Measures in case of PAL strike insufficient, warns regulator

By Paolo Montecillo
Philippine Daily Inquirer
First Posted 09/15/2010

CONTINGENCY MEASURES being prepared by the government will not be enough to cover gaps that will be left open by Philippine Airlines (PAL) in case a workers’ strike cripples the flag carrier’s operations.

The Civil Aeronautics Board (CAB) said most airlines have their own flights to worry about, and few have spare aircraft to serve routes on a short-term basis.

“As a matter of policy, most airlines have all of their assets deployed,” CAB Executive Director Carmelo Arcilla said in a recent interview.
“There will be unavoidable gaps,” he said.

President Benigno Aquino III has said if PAL’s current labor dispute escalates into a work stoppage by employees, the government plans to tap foreign and local airlines to take PAL’s flights.
Last year, PAL carried close to nine million passengers, making it the country’s largest carrier.
This was the same strategy the government used over a decade ago when a similar workers’ strike halted PAL’s operations, leading to the airline’s brief closure.

At that time, some of PAL’s routes were given the Hong Kong-based Cathay Pacific.
The interest of the riding public, the government said, would go before the survival of the embattled airline.

“We’ve been talking to other airlines already but it’s difficult to imagine that there will be a smooth transition,” Arcilla said.

Arcilla declined to mention the names of the airlines the government has already approached. But he noted that these are the ones that currently serve routes exactly the same or similar to those being flown by PAL.

The government also wants to fast track the implementation of an “open skies” policy which opens up the country’s aviation sector for the easier entry of foreign carriers.

PAL has not opposed the implementation of an “open skies” regime. However, officials have urged the government to ensure that any such policy is implemented fairly.

PAL president Jaime Bautista has said the airline might find it difficult to compete with foreign carriers because most of these enjoy the financial backing of their respective governments.