PH, Thailand easing airline ownership rules

The Philippine government has secured an agreement with Thailand allowing foreign-owned but locally incorporated carriers, such as the local unit of AirAsia, to continue operating there, the Civil Aeronautics Board (CAB) said.

- By DEXTER BARRO II

CAB Executive Director Carmelo Arcilla said he signed a third-country codesharing agreement with his Thai counterpart for Manila~Bangkok flights last week.

This agreement enables airlines from Thailand and the Philippines to sell flights operated by a third-country airline.

As part of the deal, both countries sought to amend their existing air services agreement to address the predicament of Philippines AirAsia Inc., the local arm of Malaysia-based low-cost carrier AirAsia, which operates as AirAsia Philippines.

Under the current air service framework, only airlines substantially owned and controlled by Philippine nationals are permitted to operate in Thailand.