PHILIPPINES SUSPENDS CHINA AIRLINES RIGHTS

   In another move apparently made to protect its ailing national airline,
the Philippine government has suspended the rights of Taiwanese carrier
China Airlines to fly from Hong Kong to Manila.
   The China Airlines suspension comes after the government repealed the
right of Emirates airline to serve Manila from Hong Kong in May.
   Philippine regulators have said they are reconsidering an open skies’
policy adopted by the Philippine government earlier this decade. Philippine
Airlines requested regulators change their stance on open skies in a
restructuring proposal approved by the Philippine Securities and Exchange
Commission earlier this year.
   U.S. officials do not expect U.S. airlines to be affected by any changes
in the Philippines. Any new policy will likely target the rights of Asian
carriers on certain intra-Asian routes, a Philippine Airlines official said.
   Philippine regulators said they repealed the China Airlines rights
because the carrier flew a B747 on the Hong Kong-Manila route in violation
of a bilateral agreement.
   PAL has greatly cut its staff and aircraft fleet as part of a
restructuring plan to avoid liquidation. The airline owes more than $2
billion to creditors.