Tuesday, August 24, 2010

Open-skies policy to raise air fare—tourism leader



MANILA, Philippines—A tourism industry leader has urged Philippine Airlines (PAL) management and union members to settle their differences amicably as he cautioned the Aquino government against taking extreme measure-like declaring open skies in case its workers will go on strike.

Robert Lim Joseph, chairman of the Travel Cooperative of the Philippines and chairman emeritus of the National Association of Independent Travel Agencies, said the Aquino government should support PAL as it tries to overcome its problems, instead of looking at outside help and adopting an open skies policy.

“The government should support PAL and not act like they are operating PAL. It should leave PAL to work with its airline partners and implement its contingency measures in case a strike will happen,” Joseph said in a news release.

He emphasized that government should not intervene because if it does, interest groups or individuals will take advantage of the situation, to the detriment of PAL and the national interest.

Joseph recalled that when foreign airlines were allowed to service some PAL routes when it temporarily ceased operations in 1998, fares went up.

“This is not to mention the damage that such policy of allowing foreign airlines to take over PAL’s routes will do to our image,” he emphasized.

Joseph said travel agencies are also worried Filipino travel and cargo agents will be displaced once foreign airlines take over PAL’s operations. “We will suffer.”

The tourism leader appealed to the union leaders for sobriety and to work with management to resolve their differences together for the sake of the flying public and national interest.

“I recognize the workers’ sentiments having worked in an airline before but they should also understand that PAL is in a financial crisis. They should not add more to the crisis. They should be united with management and work together to overcome these difficulties,” Joseph stressed.
PAL lost P15 billion in the last two fiscal years (2008-2009) due to the global economic crisis that drastically slowed down travel and high cost of jet fuel, among others.

He pointed out that “one crisis cannot solve another crisis.”
Joseph warned that in case PAL collapses as a result of a crippling strike, 8,500 jobs will be lost and workers can no longer get whatever benefits they are entitled to like retirement and health.
“Both management and workers will lost in the event PAL will close down,” he added.







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