Manufacturing Industry

Philippines likely to reopen discussions with Taiwan due to economic hardship - air service agreement talks - Brief Article

Airline Industry Information, June 9, 2000

AIRLINE INDUSTRY INFORMATION-(C)1997-2000 M2 COMMUNICATIONS LTD

Philippines President Joseph Estrada has apparently indicated that he is ready to resume negotiations with Taiwan regarding air services between the two countries.

Flights between the Philippines and Taiwan have been suspended since October 1999, when the two failed to agree on passenger capacity loads allowed by carriers as well as on so called '6th freedom' rights to transport passengers on to third countries.

The suspension of services has apparently affected the Philippines' economy quite badly according to Dow Jones News, prompting Estrada to give the task of overseeing negotiations to his Economic Coordinating Council (ECC).

The ECC, a body that advises the president on policy issues, is seen as more likely to put the national economic interest before that of Philippines flag carrier Philippine Airlines (PAL). In previous negotiations PAL's stance against Taiwan was backed by the Civil Aeronautics Board (CAC), which suspended services between the two countries.

The CAC has been criticised for being influenced by PAL's owner Lucio Tan, a charge that it has denied. The CAC will still remain responsible for negotiating with Taiwan.

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COPYRIGHT 2000 Gale Group

 

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