CAB Slapped 1.8M Pesos Fine On Emirates

MANILA, Philippines – Top Middle Eastern carrier Emirates Airlines has been slapped with a P1.8 million fine by Philippine regulators.

The Civil Aeronautics Board (CAB) said it imposed a P1.8 million fine on Emirates for selling tickets for a third additional Manila-Dubai route without first getting its approval.

Carmelo Arcilla, executive director of CAB, said Emirates violated rules when it sold the tickets for flights until October 2015.

Emirates was only given a 30-day extension or until December 26 to operate the extra flight (in addition to its two daily flights) between manila and Dubai. The airline had earlier received the first 30-day extension which expired on November 26.

“The law prohibits an airline from selling flight services without authority to operate such flight, obviously for reasons of public policy that seeks to protect the public from the hazards arising from the uncertainty and unreliability of an unauthorized flight,” Arcilla said.

Arcilla noted CAB has already ordered Emirates to stop selling tickets for the third daily flight beyond December 26.

“Emirates is ordered to desist from selling services for a third daily flight between Manila and Dubai, vice versa, beyond December 26, which is the expiration date of the second 30-day period it is allowed to operate a third daily flight,” he said.

The CAB decision comes after Philippine Airlines and Cebu Pacific stepped up its offensive against Emirates over what it called “excessive” Manila-Dubai flights.

“Emirates has already been granted and unfair and unwarranted frequency advantage, by operating a third daily frequency beyond what is allowed by the UAE-Philippines agreement. An imbalance has been created: Today, UAE airlines operate 5 daily frequencies to and from the Philippines, whereas Philippine carriers only operate 3 daily frequencies between the Philippines and UAE,” PAL and Cebu Pacific said earlier.

The two Philippine carrier are also opposing the proposed new air talks between the Philippines and the United Arab Emirates.

“Negotiating any new agreement with the UAE at this time would only serve to reward Emirates, the UAE’s biggest airline, for having blatantly disregarded the authority of the Civil Aeronautics Board (CAB) by continuing to offer and sell flights without the approval or authorization of the CAB. Defiance of our regulatory authorities should be appropriately penalized rather than handsomely rewarded,” they said.

Last October, CAB turned down Emirates’ petition to use PAL’s unutilized frequency until March next year, but the carrier filed an appeal.

For its part, Emirates said it has already spent a total of $99.2 million in the Philippines including fuel uplift, aircraft landing and handling costs, in-flight catering, advertising, and area overheads.

“Emirates has proven time and again that it is committed to the Philippines’ growth. From the first Manila-Dubai flight we offered in 1990 to the ones in operation today, we will continue to serve the Filipino people,” Emirates senior vice president for aeropolitical and industry affairs Salem Obaidalla said.

Emirates Philippines country manager Abdalla Al Zaman said said they remain committed to the country.

“As we look forward to 2015, we will still uphold our commitment to providing innovative products and the highest quality to customers, shippers, and business partners in the aviation and travel industries. Emirates passengers can certainly expect for more,” he said.


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