DOTC Eyes Contingency Measures

Today
September 18, 1998
News

THE Department of Transportation and Communications came up yesterday with contingency measures on the heels of reports that the Philippine Airlines will close down its operations.

Transportation Undersecretary Willie Evangelista said the department may allow other local airlines to fly PAL’s abandoned routes in the event the airline ceases operations.

However, Evangelista said department officials will first hold talks with PAL’s management and the PAL Employees’ Association.

“We are [only] helping [in] the discussions regarding contingency measures [because] it is not our responsibility.  The problem should be dealt with by the labor department,” Evangelista said.

If local airlines will be allowed to fly PAL’s abandoned routes, the Civil Aeronautics Board will require them to lease new aircraft.

Board Director Guia Martinez said this is to fill the gap in the domestic demand. “They would have to fast-track their expansion program,” Martinez said.

He added that the board also would have to hasten approval of pending applications by local airlines for international routes.

Another possibility is suspending the cabotage law that allows foreign airlines to ply domestic routes, Evangelista said. L. Lectura.