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Wednesday, January 16, 2008
PAL affected by RP air safety downgrade (1:12 p.m.)
MANILA -- Revenues of flag carrier Philippine Airlines (PAL) would be affected if the Air Transportation Office (ATO) will fail to comply on the safety standards of the International Civil Aviation Organization (Icao).
Jaime Bautista, president of PAL said the January 8 decision of the United States Federal Aviation Administration (FAA) downgrading the safety ratings of the Philippines is imperative and needs to be addressed the soonest possible time.
"If the Philippines does not recover the Category one rating within 18 months, it will seriously affect our plans to add flights and increase capacity to US and Canada," Bautista said.
"We (PAL) are urging the government to exert effort to recover its Category one standing," he added.
According to Bautista the restrictions would cost them at least 10 percent in foregone revenues.
Last week, FAA demoted the Philippines' rating from Category one to Category two after the ATO failed to comply with the six out of seven safety standards of Icao.
Under Category two, PAL will be barred from increasing flights to US and its territories and will not be allowed to change the type or number of aircraft used on these routes.
Which means PAL cannot increase its existing 33 flights a week to US. This also prevents PAL from opening services to Saipan and Koror in Palau.
Bautista said North America is PAL's biggest regional market, contributing 30 percent to their total revenue. While he said the downgrade is not directed to PAL, it is also their concern.
"As for PAL, we are willing to help government and we remain committed to improve our services despite any restriction on expansion," the official vowed. (MSN) |
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