PHILIPPINES’ AIRLINES COMPLAIN ABOUT ILLEGAL RIVAL PARTNERSHIP

Dino D'Amore
By Dino D'Amore December 20, 2010 14:43

PHILIPPINES’ AIRLINES COMPLAIN ABOUT ILLEGAL RIVAL PARTNERSHIP

Airlines from the Philippines have called on the Department of Transportation and Communications (DOTC), to investigate the allegedly illegal “partnership” between Singapore’s Tiger Airways and local Southeast Asian Airlines (SEAir).

Philippine Airlines, Cebu Pacific, Zest Airways and Air Philippines claim the arrangement between SEAir and Tiger, where SEAir uses aircraft leased from Tiger Airways and whose passengers buy tickets on Tiger’s website, skirts a constitutional restriction on the foreign ownership of companies in vital industries.

In the letter to the DOTC, the airlines states that “we earnestly request that the board launch a full and exhaustive investigation into the matter for the purpose of ascertaining, among others, that the marketing agreement entered into between SEAir and Tiger is in strict compliance with the terms of the CAB.”

The Constitution prohibits foreigners from owning more than a 40% stake in companies in industries such as transportation and telecommunications.

Dino D'Amore
By Dino D'Amore December 20, 2010 14:43
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