Manila Standard
Monday, September 14, 1998
Emil P. Jurado

I got an urgent letter from DoTC Undersecretary Josie Lichauco, formerly DoTC secretary after Secretary Arturo Enrile died, in connection with the controversial grant of a temporary permit to the Japanese-owned CLA Air Transportation by the CAB.
According to Josie there was no pressure, political, financial or otherwise exerted on her as ex-officio CAB chairperson, nor, to her knowledge, on the other members of the former CAB board, Josie added. "For my own, I can swear on my life and in God's eyes, that I received no material or financial consideration," Josie wrote.
The former DoTC secretary, now undersecretary said that CLA Air Transport's six-month temporary permit was granted according to the DoTC policy of liberalizing air transport. PAL had downsized its operations and given up their missionary routes. It had already utilized quite a number of frequencies to Narita, Japan. If within six months nothing substantial is undertaken by the grantee, the permit is either revoked or it lapses, she said. The permit lapsed last Sept. 9.
Josie also explained that because of the Japanese dimension in this joint venture, the Japanese ministry of transport approved the release of the six slots to CLA. PAL had long been trying to get these additional slots, to no avail. Josie said that CLA had applied in December 1997 for the frequencies before the CAB, while PAL applied for the same frequencies only in July 1998.
Josie noted that there was no violation of the Constitution which mandates 60 percent ownership of Filipinos as the basis of the issuance of certificates of public convenience. CLA is 49 percent foreign owned.
She said the SEC saw no infirmity in the CLA application. It is not a domestic but an international air cargo carrier. She cited CAB's approval of four foreign corporations with 100 percent foreign equity engaged in air cargo between Japan and the Philippines. The nationality rule does not cover CLA because it is not expected to and shall not engage in domestic activities, she argued.
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I must state here that I cannot believe Josie granted CLA that temporary permit because of some pressure, financial or otherwise. I know she is one public official who cannot be pressured, much less bought.
As for the argument that the nationality rule does not apply to CLA I can admit that.
However, I still maintain that there should be a policy that before CAB can grant a permit, temporary of otherwise, to any airline, there must be an assurance that it can deliver or meet certain conditions.
CLA has no airplane nor pilots to speak of. In other words, it's only a paper airline.
I talked to DoTC Secretary Jun Rivera, a former CAB administrator himself, and his undersecretary, Willie Evangelista, about this issue. They both agreed with me that the CAB must have a clear policy on granting permits to airlines cargo or passenger.@