Philippines advised by IATA to make major aviation improvements

The International Air Transport Association (IATA) has made it clear to the Philippines’ government that major changes need to be made to infrastructure, proposed taxation and the Adoption of Smarter Regulation Principles to maximize social and economic benefits that aviation can bring to the country.
In a speech delivered at the Philippine Aviation Day in Manila, organized by the Air Carriers Association, IATA’s Director General and CEO, Alexandre de Juniac said that: “Aviation is vital to the Philippines. It supports 1.2 million jobs and $9.2 billion in GDP. The domestic network binds the country across 7,000 islands. International links keep families and businesses connected, and bring in tourists. But the social and economic benefits of air transport are at risk if the key issues of airport infrastructure, excessive regulation and taxation are not addressed.”
Where infrastructure is concerned, Ninoy Aquino International Airport was built to handle 30 million passengers but presently deals with 40 million; de Juniac has recommended enhanced runway and terminal capacities be implemented, while Clark International Airport should be developed as a secondary and not primary airport for Manila.
Citing new consumer protection regulation in the Philippines, de Juniac placed emphasis on the avoidance of fare caps, allowing pricing flexibility to continue, while the practice of overbooking should be carefully monitored to ensure that market trends are taken into account. He also made it clear that the Montreal Convention and ICAO’s principles for consumer protection are the model to follow, making it clear that what is being proposed is misaligned and oversteps the national boundary.
De Juniac also called on the Philippine government to abandon plans to implement a tourism tax and its proposed Green Fee. According to de Juniac: “The proposed Green Fee is misguided and should be abandoned. Governments through the International Civil Aviation Organization (ICAO) have agreed a global approach to climate change based on improvements in technology, infrastructure and operations. And there is an agreed Carbon Offsetting and Reduction Scheme for International Aviation—CORSIA. The cause of sustainability is best served by the Philippines supporting this global approach and volunteering to participate in CORSIA,”