NEWSFLASH

CIVIL AERONAUTICS BOARD SEEN TO SPLIT KOREA FLIGHTS BETWEEN PAL, CEBU PACIFIC

Manila, February 16, 2002 (STAR) By Mary Ann Ll. Reyes - There is a very big chance that government will reallocate the four additional frequency entitlements to Korea between flag carriers Philippine Airlines and Cebu Pacific so that they will get two each.

And the Civil Aeronatics Boards (CAB) has scheduled another meeting with the two airlines next week to finally announce its decision on the matter.

The CAB earlier gave three of the four new flights to Cebu Pacific all of which can be flown immediately and the other one to PAL, which can be utilized only in April.

However, government allowed PAL to borrow two of Cebu Pacific’s frequency entitlements until the end of this month. Now PAL wants to have the two permanently and probably let go of the other one that will be available in April.

"There is a very big possibility that the four frequencies will be divided equally between PAL and Cebu Pacific," CAB vice chairman Adilberto Yap said.

The CAB met yesterday to deliberate on PAL’s petition to permanently get the two borrowed flights. The meeting was also held to determine whether Cebu Pacific has the capability to fly by March 2.

Yap said in an interview that Cebu Pacific was able to produce the lease agreements covering two Boeing 757s. "In fact, one of the aircraft is arriving tomorrow (Saturday)," he said.

But the Gokongwei-owned firm failed to submit a needed document (air agreement) from the Korean government that basically allows Cebu Pacific to fly to Korea. "Anyway they have until March 1 to produce the document. Without it, they cannot fly to Korea," Yap, also the chief of the Air Transportation Office (ATO) said.

The CAB had asked Cebu Pacific to submit yesterday various documents to prove that it deserves to get back the two Korean frequency entitlements earlier given it but which were lent to PAL until the end of this month.

Yap said that the board needs to be assured that Cebu Pacific can mount its flights to Korea from Manila or Cebu starting on March 2. "Otherwise, we may be forced to give these entitlements permanently to PAL," he emphasized.

In case Cebu Pacific fails to fly by March 2, then PAL will get the two available frequencies while the former will get the other one, as well as the one that will be available in April. If it flies on that date, then it still retains the two, PAL gets the other one, and the one in April, the CAB chief explained.

The Philippine government has also asked Korea to grant one more additional frequency, and according to Yap, if this is granted, then it will go to Cebu Pacific.

"PAL is interested only in two frequencies, so Cebu Pacific will get two and probably three, if our request for one more additional frequency is granted," Yap said.

Also yesterday, upon the request of the Korean government, the CAB sent via facsimile a letter signed by the board members guaranteeing that Cebu Pacific has two frequency entitlements. Korea is currently deliberating on Cebu Pacific’s request for a permit to fly to that country.

PAL currently has 13 weekly flights to Korea but wants to get two additional frequency entitlements.