Local airlines appeal anew for gov’t aid as industry prepares for 'new normal'

The Air Carriers Association of the Philippines (ACAP), composed of the country’s leading airlines, has reiterated its call for a financial intervention from the government as the aviation industry prepares for the resumption of commercial flight operations in anticipation of Metro Manila’s shift to a more relaxed quarantine measure.

ACAP —comprised of Philippine Airlines, Cebu Pacific, AirAsia Philippines, Cebgo, and PAL Express— said it has been preparing for flights under “new normal” conditions once the national and local governments ease travel restrictions and quarantine requirements. 

As local carriers prepare for resumption of operations, ACAP reiterated its call for assistance under the proposed Philippine Economic Stimulus Act (PESA) through long term credit facility, working capital credit lines, credit guarantee arrangements, and temporary relief from navigational and airport charges.

“To be clear, we are not asking for a bail-out or dole-out from the government. What we are asking for is a hand-up to help airlines recover,” ACAP vice chairman Bobby Lim said.

“The liquidity problems faced by the Philippine aviation industry are very similar to the challenges that airlines all over the world are dealing with. Airlines all over the world are already in talks with their respective governments for relief packages and inclusion in stimuli programs, many of which have already been granted,” Lim said.

Local carriers earlier sought for the government to provide a credit guarantee scheme that guarantees the banking sector’s loans and credit lines, most of which are secured under colaterals, to remove its aversion to the poor credit risk of airline industry under the present operating environment.

ACAP also asked for access to emergency lines of credit to help fund six months of operations, perhaps longer if this crisis is extended, in order for the industry to remain viable until overall demand recovers.

The local airlines sought a waiver of all navigational and airport charges.

On ACAP-member’s preparation for resumption of flights, Lim said local carriers adhere to the safety protocols set by the Department of Health and Department of Transportation, as well as globally accepted standards set by the International Air Transport Association, the International Civil Aviation Organization, the European Union Aviation Safety Agency, and the World Health Organization.

“The aviation industry has always been held to a higher standard for safety and risk management versus other forms of mass transportation, and as such, processes and procedures that uphold the welfare and safety of passengers and personnel have been put in place to prevent the risk of infection from viruses and other contaminants,” he said.

“While details may vary among individual members of ACAP, the new normal for flights will include minimized contact between passengers and the airline staff, increased utilization of online and digital processes for check-in and boarding, intensified cleaning and disinfection of all aircraft and facilities, among others,” he added.

On top of changes in processes and procedures to intensify bio-security preventive measures, ACAP-members also use aircraft equipped with either an Environment Control System that continuously infuses fresh air across the cabin, or High Efficiency Particulate Air filters that traps viruses, bacteria and other contaminants with 99.99% efficiency—the same technology used in operating rooms of major tertiary hospitals.

ACAP has also been working with government agencies on implementing other measures which include allowing only passengers with confirmed flights to enter the airport as well as temperature checks and mandatory use of face masks for everyone entering the terminal building, according to Lim

The Philippine aviation industry, as a whole, is composed of airlines as well as catering companies, food-related enterprises, manufacturing firms, manpower agencies, and other allied and support service providers—majority of which are small and medium-sized enterprises (SMEs).

The entire industry generates over 543,000 direct and indirect jobs, ACAP said.

The aviation industry is also intertwined with the travel and tourism industry, as well as with the logistics industry that connects the Philippine archipelago to the rest of the world, it said.

The allied industries are labor-intensive and key drivers of the economy, encapsulating up to 5.4 million Filipino jobs.

“Air transport has facilitated the growth of the tourism and services industry by providing new and efficient ways of movement for people, goods and business,” Lim said.

“The connectivity established by airlines has boosted inter-island trade and commerce and the businesses of hotels, restaurants, and tourism enterprises—all of which are sectors that provide millions of jobs. The decrease in air transport activity does not only threaten airlines but also the local communities dependent on tourism,” he said.

ACAP members have continued to support government initiatives, even during the quarantine period through sweeper flights to ferry stranded passengers and cargo services to expedite delivery of much-needed goods—including medicines and personal protective equipment across the country, the local carriers’ group said. -MDM, GMA News