Airlines seek more gov’t financial assistance

The Air Carriers Association of the Philippines (Acap) is urging the government to pass added stimulus packages as the airlines shed workers during the COVID-19 pandemic.

Roberto Lim, vice chair of Acap, asked for more support beyond the passage of the Bayanihan to Recover as One Act, whose final financial support to the aviation sector has yet to be determined.

“We hope there are additional financial stimulus packages of support that are forthcoming so the airline industry in the Philippines can recover,” Lim said during a recent business forum organized by AirAsia Philippines.

Acap’s members comprise the country’s three major airline groups: Philippine Airlines, Cebu Pacific and Air Asia Philippines.

It sought government’s intervention, including the need to extend emergency loans and credit guarantees, as early as last March when strict lockdown measures were implemented to cut the spread of COVID-19.

The appeal comes as airlines shrink their fleets and continue layoffs, with PAL being the latest after announcing job cuts of up to 35 percent, affecting more than 2,700 employees.

During the forum, Lim welcomed the passage of the Bayanihan to Recover as One Act, which would allow airlines to tap loans and obtain relief from regulatory fees. Moreover, the law allows them to substitute refunds with travel vouchers, helping them conserve critical cash to continue operations.

“Government has been cooperative in our requests,” Lim said. “What we are waiting for is more financial support.”

Lim said the major part of the industry’s dilemma was the “slow” restart of flights as most travel restrictions remain in place. He urged the government to allow flights with added antigen screening measures.

“We are requesting the LGUs (local government units) to embrace these initiatives of Acap and open up their cities to more flights,” he said, adding “risk management is the name of the game.”

“If we are able to adopt these processes, systems and protocols, we can restart our economy safely,” he said. INQ