CDC, ground-handling firm end dispute

CLARK FIELD, Pampanga — A controversy that would have stalled the full operations of the Diosdado Macapagal International Airport (DMIA) here has been ironed out in a compromise agreement between the state-owned Clark Development Corp. (CDC) and an airport ground-handling firm.

Emmanuel Angeles, CDC president and chief executive officer, said both parties have also agreed to drop all court and labor cases they have filed against each other.

The agreement was signed between the CDC and the Airport Handling Agents International Inc. (AHAI) which, in 1997, entered into a joint venture agreement granting it the exclusive rights to ground-handling operations at the DMIA.

When Angeles assumed as CDC chief last year, he, however, terminated the joint venture agreement, arguing that it violated the constitutional provision banning exclusive rights over public utility operations.

He noted that other firms, such as the Philippine Airlines (PAL) and the United Parcels Service (UPS), had ground-handling capabilities too.

Angeles’ move led to the filing of criminal and labor cases filed by the CDC and AHAI against each other.

"All these cases have been dropped to pave the way for the compromise agreement," Angeles said.

The compromise agreement also led to the signing of a new lease contract for AHAI up to Sept. 30 this year, canceling its exclusive rights.

The CDC, however, exempted the company from paying any rental fees at the DMIA for five years up to Dec. 31, 2006.