PH may lose good rating due to labor row at CAAP

/ 12:25 AM April 21, 2016

Flag carrier Philippine Airlines urged the country’s air safety regulator to immediately resolve a brewing internal labor row or risk broader repercussions from the global aviation sector.

PAL was reacting to the labor unrest among members of the employees union of the country’s Civil Aviation Authority of the Philippines.


The CAAP labor union is peacefully protesting the recent suspension of their salary increases and bonuses, specifically for technical staff. Streamers are now up on 23 air control towers all over the country bearing the distress call “Mayday Mayday.”

PAL said a long-drawn conflict between CAAP labor and management on the issue of salaries/bonuses and protest actions, albeit peaceful, would paint a negative picture of the country’s aviation industry.


“It is important to protect the Philippines’ return to Category 1 status, a reflection of the country’s compliance to international safety standards set by the ICAO or International Civil Aviation Organization,” PAL president Jaime Bautista said in the statement.

“Any perception of disunity in the civil aviation sector may affect the status the country has earned,” he added.

The Philippines was granted Category 1 status by the United States Federal Aviation Administration in 2014 after being downgraded six years prior.

In downgrading the Philippines, the FAA said the country “lacked laws or regulations necessary to oversee air carriers in accordance with minimum international standards.”

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TAGS: Business, CAAP, Civil Aviation Authority of the Philippines, economy, Labor, News, Philippine Airlines, Rating, row
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