PHILIPPINES, TAIWAN END AVIATION TIES
The Philippines and Taiwan have severed all aviation ties as
negotiations failed last week to bring about an agreement over the right of Taiwan’s
airlines to carry passengers from Manila to Taipei.
The Philippine government demanded that Taiwan’s China Airlines and EVA
Airways limit their capacity between Manila and Taipei to 3,000 seats per week. CAL and
EVA said that was too restrictive. The Philippines accused the two Taiwanese carriers of
discounting rates to gain traffic.
The bilateral aviation agreement between the Philippines and Taiwan
expired on Oct. 1 and no new talks were scheduled.
The Philippine government has adopted a policy to limit the rights of
foreign carriers serving the Philippines in an effort to protect its ailing
national airline Philippine Airlines. PAL, which still owes creditors more
than $2 billion, blames foreign competition for many of its problems.
Emirates airline lost its right to fly to Manila from Hong Kong in
March. Philippine authorities this summer ordered civil employees to fly
PAL when traveling abroad whenever possible.