The Philippines government is seeking a high-level diplomatic meeting with Kuwait to break a deadlock agreeing fifth freedom rights (FFR) for the flag carriers of both countries. According to Felix Eduardo, an official with the Department of Foreign Affairs in Manila, the talks are necessary as Kuwait's Directorate General of Civil Aviation (DGCA) and Civil Aeronautics Board (CAB) of the Philippines have been able to come to terms over the issue. No date has been fixed for the meeting but it is expected to be soon.

The disagreement has been brewing for several months when the Kuwait DGCA blocked Philippine Airlines (PAL) from using its FFR on the Manila-Dubai-Kuwait route.

PAL had sought to introduce four times weekly flights on the route using Airbus A300-300s from January 17. The DGCA blocked this move, arguing that PAL is only authorized to carry passengers and cargo between Manila and either Dubai or Kuwait. It gave no reason for interpreting the FFR this way.

PAL is the Philippines’ designated FFR carrier under the bilateral air services agreement initially signed in 1977 by the two countries. The agreement was enhanced in April 1995 and then again in February 2009. According to the airline’s president and chief operating officer Jaime Bautista, Kuwait’s decision to block its FFR undermines the reciprocal principles of the air services agreement and creates an unequal playing field.

In retaliation, on March 27, the Philippines CAB suspended Kuwait Airways FFR on the Kuwait-Bangkok-Manila route. However, the CAB increased the carrier's Kuwait-Manila flights from six weekly to eight, which PAL opposed vehemently. Kuwait Airways, which has had FFR rights with the Philippines, is at liberty to increase the frequency any time.

The Gulf states are an important market for PAL, with an estimated 225,000 Filipinos working in Kuwait alone. Another 535,000 work in Qatar, Dubai, Oman and Abu Dhabi.

In a separate development, PAL will use its FFR to launch daily flights between Taipei and Osaka on June 25 using Airbus A321s. Currently PAL operates 10 flights between Manila and Taipei and twice daily between Manila and Osaka.