Philippine Airlines (PAL) wants a full open skies policy with a condition that all forms of government subsidies to fl ag carriers be abolished. Subsidies and all other forms of government aid could seriously distort competition, said the carrier.

PAL vice president Rolly Estabillio said his airline was ready to compete but stressed the need for equal opportunity for all in an open skies regime, noting that PAL’s competitors are supported by their governments. PAL said that if Asean wants to liberalize the airline industry to encourage tourism and cargo growth, governments must withdraw all subsidies to their fl ag carriers for the sake of fare competition.