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The Senate has approved on third and final reading House Bill No. 10442, which renews for another 25 years the franchise of Air Philippines Corp
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Air Philippines operates as PAL Express
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PAL Express is a sister company of Philippine Airlines
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Senate Committee on Public Services chair Senator Grace Poe said the approval will support growth in the transport and tourism sectors and help buffer the negative impact of the reorganization proceedings involving Philippine Airlines
The Senate has approved on third and final reading the bill that renews for another 25 years the franchise of Air Philippines Corp.
The company operates as PAL Express (PALEx) and is the budget carrier of Philippine Airlines.
House Bill (HB) No. 10442, approved by the Senate on December 16, renews Air Philippines Corp.’s franchise to establish, operate, and maintain transport services for the carriage of passengers, mails, goods, and property by air, both domestic and international, for another quarter of a century.
Air transport services include the maintenance and operation of hangars and aircraft service stations and facilities and other services of similar nature whichmay be necessary, convenient, or useful as an auxiliary to aircraft transportation.
HB 10442, filed by Quirino lone district representative Junie Cua and Palawan first district representative Franz Alvarez, was approved by the Lower House on November 22, and transmitted to the Senate on November 23.
Senate Committee on Public Services chair Senator Grace Poe, in a statement, said the approval of PALEx’s franchise renewal will support growth in the transport and tourism sectors and help buffer the negative impact of the reorganization proceedings involving Philippine Airlines.
“Globally, the aviation sector is one of the hardest hit by the ongoing pandemic. We must do our part to help an industry that employs thousands of Filipinos,” said Poe, who is also sponsor of the bill.
PALEx is currently the third largest domestic airline in the country with 770 employees and supports another 1,600 jobs in related industries. It mainly serves secondary gateways such as Clark and Kalibo airports.
While PALEx saw its passenger load factor decrease by 70% in 2020 due to the COVID-19 pandemic, Poe noted it has managed to stay in the black although at the cost of laying off 32% of its workforce.
“With the renewal of Air Philippines’ franchise, the legislative had done what it needed to do so it can fly high and rehire the people it lost and create more jobs,” Poe said.
PALEx was incorporated in the Philippines on February 8, 1995 while commercial operation began on February 1, 1996.
It operates a fleet that includes Airbus and Bombardier aircraft.
PAL Express is part of the Lucio Tan Group.
