The government is looking at the request of airlines for the reduction in, or the temporary removal of, travel tax to encourage people to travel and help mitigate the impact of travel ban in China and its special administrative regions to combat the spread of coronavirus disease 2019 (COVID-19), according to the Civil Aeronautics Board (CAB).
The Air Carriers Association of the Philippines has also asked government to remove or reduce the landing fees to mitigate the revenue loss due to the travel ban.
The group proposed the waiving of terminal fees, parking, rent, licenses, take-off fees as w=ell as air navigation fees.
Carmelo Arcilla, CAB executive director, said the reduction or removal of the P1,620 travel tax is beyond the jurisdiction of the transportation agency and requires legislation.CAB has submitted the airlines’ requests to various government agencies.
CAB will soon issue an order granting airlines request to expand domestic services using the slot in the suspended international flights.
Arcilla said the COVID-19 outbreak has significantly dampened travel.
The number of no-show passengers has been raising and bookings are slowing down, he said.
The travel ban on China, Hong Kong and Macau has been imposed since last February 2.
“Overall, they’re (airlines) taking a hit specifically in the territories (China, Hong Kong and Macau) with travel ban,” Arcilla added.
The impact on Cebu Pacific is 30 percent and on Philippines AirAsia is as much as 51 percent.
The International Air Transport Association (IATA) in its initial assessment of the impact of the COVID-19 sees a potential 13 percent full-year loss of passenger demand for carriers in the Asia-Pacific region.
Considering that growth for the region’s airlines was forecast to be 4.8 percent, the net impact will be an 8.2 percent full-year contraction compared to 2019 demand levels. In this scenario, that would translate into a $27.8 billion revenue loss in 2020 for carriers in the Asia-Pacific region–the bulk of which would be borne by carriers registered in China, with $12.8 billion lost in the China domestic market alone.
