As global airlines ambition to lift all border restrictions for travel by the end of the year , Philippine carriers worry they may be left out in a post-pandemic era in the absence of government aid.
Bobby Lim, chairman of the Air Carriers Association of the Philippines in a forum hosted by the Australia-New Zealand Chamber of Commerce yesterday, local airlines have received only P800 million from government, in the form of deferment of charges and waiver of some fees.
Lim highlighted the importance of government aid to airlines which render the important public service of transporting people of providing connectivity between countries and between continents.
“It’s good and bad. It’s bad for those that have not received the government aid, just like the Philippine carriers. Philippine carriers have hardly received any government support,” he said.
Lim said once the new coronavirus diseases is finally vanquished, the competitive landscape will favor and give advantage to those airlines that have received state aid.
“This affects the ability of Philippine carriers to compete and serve the Philippine market,” he said, adding 55 percent of all international passengers in the country are carried by local carriers.
He said promoting international travel should be supported with resources “so that by the time that (post-COVID) happens, we can hit the ground running.”
Local carriers registered 85 percent decline in the number of passengers carried in 2020 and are bound to lose P65 billion this year. From 2.28 million passengers carried in December 2019, the number went down to just 10 percent of that volume in December 2020.
From 10,769 in December 2019, the number of flights fell to 2,975 in December 2020.
In the same forum, Kelvin Lee of the International Air Transport Association said the group is working with governments and other stakeholders on an aspirational target of no-border restrictions, including the lifting of quarantine measures by Dec. 31, 2021.
“This is a global effort, and we are in active discussions with governments around the world, including various departments and agencies here in the Philippines,” said Lee as he noted the importance of reopening tourism in the Philippines.
He cited tourism as a significant source of consumer spending and contributor to the GDP of the Philippines: $ 11 billion in revenues or for 25 percent of the GDP that supports 1.3 million jobs.
Tourism Secretary Bernadette Romulo-Puyat for her part said as the Philippines gears for the reopning of tourism, the government is aiming for diversification towards high- value, low -density and low impact tourism to transition to a better normal.
“We believe that the days of mass tourism are over, and that the new normal of travel will feature more sustainable travelers,” she said.
Puyat added the government will also tap bespoke or tailor-made or personalized vacations and small group travels.
