Airlines seek 10% fare hike

Barely two weeks after an increase in domestic and international air fares, three local carriers have asked the Civil Aeronautics Board (CAB) to adjust rates anew by 10 percent.

Carmelo Arcilla, CAB deputy executive director, said yesterday that flag carrier Philippine Airlines (PAL), Cebu Pacific and Air Philippines have asked for a new rate adjustment due to rising operational costs and the need to secure their fuel supply.

"They filed petitions with CAB. The Board is still studying their petitions. CAB will look into the merits of their requests. Hearings are still being conducted on these," Arcilla said.

The three carriers earlier raised domestic air fares by P300 and international fares by $6 after global aviation insurers imposed higher insurance premiums.

The increase in insurance payments came after the terrorist attacks on the World Trade Center in New York and the Pentagon in Washington last Sept. 11, in which hijacked airliners were used as suicide bombs.

The US government suspects alleged international terrorist Osama bin Laden and his al-Qaeda network to be behind the attacks that left around 6,000 people dead or missing.

To smoke out Bin Laden, combined US and British forces have launched air strikes in Afghanistan whose ruling Taliban have sheltered the terror suspect.

The ongoing, week-long air strikes have increased tension between the US and Islamic nations. And should a full-scale war erupt, the global supply of petroleum products might be affected because fuel primarily comes from Arab countries.

Transportation Secretary Pantaleon Alvarez earlier assured that the air fare hike was only temporary.

"It will be in effect while the requirement is there. When the global insurers reduce the insurance payments, the fares will have to be rolled back," he added.

Alvarez maintained that airlines will have no choice but to comply with a rollback order because otherwise, their fleet would be grounded.