Closing PAL 'Disastrous' for Tourism, Says Gemma

Philippine Daily Inquirer

Saturday, September 19, 1998

 By C. O. AVENDAÑO

TOURISM Secretary Gemma Cruz-Araneta yesterday called on the travel industry to brace itself for the eventual closure of the Philippine Airlines.

"Closing the Philippine flagship will be nothing short of disastrous for (the tourism) industry," Araneta said in a statement.

Araneta urged local regulating bodies to allow other airlines, "even international ones" to take on the routes that will be abandoned by PAL.

By taking on the "commercial, domestic and missionary routes" formerly serviced by PAL she said the airlines would be able to ensure the viability of the tourist destinations there.

Araneta told a news conference Thursday that it would be difficult to compel other airlines to take over the unprofitable PAL routes but said the department would try to persuade them to do so.

Tour operators said the industry was in a "state of shock" following PAL management's announcement Thursday that the country's flag carrier will shut down operations on Sept. 23 after giving up on negotiations with PAL unions.

Officials of the Philippine Tour Operators Association (Philtoda) said they were still hoping that PAL would not push through with its closure plans, saying that this would be a "big blow" to them.

Philtoda Executive Director Vernie Villodres said that aside from travel agents and tour operators who handle tours in and out of the country, hotels and resorts would also be hard hit by PAL's closure.

Villodres said the industry had already been reeling from the effects of successive strikes by PAL unions early this year.

She said the tour operators were worried how they can bring their clients to destinations that only PAL services.

"We have to go back to the basics," Villodres said, noting that tour operators will have to use buses in lieu of planes to get their clients to some destinations.

Bernard Cepe, a Philtoda officer and Managing Director of Tours Spectrum, said that the flights to be abandoned by PAL would not only affect the tourism industry but business as well.

Cepe said domestic routes would suffer most because passengers can readily turn to other international airlines.

He said domestic airlines tend to service only main routes like Cebu and Davao, unlike PAL which services "missionary routes" or those which do not generate profit like flights to Laoag in Ilocos Norte, or Catarman and Calbayog in Samar.

Compounding the problem, Cepe said, was the fact that some domestic airlines are also in trouble with the Air Transportation Office over safety requirements.

Cepe said Philtoda, which was "caught by surprise” by the PAL announcement- plans to meet and present an official stand.