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FAQ on EO29

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WHAT IS THE OBJECTIVE OF E.O. NO. 29?
 
The objective of E.O. 29 is to attract operators and encourage direct services to our development routes. While an outright bilateral exchange of rights is the more procedural and conventional way by which to trade traffic rights, EO 29 offers a more flexible, immediately available and more pro-active option by which to attract operators and develop air services, without the burden of initially growing throught the rigors of bilateral negotiations outright. In accordance with the mandate of EO 29 for the CAB to adopt EO 29's Implementing Rules and Regulations (IRR) within thirty days upon its effectivity, the CAB adopted EO 29's IRR during its meeting on May 02, 2011, after public consultations with aviation stakeholders.
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WHAT IS COVERED BY E.O. NO. 29?
 
E.O. No. 29 covers all development airports or gateways that are outside Manila. Therefore, the Ninoy Aquino International Airport, which includes all of its terminals, is not included or covered by the said E.O.
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WHY IS NAIA NOT COVERED?
 
It is not covered because NAIA is already severely congested and practically bursting in the seams. In fact, more than eighty percent of international traffic to and from the Philippines is served by NAIA. The congestion and overconcentration of international traffic in Manila is underscored by the fact that most of our tourist destinations which are outside Manila, can be more onveniently accessed through our alternative gateways. It is therefore imperative to promote the development and viability of international services to and from our developmental gateways, like Cebu, Clark, Davao, Laoag, Puerto Princesa, Zamboanga, Kalibo, Cagayan de oro, Ilo-ilo, and other development gateways.
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WHAT ARE THE SALIENT FEATURES OF E.O. NO. 29?
 
The salient features of EO 29 are the following:

  • Section 2. In the negotiation of the ASAs, the Philippine Air Panels may offer and promote third, fourth and fifth freedom to the country's airports other than the Ninoy Aquino International Airport, without restriction as to frequency, capacity and type of aircraft, and other arrangements that will serve the national interest as may be determined by the CAB.
  • Section 3. Notwithstanding the provisions of the relevant ASAs, the CAB may grant any foreign air carriers increases in frequencies and/ir capacities in the country's airports other than NAIA, subject to the conditions required by the existing laws, rules and regulations. All grants of frequencies and/or capacities shall be subject to the approval of the President and shall operate as a waiver by the Philippines of the restrictions on frequencies and capacities under the relevant ASAs.
  • Section 4. The CAB may impose a period or other conditions on the availment or utilization by foreign air carriers of such additional frequencies and/or capacities and may revoke the waiver granted to them if they fail to comply with said conditions.

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ARE PHILIPPINE CARRIERS PROTECTED IN THE E.O.?
 
Yes, Philippine carriers are protected by the way reciprocity. In fact, the IRR (Implementing Rules and Regulations) of the EO provides that the Boardn reserves the right to revoke, suspend or restrict operations granted to a foreign airline under this EO in the event that the State of the registry of such foreign airline fails to extend reciprocal rights and/or equal opportunity to carriers.
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WHO WILL BENEFIT FROM THE E.O.?
 
Sweeping as it may sound, the whole country or at least the majority of the segments of society will benefit from the implementation of this economic strategy. It will enhance competition and attract investments and ultimately provide users of air transportation more options, more efficient and dependable services, including cheaper fares.
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WHAT IS THE SIGNIFICANCE OF THE IRR?
 
The IRR lays down the procedural framework as well as the operational details that would put into effect the spirit and objective of EO 29. While national interest and economic benefits for the country are the paramount considerations taken into account in the formulation of the IRR, its impact on the local civil aviation industry and on the rights and interests of local players were equally considered and protected. For this purpose, specific safety nets have been provided to ensure that local airlines do not sustain actual disadvantage. Consistent with existing laws, the IRR authorizes the CAB to restrict, suspend, or revoke any air traffic rights granted under EO 29 if the home State of the benefitting foreign airline fails to extend equal or similar opportunities to our local airlines applying for equal or similar rights and who are capable or operating such services.
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WHAT ARE THE SALIENT FEATURES OF THE IRR?
 
The salient features of the IRR are the following:

  • It requires a foreign airline applying for rights under EO 29 to apply for a Foreign Air Carrier’s Permit with the CAB and to be designated or authorized by its home State to operate to the Philippines.
  • It requires the Philippine Air Panel to hold consultation talks with the respective State of registry of the benefitting foreign airline to convert such rights into regular traffic rights in the pertinent Air Service Agreement, with equivalent traffic rights for Philippine carriers.
  • The Board reserves the right to revoke, suspend or restrict operations granted to a foreign airline under EO 29 in the event that the State of registry of such foreign airline fails to extend reciprocal rights and/or equal opportunity to the Philippine carriers.

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DID E.O. NO. 29 SUPPLANT E.O. NO. 219 (DATED 03 JANUARY 1995)?
 
No, in so far as the provisions of E.O. No. 219 are not inconsistent with the provisions of E.O. No. 29.
The present E.O. actually amplifies the liberalization policy enunciated in the old E.O. (219), with a more aggressive approach.
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