Header Ads


Local airlines hopeful over P700-million grant from gov't

Aviation Updates Philippines – Philippine-based carriers are seeking for government assistance after the COVID-19 pandemic hit the aviation industry hard. As Philippine President Rodrigo Duterte signs into law the “Bayanihan to Recover as One Act” or “Bayanihan II,” airlines are hopeful that the newly passed law would secure the recovery plan for the affected sectors during the pandemic, including local airlines.

About P700 million will be allocated to airlines, Air Carriers Association of the Philippines (ACAP) Executive Director and Vice-Chairman Roberto Lim told BusinessWorld. ACAP comprises five airlines, Philippine Airlines, PAL Express, Cebu Pacific, Cebgo, and Philippines AirAsia. Each airline seeks to receive around P140-million loan assistance under the economic stimulus package.

He also noted the Bayanihan II mentioned grants on regulatory fees: “If the rules of the Department of Transportation (DoTr) say it is a waiver of fees, that will be a good assistance. ACAP carriers pay around P500 million per month. A waiver as distinguished from deferral will help.”    

In a phone message to BusinessWorld, Civil Aviation Authority of the Philippines (CAAP) Chief of Staff Danjun G. Lucas said: “We will be coordinating this with the DoTr as well as with the other agencies under the air sector, especially the airport authorities, considering that this will affect their respective operations.” 

The decision is now up to the executive branch to quickly come out rules so that the beneficiaries can follow.

Two major Philippine carriers have already filed billions of losses for the first few quarters of 2020; the government aid will contribute to airlines’ recovery, which affects our economy and thousands of jobs in the airline industry.

Photo from Joshua Cruz

No comments

The comments made below are the views of the commenter only. We reserve the right to remove comments that are offensive, harmful, or do not follow our community guidelines.