The document discusses the Open Skies policy in the Philippines. Open Skies allows passenger and cargo flights to fly over an area without restrictions between two or more countries. Executive Order 219 established the policy in the Philippines in 1995, limiting it to major airports. Executive Order 500-A expanded it in 2006 to include Diosdado Macapagal International Airport and Subic Bay International Airport. Executive Order 29 further expanded it in 2011 to allow foreign carriers to operate in any Philippine airport. The policy aims to promote free market competition, cooperative marketing, and competitive pricing. It provides economic benefits through increased tourism, trade, employment, and investments. Potential advantages include more flight choices and cheaper costs, while disadvantages include increased security risks and

1. OPEN SKIES
AGREEMENT

2. OPEN SKIES POLICY
OPEN SKIES POLICY
IN THE PHILIPPINES
ECONOMIC BENEFITS
ADVANTAGES &
DISADVANTAGES

3. Open Skies
 International agreement between 2 or more
countries allowing passenger and cargo to
flyover an area without restrictions
 Aims to promote:
 Free market competition
 Cooperative marketing arrangements
 Competitive pricing

4. Some countries with Open Skies
Policy

5. E.O No. 219 (3 Jan 1995)
“The exchange of traffic rights and routes with other
countries shall be based on (a) the National Interest which
shall include value for the Philippines in terms of promoting
international trade, foreign investments and tourism, among
others, and on (b) the reciprocity between the Philippines
and other countries . Reciprocity shall be interpreted to
mean the exchange of rights, freedoms and opportunities of
equal or equivalent value. The Civil Aeronautics Board (CAB)
shall determine “national interest” taking into consideration
the larger interest of the country, especially the users of air
services”
Limits coverage to major airports (Ninoy
Aquino International Airport)

6. E.O No. 500-A (22 Aug 2006)
“Any provision of Executive Order No. 219
(Series of 1995) Executive Order 32, (Series of
2001) and related issuance to the contrary
notwithstanding, the Civil Aeronautics Board
(CAB) shall process within thirty(30) days from
receipt all application services to DMIA and
SBIA, in accordance with the CAB’s current and
applicable rules regulations and procedures.”
Grant of unlimited 3rd and 4th freedom rights to foreign air
carriers operating in the Diosdado Macapagal
International Airport (DMIA) and the Subic Bay
International Airport (SBIA)

7. E.O. No. 29 (14 Mar 2011)
“In the negotiation of the ASAs, the Philippines Air Panels
may offer and promote third, fourth, and fifth freedom
rights to the country’s airports other than the Ninoy Aquino
Internationa; Airport (NAIA) 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”
•Foreign carriers may now fly/operate in
any airport In the country.
•Prohibits “cabotage”

8. FREEDOMS OF THE AIR
 First - the right to fly over a foreign country, without
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
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landing there
Second - the right to refuel or carry out maintenance in a
foreign country on the way to another country
Third - the right to fly from one's own country to another
Fourth - the right to fly from another country to one's
own
Fifth - the right to fly between two foreign countries
during flights while the flight originates or ends in one's
own country

9. Economic Benefits
TOURISM
TRADE
EMPLOYMENT
INVESTMENTS

15. Advantages & Disadvantages
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With less government regulation
on commercial aviation,
theoretically, there should be
more flights available as more
foreign (and local airlines) can
participate. More flight choices,
should mean cheaper cost for
the air travelling public.
With easier & more convenient
access to popular tourist
destinations, the number of
visitors should rise. This brings
additional revenue to local
businesses and should help the
economies of these areas.
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
With the opening up of new
international gateways in the
Philippines, there is an increased
risk in security & potential entry
points for illicit activity from
abroad.
With the de-regulation of
commercial aviation, there will
be more competition for the
local airline industry from
overseas, which may lead to
some local carriers to fold. This
is not necessarily bad for the
consumer, as more competition
provides better choices, though
not necessarily better service.