PHILIPPINES TO FORCE RESTRICTIONS ON TAIWAN’S AIRLINES

   The Philippine government has threatened Taiwanese carriers China
Airlines and EVA Airways with the loss of all rights to fly between Taipei
and Manila if the carriers do not agree to limit capacity on the route to
3,000 seats per week, Philippine news sources have reported.
   China Airlines and EVA are reportedly asking for 6,500 seats per week.
   The bilateral aviation agreement between the Philippines and Taiwan is
scheduled to expire at the end of the month.
   This is the latest move made by the Philippine government to limit the
rights of foreign carriers in an effort to protect its ailing national
airline Philippine Airlines. PAL, which still owes creditors more than $2
billion, blamed foreign competition for many of its problems in a
restructuring plan approved by the Philippine Securities and Exchange
Commission earlier this year.
   Emirates airline lost its right to fly to Manila from Hong Kong in
March. Philippine authorities this summer ordered civil employees to fly
PAL when traveling abroad. China Airlines recently lost its rights to serve
Manila.