A bill providing relief for the country’s domestic air carriers is being pushed by Rep. Sharon S. Garin of the AAMBIS-OWA Party-list.
According to Garin, the Philippine air transport sector faces an “existential threat” after the lockdown measures to stem the spread of Covid-19 has shut down commercial air travel.
The lawmaker cited the warning by the Center for Asia Pacific Aviation that most airlines will go bankrupt as passenger planes remained still on tarmacs around the world.
Because of this, Garin filed last Wednesday House Bill 9324 or the proposed Air Carriers Relief Act to provide economic relief for the air transport sector by extending loan payments, interest-free loans, loan guarantees and regulatory reliefs.
As prescribed in the bill, a “domestic air carrier” is a company duly organized and existing under Philippine laws with a legislative franchise or a certificate of public convenience and necessity from the Civil Aeronautics Board and an air operator certificate from the Civil Aviation Authority of the Philippines.
A total amount of P40 billion shall be appropriated for the following interventions: interest-free loans from the Development Bank of the Philippines, Philippine Guarantee Corp. Special Guarantee Fund, regulatory fees and mandatory rapid testing.
The bill also highlights the proposed temporary relief from payment of excise taxes on purchases of fuel by Philippine air carriers for a period of two years.
With major carriers acknowledging huge losses due to prolonged lockdowns and mobility restrictions, Garin acknowledged the vital role of the Philippine air transport sector in the economy and warned that its members are facing an “existential threat.”
“Despite the debilitating effects of the lockdown to its operations, airline companies continue to support the nation in its recovery by continuing to fly our displaced overseas Filipino workers and assist in the delivery of medical equipment to key cities, including logistics support of the vaccine roll-out,” Garin said.
As the major facilitator of the flow of goods, investments, and people, Garin said that any economic recovery package can never be considered as economic stimulus without reliefs granted to the air transport sector.
With the catastrophic impact of Covid-19 on aviation industry, Garin also said airlines in different jurisdiction are already talking, issuing and releasing relief packages like the Australian Federal Government, New Zealand, India, Canada and US.
“It is time for the true Bayanihan to recover and arise as one by extending assistance that our government can to support and help rebuild the air transport sector,” she said.
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