2 Others Carriers Grounded

Philippine Daily Inquirer

Saturday, September 19, 1998

DOMESTIC air transport faced paralysis after two carriers were grounded a day alter Philippine Airlines, the country's flag carrier, served notice it would close down next week.

The Air Transportation Office suspended the operating certificate of Air Philippines, the country's second largest airline, for failure to comply with safety standards and requirements, specifically for operating procedures and aircraft maintenance.

A smaller carrier, Grand International Airways, canceled its flights because of unpaid insurance and fuel bills, employees said. No other details were available.

The shutdowns and the scheduled closure of Philippine Airlines pose a potentially devastating threat to the country, leaving many areas without air service.

In a statement, Air Philippines said it was trying to immediately comply with the requirements so that it could resume flights within 48 hours—starting when, it was not clear.

The suspension, contained in a letter signed by Transportation Assistant Secretary Jacinto F. Ortega Jr. ATO chief, was to take effect "upon receipt" by the airline concerned.

Air Philippines said its officials received the letter late Thursday afternoon.

The company's fleet consists of two brand new McDonnell Douglas 82s, eight Boeing 737s and four YS-11s.

It has "in the pipeline" an order for three brand new McDonnell Douglas 82s and four Boeing 747s.

In the same statement, Air Philippines expressed regret over the "temporary disruption" of its flights.

"We assure our valued customers that the company's commitment to world-class Filipino service will always be upheld by management," it said.

To back up such assurance, it said: "Our technical expertise includes foreign consultant, highly trained pilots and mechanics.

"This number of aircraft and highly trained crew will allow Air Philippines to service more local routes and eventually expand to maintain regular regional and trans-Pacific flights by the end of the year."

In his letter to the company, Ortega cited the findings of a safety assessment audit conducted from Aug. 31 to Sept. 11, which "taken totally . . . show a non-compliant attitude which jeopardizes the safety of the riding public."

The airline, Ortega said, also "lacked…an effective continuing analysis and surveillance system (that makes it) difficult to obtain an accurate assessment of maintenance performance on a day-to-day basis."

"They don't have any semblance of maintenance," he said. "They don't have the proper records. They don't even have the manuals. You cannot rely only on memory."

Asked about the possibility of lifting the suspension to help satisfy local demand if PAL closes down, Ortega said: “I will never lift the suspension ... If I'm not satisfied with the safety of the airlines. This is my obligation to the riding public.” Reports from Anthony O. Alcantara and INQUIRER wires