The issue of liberalizing the aviation industry is receiving a lot of attention lately, with the Clark International airport on the spot light. Citing reciprocity issues, local airlines are up in arms against further granting access to foreign carriers.
But then again, the benefits of opening the airport in Clark have been tremendous. Not only were a lot of Filipinos able to fly abroad and back cheaply, it has dramatically increased not only tourism activities, but business opportunities in the Central Luzon area (Clark-Olongapo).
This is again a classic oligopoly case wherein a few dominant carriers simply want the status quo in place. At what price? high ticket trices, limited seats and inefficient service (delays and cancellations). Put in competition and you get better and faster service at a much lower price. And who's the clear winner here: the flying public.
And when people travel and fly a lot, you can expect the general business climate to benefit as well, right? In fact, the number of passengers at Clark grew by leaps and bounds literally, from only 7,800 in 2003 to 471,000 in 2006 and consequently, hotel rooms in the area grew by over 50%. I'm sure a lot of these people were on business trips, scouring the area for possible business opportunities. I mean the economic value is quite clearly, very obvious.
I hope Gloria won't cave in to the lobbying efforts of the dominant carriers. This is the same scenario in the nineties when PLDT moved heaven and earth to resist the liberalization of the telecommunications industry then (despite the fact that the back log for fixed-line applications were as long as several years!). Look at PLDT now. It has become even stronger and more profitable.
But then again, the benefits of opening the airport in Clark have been tremendous. Not only were a lot of Filipinos able to fly abroad and back cheaply, it has dramatically increased not only tourism activities, but business opportunities in the Central Luzon area (Clark-Olongapo).
This is again a classic oligopoly case wherein a few dominant carriers simply want the status quo in place. At what price? high ticket trices, limited seats and inefficient service (delays and cancellations). Put in competition and you get better and faster service at a much lower price. And who's the clear winner here: the flying public.
And when people travel and fly a lot, you can expect the general business climate to benefit as well, right? In fact, the number of passengers at Clark grew by leaps and bounds literally, from only 7,800 in 2003 to 471,000 in 2006 and consequently, hotel rooms in the area grew by over 50%. I'm sure a lot of these people were on business trips, scouring the area for possible business opportunities. I mean the economic value is quite clearly, very obvious.
I hope Gloria won't cave in to the lobbying efforts of the dominant carriers. This is the same scenario in the nineties when PLDT moved heaven and earth to resist the liberalization of the telecommunications industry then (despite the fact that the back log for fixed-line applications were as long as several years!). Look at PLDT now. It has become even stronger and more profitable.
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