HOME PAGE ABOUT US CONTACT US SUBSCRIBE ADVERTISE ARCHIVES
TOP STORIES NATION ECONOMY COMPANIES SHIPPING OPINION PERSPECTIVE LIFE SPORTS MOTORING
SEARCH ENGINE
WWWOur Site
Anchored by Jonathan dela Cruz, Salvador Escudero, Boying Remulla, Teddy Boy Locsin and Alvin Capino
Monday to Friday
8:00pm-10:00pm

ARTICLE SERVICES
  • bookmark this page
  • print this article
  • view archive
  • Another blow to PAL:
    Forwarders migrating
     
    By VG Cabuag
    Reporter

    LOCAL companies which move shipments by air said they will no longer use Philippine Airlines (PAL) to handle their cargo after the national flag carrier suffered collateral damage from a recent downgrade issued by US aviation authorities on the Philippines’ Air Transportation Office.

    To avoid operational disruptions, aircargo firms will look for carriers which standards conform to international aviation rules, Jaime Roxas, president of the Aircargo Forwarders of the Philippines Inc., said last week.

    While the group admitted that it had earlier disagreements with PAL, it nevertheless expressed support for the national flag carrier owned by tycoon Lucio Tan. PAL had been a big casualty in the move of the US Federal Aviation Administration to downgrade to Category 2 status the Philippine civil-aviation system, because the downgrade comes with a warning to US citizens against traveling on Philippine carriers to and from America. PAL is the only local carrier flying to the US, and its trans-Pacific operation had been so lucrative it had plans to expand such this year.

    Still, Roxas said that air-cargo companies have no choice but to leave PAL, adding that their members are beginning to contract services of foreign flag carriers which would support their operations.

    “The government should address this immediately. Our flag carrier (PAL) is set to carry the burden of such downgrade and business from the country, both tourism and trade, would be transferred and enjoyed by foreign flag carriers,” Roxas said.

    He declined to say which foreign carriers would benefit most from the downgrade. “AFPI will continue to evaluate the situation to address this early any other possible effects of the downgrade in the movement of air cargo to and from the US,” he said.

    All stakeholders should help the government comply with the highest aviation standards and avoid being left out in trade and tourism, Roxas said.

    Earlier, the group disagreed with the country’s national flag carrier after it opposed the use of a new airway bill, as proposed by the International Air Transport Association.

    Last week, the United States downgraded the country’s airports from Category 1 to Category 2, indicating that Philippine civil aviation authorities failed to provide safety oversight of its air carriers in accordance with the minimum standards of International Civil Aviation Organization (Icao). A Category 1 rating is given if the country’s aviation authorities have complied with international regulations.

    The Philippines only complied with one out of the seven focused areas. The country failed in civil regulation, qualified technical personnel, technical guidance, certification and licensing, continuous oversight, and resolution of safety issues.

    President Arroyo appointed Transportation Secretary Leandro Mendoza to temporarily head the Ato. He was given three months to work on the compliance with Category 1 aviation standards.

    OTHER STORIES

    Government holds off on economic targets


    Tourism seen to hit $5.6B this year


    Asean poised for tourism renaissance


    DOF, senators still worlds apart in view on oil VAT


    Water, sanitation goals off-track


    Burning air-con system spews smoke in Naia


    Another blow to PAL: Forwarders migrating


    Peso gains most in 8 weeks after Fed rate cut


    So, who’s stealing now? RP victim of biopiracy–IPO


    BPOs join calls to retain tax holidays


    US slump may benefit OFWs


    Demand for OFWs rising in Australia