have pending applications with the
CAB to increase the current frequency from 70 to 140
flights a week, which the CAB is loath to grant unless a
new ASA is put in place.
To avoid
the sight of stranded OFWs every year, Nakpil said the AOC
is proposing that CAB deregulate traffic rights, depending
on the season.
“From
November to June [holiday season and vacation time for
OFWs], all air carriers can apply to mount extra flights
without the need for approval from the local carriers,”
Nakpil said.
He added
that the stringent policy being observed by the CAB, and
therefore, by the government, is the cause of the
cessation of flights by 17 European airlines during the
last 10 years.
“There is
simply too much operational cost,” he said, forcing these
European airlines to quit flying out of
Manila.
At the
moment, only KLM, the Dutch airlines, is left to bring
Manila passengers to Europe.
Those that
had quit during the last few years include Lufthansa, Air
France, Sabena, Alitalia, British Airways and Swissair.
The AOC
headman said that, at present, the government has failed
to offer foreign carriers more incentives such as tax
breaks or tax reliefs for them to carry OFWS in and out of
the country.
That the
country remains a laggard in
Asia compared
with our neighbors in increasing its tourist receipts is
undeniable.
This is
the reason why Clark businessmen, led by Rep. Carmelo
Lazatin, had proposed to file Executive Order 500-B, a
bill that would allow “pocket open-skies policy” for
Clark, Subic and other
airports that could be designated gateways to the
Philippines.
He said
that when the DMIA was opened in 1992, there were only
five scheduled flights per week, but in 2006, the airport
registered 17 scheduled flights per week and an additional
1,280 chartered flights by Korean carriers.
As a
consequence, Lazatin said that when the Cab introduced a
more liberalized policy, the DMIA increased passenger
traffic by 860 percent from 2004 to 2006, with tourist
arrivals increasing by more than 70 percent from 2005 to
2006.
“This
year, the DMIA has already welcomed its 1 millionth
passenger,” Lazatin said.
Last week
the American Chamber of Commerce of the Philippines (AmCham)
added to a rising chorus of voices, urging more flights
into the country by allowing “pocket open skies” to draw
in not only tourists but also investors.
Rob Sears,
AmCham executive director, asked whether the country wants
a policy that helps the country as a whole or just a
particular company or a small group of companies.
The local
carriers—Philippine Airlines, Cebu Pacific, Asian Spirit
and Pacific East Asia Cargo—have opposed EO 500-B or
pocket open skies because it does not demand reciprocity
from the countries whose carriers want unlimited freedom
to fly to that region.
Jaime
Bautista, Pal president and COO, said that the national
flag carrier supports an open-skies policy that is “fair,
equitable and reciprocal,” which E0 500-B does not ensure.
Some
aviation sector, who wanted not to engage Bautista, had
proposed instead that the Philippine Overseas Employment
Agency, the Overseas Workers Welfare Administration and
other related agencies to mount charter flights every year
to accommodate the planeloads of OFWS wanting to go on
vacation to their home country and still be assured of a
flight back to their work, when their vacation had been
fulfilled. |