Business World
Monday, September 21, 1998
As the impending closure of the Philippine Airlines, Inc. (PAL) poses a detrimental impact to the country's economy, the closure of two other domestic airlines over the weekend has caused a "double-whammy" on the already ailing industry.
The Air Transportation Office (ATO) has suspended the Air Philippines, one of the newest and the second-largest airline, after its failure to comply with safety requirements. This, after the Panlilio-owned Grand International Airways was forced to cancel its flights due to unpaid insurance and fuel hills. Other details of the grounding were unavailable.
This twin moves leave a serious strain to the economy as the flow of the cargo goods of the country will be affected. PAL, the country's flag carrier, announced on Thursday it will shut down operations on September 23 due to unresolved labor conflicts.
In a letter to the Air Philippines, ATO head Jacinto F. Ortega. Jr. justified its decision on the airline, saying that it "...show(s) a noncompliant attitude which jeopardizes the safety of the flying public."
ATO's safety audit, conducted from August 31 to September 11, likewise showed "deficiencies in (Air Philippines') aircraft certification, manuals, technical records and aircraft inspection procedures.”
In a press briefing Friday, Mr. Ortega said the lifting of the airline's suspension would depend on how the airline would comply with their set standards. Mr. Ortega said that lie will not lift the suspension even as to till in the space that PAL would leave after closure. "If I ant not satisfied with the safety, of the airlines. I will not lift the suspension. This is my obligation to the riding public," said Mr. Ortega.
Meanwhile the government said it is readying alternatives to ease the potentially devastating effects of the country's flag carrier's closure. "We are looking at all the alternatives to cushion the impact of PA L closure (to domestic activities)." said Department of Transportation and Communication (DoTC) Undersecretary Willie Evangelista. He added that in their meetings, one of their options is to lease the PAL's planes to other domestic airlines. Previous reports said that the government also plans to allow other airlines to fly the routes of PAL and to allow foreign airlines to operate domestic routes. These options, however, are still under study of the department. "If only the Air Philippines is able to fly its planes, the impact (of PAL closure) will not be much," Mr. Evangelista told reporters during the press briefing. "I am still hopeful that PAL will not close and the president may find a solution for that." he added. Air Philippines and Grand Air cannot be reached for comment. — May Czarina A. Baetiong
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