Two domestic airlines are seeking approval from the Civil Aeronautics Board (CAB) to be the country’s official carriers under two of the Association of Southeast Asian Nations (ASEAN) multilateral agreements on air services.
Philippine Airlines (PAL) and budget carrier Cebu Pacific Air have applied with the CAB to be appointed Philippine official carriers under the ASEAN Multilateral Agreement on Air Services and ASEAN Multilateral Agreement on the Full Liberalization of Air Freight Services.
The two agreements stipulate that each participating country is given the right to designate as many airlines as it wishes to conduct international air and airfreight services in the ASEAN region.
A participant country should grant the designated airline of another participant country the right to fly across its territory without landing or to make stops in its territory for non-traffic purposes.
In addition, a participant country cannot permit or impose on the designated airline of another participant country to have higher user charges than those it imposes on its own airlines operating similar international air and airfreight services.
On the basis of reciprocity, each participant country must exempt another participant’s designated airline from customs duties, excise taxes, inspection fees, and other national duties and charges levied on aircraft, fuel, ground equipment, lubricating oils, consumable technical supplies, spare parts, and air waybills.
Signatories to the two agreements are Vietnam, Thailand, Myanmar, Malaysia, Singapore, Cambodia, Laos, Indonesia, and the Philippines.
CAB will hear the petitions of both airlines this month.
