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Philippine Airlines, Asia's First and Oldest Airline

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Philippine Airlines, Asia's First and Oldest Airline
Philippine Airlines, Asia’s first and oldest airline, started its operations in 1941. Since then, the Philippines was opened up to foreign countries and foreign trade. The Philippine Airlines opened up the country to tourism. It thrived from 1970s to early 1980s but during the mid-1980s, the tourism growth slowed down dramatically compared to other neighbouring Southeast Asian countries. Despite the Philippines’ huge head start, it was left behind. How did this happen?

The Philippine government protected the Philippine Airlines for it to develop. They closed the country to foreign carriers and allowed PAL to monopolize the Philippine sky. Other Southeast Asian countries opened their airspace to foreign carriers to expand their tourism industry and encourage foreign guests and investors to visit while the Philippines restricted the number of people who can enter the country. This action cost the country’s tourism industry to lag behind other countries.

Realizing the mistake committed centuries ago, the Philippine government is now adopting the Asean Open Sky Policy. In 1995, Executive Order 219 was issued by then-president Fidel V. Ramos. This EO established the country’s domestic and international civil aviation liberalization policy, but it has only been applied domestically. Back in 2010, during the term of Pres. Arroyo, EOs 500 and 500-B were crafted. EO 500-B liberalized the Philippine sky, granting unrestricted access to Diosdado Macapagal (Clark) International Airport and Subic International Airport to all foreign carriers without any need for government designation or bilateral air agreements.

Now, President Benigno Aquino III upholds the implementation of the Pocket Open Sky Policy. On March 14, 2011, he signed and issued two new Executive Orders, 28 & 29. EO 28 restructures the Philippine Air Negotiating Panel and the Philippine Air Consultation Panel. EO 29, according to Pres. Aquino, will ‘give teeth’ to EO 219 signed by former



References: Bordadora, Norman. “Aquino signs EO to adopt ‘open skies’ policy”. Philippine Daily Inquirer. 2011. 03. 18. Gamboa, Ray. “Are we ready for ASEAN open sky?” The Philippine Star. 2011. 05. 16. Roa, Ana Mae. “Pocket open skies, readied”. Business World. 2011. 01. 05. Rodis, Rodel. “Open Sky won’t solve the problem”. Philippine Daily Inquirer. 2010. 12. 02. Xinhua. “Phl to adopt pocket open skies policy”. The Philippine Star. 2011. 01. 04. Xinhua. “Philippines adopts implementing rules on open skies policy”. People’s Daily. 2011. 05. 06. “NAIA TERMINAL 1 FIFTH WORST AIRPORT IN THE WORLD ACCORDING TO ‘THE GUIDE TO SLEEPING IN AIRPORTS.” PinoyHalo. 2011. 04. 13.

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