DOTC chief says gov't obliged to protect PAL

Citing the strategic value of Philippine Airlines (PAL) that affects the national interest, Transportation Secretary Vicente G. Rivera Jr. stressed yesterday that government is forced to uphold the welfare of the national flag carrier -- no matter who owns it.

Rivera, concurrent chairman of the Civil Aeronautics Board (CAB), said the persistence on a "glaring lopsided deal" by the Kuomintang-controlled China Airlines and Eva Air, fully backed by the Taiwanese government, exemplifies a nation's inherent mandate to protect its own interest.

"It's the duty of the country to support its flag carrier regardless of whoever is seated in PAL. The interest of the country comes first," he emphasized, explaining that Taiwanese authorities for the second time, violated an interim agreement signed last Jan. 28 that provided for a compromise passenger load of 4,800 for each side.

He said Taiwan's earlier move to dishonor the interim agreement and unilaterally cut PAL's flight was unfair. "Imagine, we granted them 17 flights while we only got seven. It's unfair if we will be the one to initiate the talks once again," he added.

CAB's reactionary decision on the controversy, including its move to review other lopsided agreements, drew flak from Sen. Francisco S. Tatad and Tourism Secretary Gemma Araneta.

They lambasted CAB for protesting PAL, stressing the importance of foreign relations, investment, tourism and the welfare of Filipino overseas workers over the sole business interest of the national airline's majority owner, businessman Lucio Tan.

At the risk of being branded anti-Filipino for pressuring government to submit to all the wishes of foreigners, some interest groups also impute anomaly into President Estrada's support for PAL just because Tan is reportedly a friend.

PAL's executive franchise, however, has enabled all Filipino presidents -- from the time of Manuel L. Quezon up to the present -- to intervene with the affairs of the national carrier.

Apart from the fact that government has a stake in the company, Section 22 of the franchise stipulated: "the grantee shall not, without the previous approval of the President of the Philippines, lease, transfer, grant the usufruct of, sell, or assign this franchise... nor merge with any other company or corporation."

Apart from his inherent power provided for by the Constitution, the President in case of war, insurrection, domestic trouble, public calamity, or national emergency, as stipulated under Section 7 of the franchise has the right to order government to take over and operate the equipment of the grantee, paying just compensation for such use or damages.

However, under EO 219 or the Air Liberalization law issued by President Fidel V. Ramos in 1995, the Philippines has been maintaining air service agreements with several nations. EO 219 broke the monopoly of PAL and designated the Panlilio-owned Grand Air, despite the latter's lesser capability, as the other national flag carrier.

The law also allowed Filipino and foreign airlines to serve money making domestic routes while disallowing PAL to leave its unprofitable missionary flights as provided for by its charter.

Some former CAB officials under the Ramos administration were convicted by the Ombudsman for arrogantly acting against national interest, while others were investigated for suspicion of receiving multi-million bribe money during air rights' negotiations.