Metro Manila (CNN Philippines, May 13) — A lawmaker has filed a bill seeking a ₱40-billion relief package for pandemic-battered Philippine air carriers.
House Bill No. 9324 or the Air Carriers Relief Act was filed by House Economic Affairs chairperson Rep. Sharon Garin.
“It shall recognize the vital role of the transportation sector in facilitating the flow of goods, people and investment. Towards this end, it shall be a priority of the government to provide reliefs for any threat to the existence of the air transport sector by extending loan payments, interest free loans, loan guarantees and regulatory reliefs during this challenging time of pandemic,” the bill read.
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The measure aims to provide breathing space for domestic airlines struggling to keep out of the red amid mounting losses brought by coronavirus restrictions.
The Air Carriers Association of the Philippines or ACAP sought assistance from the Duterte administration last year as airlines faced an “existential threat to their survival” amid lockdowns. However, its executive director Roberto Lim said no government loans were provided for airlines.
The government only waived aeronautical charges under the Bayanihan to Recover as One Act.
Under the Garin’s bill, the Development Bank of the Philippines (DBP) shall introduce an interest-free loan program for affected industry players amounting to ₱10 billion.
The bill said ₱2 billion would be the maximum loanable amount per domestic carrier.
To ensure air carriers could fulfill their loan obligations and strengthen their financial status, the Philippine Guarantee Corporation shall issue an expanded government guarantee program with ₱10 billion earmarked for its implementation.
Air carriers may also get relief from regulatory fees charged by transportation authorities, as the bill wants the national government to cough up ₱10 billion more to pay for the non-tax and non-duty fees and charges, such as navigational and airport charges.
Another ₱10 billion may be allocated for rapid testing of arriving and departing travelers to curb the spread of COVID-19.
Domestic carriers may also opt to limit refunds of affected passengers and convert them instead into vouchers for future trips, the measure stated.
