Thursday, April 10, 2014

Airline Competition 2: More PH Flights to the US and Europe

Today, the US Federal Aviation Administration (FAA) has granted a Category 1 rating to the Philippines for its compliance with international safety standards set by the International Civil Aviation Organization (ICAO). This means that Philippines’ air carriers can add flights and service to the US and carry the code of U.S. carriers. Good news.

A friend, Coco Alcuaz made this timeline in his fb posting today: 

US FAA lifts ban on PH, allowing PAL to add flights, Cebu Pac to start. Cebu Pac also due to get EU approval tonight. Here's a history: 
1998 Philippine Airlines ends flights to EuropeJan. 2008 U.S. FAA downgrades PH to Category 2 (no new flights)March 2010 EU bans all PH carriersJuly 2013 EU lifts ban on Philippine Airlines (PAL)Oct. 2013 Cebu Pacific starts first long-haul flight (Dubai)Nov. 2013 PAL starts flights to LondonToday FAA restores PH to Category 1Later today EU expected to lift ban on Cebu Pac

This move by the FAA is consistent with the US government's more liberal granting of US visa to PH citizens. The US government wants more rich and middle class Filipinos to go to the US and spend money there, help improve business confidence. If more Filipino travelers are prevented from going to the US by denying them entry visa, these Filipinos will simply go to Europe or other Asian countries and spend their money there. 

Hours after the FAA announcement, the EU in Brussels also announced that it has cleared Cebu Pacific to fly to European air space.

Many people here welcomed this development positively. And rightly so because of the huge new business opportunities that will be opened, especially in tourism, trade and investment.

More competition among more airlines flying PH-US and PH-EU would also mean lower fares, better service. Bad service and/or high fare by one airline will turn off passengers and buy their tickets for their next flight with another airline.

See also: 
Airline Competition 1: Standing Room Flights, July 05, 2010 
Airline oligopoly, Philippine AirLines, September 16, 2011

1 comment:

Bruce in Iloilo said...

CAAP is overworked. Air regulation and air safety should be split from non-airside duties, like it is in many countries. CAAP should be focused like a laser on air safety and regulating the airlines and leave the running of terminals and other non-airside of airports to others. The non-air side of airports can either be run by local authorities or by private companies. Both have proven effective worldwide. CAAP can then concentrate on its core mission -- safety.

Besides, Iloilo should be in charge of its own airport, as should Cebu, and Clark, and Davao, and CDO, and...