The State of Civil Aviation in the Philippines

In January 2010, the Ambassador for European Union, stated that the EU blocklisted the country’s flag carrier the Philippine Airlines and the No. 2 airline Cebu Pacific Airlines going to Europe.

When that pronouncement was made, Director General Alfonso Cusi, at that time headed the Civil Aviation Authority (CAA). It was deemed that under his management, things would be better, based from his track record as the former General Manager of the Manila International Airport Authority (MIAA).

The Civil Aviation Authority of the Philippines

In one of the forums I attended, in which, GM Cusi was the keynote speaker, he said that the civil aviation is the industry that caters to get others from commercial air passport operation that includes scheduled and non-scheduled air passport services, for paid or for hire. The navigational aircraft in furtherance of a business, the navigational aircraft from one place to another, or an aircraft operation involving the passport of passengers, cargo or mail, for remuneration.

In plain language, anything solid act there that is not a bird or belonging to the military.

He also tried to categorize civil aviation. First, the people that includes the pilots, airmen, mechanics, communicators, air controllers and agents running the business. Second, the process is the system, business processes, and how we conduct the offices. Third, the facilities including airports, hangars and other tangible assets. Fourth, to earn money to finance.

The people are the largest composition in the category. Now the question is why the Philippine civil aviation is included in the ITO list with special safety concern?

In fact, the Civil Aviation Authority of the Philippines (CAAP) is tasked to govern and oversee the civil aviation and the final approving body for visa licenses and clearances within the aviation industry. The CAA formerly Air Transportation Office, abbreviated as CAAP, is an agency of the Philippine government under the Department of Transportation and Communications, responsible for implementing policies on civil aviation to assure safe, economic and efficient air travel. The agency also investigates aviation accidents.

The CAAP was created in 2008 by virtue of the passage of the Bali Act 9497, required by international bodies to give the agency more teeth and power of governance in the aviation industry.

The CAAP is a government-owned and controlled corporation (GOCC). It has quasi-judicial authority and quasi-legislative power and is tasked to develop the aviation industry.

Thus, CAAP has a big task.

The State of Civil Aviation in the Philippines

If history permits, back in the 18th century when the driver of development was Maritime. Then in the 19th century there were trains; while the 20th century had the roads; and the 21st century has aviation.

Unfortunately, the Philippines has been a laggard and very much behind in the development of aviation. Just like in maritime, we lost the opportunity to beat the transit point is Asia, or at least in Southeast Asia, because of the lack in the infrastructure, despite of our being strategic in location.

Hence, the CAAP has the power and structure. It is an independent body and has a fiscal autonomy, unlike its previous organization.

In November 2007, our civil aviation industry was downgraded. This event became detrimental to the said industry. But those reports must be accurate.

In fact, the Big Apple’s or New York’s civil aviation industry is even worse. The Federal Aviation Administration (FAA) asked us certain reforms. We were given time and period. But what are the effects of downgrading? The only Philippine airlines flights were frozen and could not enter the US airspace; flights flying to the US were frozen and subjected for inspection while inside the United States.

Inspite of the Philippine Airlines (PAL) buying Boeing, this brand-new aircrafts are prohibited to enter the US. The problem were not the aircrafts but simply because its licenses are RP-registered and those manning it are Philippine-holders of licenses.

In October 2009, our aviation industry was again subjected for downgrading by the International Civil Aviation Organization (ICVO), which found eight areas of concern. The ICVO, after the oversight audit, issued a significant safety concerns (SSC), and saw deficiencies set by international standards related to aircraft operations, maintenance, personnel, certifications and supervision.

The SSC affects the operating status not only our air flag carriers but also our people and personnel where they subjected to discriminate their job applications. Filipino pilots applying to work in India and other countries, they are questioned. It’s embarrassing but that reality has to be solved. Those concerns remained unresolved.

The EU Downgrade

In March 2010, the European community blacklisted the Philippines. The EU issued orders that placed the country’s airlines on its watchlist as a precautionary measure to impose operating ban for our air flag carriers in and out of Europe. This was an action that gave them more teeth to enforce ICVO rules and regulations among its signatory members.

After the Philippines was blacklisted, there were foreboding similar actions done in similar countries by the ICVO like the one in Australia. We have to do more diplomatic work to avert that and fortunately we are holding and we must do it for the interest of the aviation industry. But because of blacklisting, the aviation industry suffered much. There were cancellations of travel booking from Europe. Few tourists are coming in. The Philippine economy is certainly affected.

Director General Cusi assessed that they must do something, not just for tourism and the CAAP, but for our country, as well.

In 2007, they were given advice that they were at certain altitude, and the advice is to go for higher altitude because there is obstruction ahead of it, but instead of elevating and going up, they remained static, and ICVO called their attention.

In 2009, they failed again to increase their altitude to correct the situation.

But in March 2010, they hit the plan before they reached the airport. So what did they do with this situation? Where did they fail?, he asked.

The common dominator of the FTA and EU reports is that CAAP failed because of their inability to perform our oversight function. They were tasked to guarantee compliance and safety related to international standards.

These organizations questioned our competence. Our civil aviation failed in the areas of business process and people. We were told that we were not complying. However, CAAP was transformed from an agency to a corporation; the reason the law was created to address these issues.

The two-year old CAAP remained to be in the crib, learning much from its previous mistakes. We need to seek assistance from SGV in auditing. Since we failed in business process, we are now adapting process required of us based on international standards and employed people to oversee that these processes are properly done.

In a meeting-conference with the EU, they acted on outdated information, and findings of ICVO were already corrected. CAAP invited them to come and see it for themselves but they have not yet replied. We have re-certificated our major airlines. But Europeans asked why the CAAP did it and the CAAP replied that because they keep of accusing our civil aviation. We did our very best. But the Caucasians, in defense as always, said they were not accusing us.

Co-Sharing of Resources with the Philippine Air Force

In terms of sharing resources with the military, meeting both the civil aviation and military air force requirements is possible. In fact, the Villamor air base is shared with civil aviation, including those in other places in the region. Co-existence with military requirements is indeed possible. Communication and coordination must always be maintained. Although, most of the operational requirements are different. Still, we share and co-exist with them.

In fact, Cebu Pacific, a commercial airline, gets some pilots from the air force. Airforce is for the defense. For civil aviation, management has to sit down with air force officials to jive with the requirements of military airforce and complement each other’s needs.

What is in store to Philippine civil aviation industry? Despite of global financial crisis, the Philippine civil aviation is growing and recorded a high growth in air travel traffic.

Our country has the best record in Southeast Asia’s region in terms of civil aviation.

Our domestic travel registered 30 percent growth due to the performances of Cebu Pacific, PAL, Air Philippines and other airlines. He believed that there are more opportunities to come.

But will the growth continue? He affirmed that given the 90 million population of the country, the projections on air travel will grow. How recently, the travel percentage is approximately around 15 percent only that is very low.

Problem on Infrastructure

But the country’s key problem is infrastructure. The civil aviation were not downgraded and downlisted by EU because of the facilities. But the problem actually is traffic jam especially in Metro Manila where the waiting time can go beyond 30 minutes.

The CAAP is trying to rationalize this issue.

Also, around 20 to 30 percent of air traffic is handled by MIAA in general aviation, and part of which, is training flights. Training flights will be relocated soon to give way to commercial flights. We want to push commercial traffic to Clark, but there are many things to be done.

But what’s next for Philippine civil aviation?

The good news is that the CAAP recently signed an IPO letter requesting that we be removed from the SSC list in its website. Hence, there is a need to coordinate with CAAP the process and proper rules to make the lifting official. Furthermore, once the SSC is lifted, the ban by EU will also be lifted, including the one by the FAA.

Protection of the Filipino Air Travelers

Brigadier General Reynato Jose, on the other hand, commended the speech of Director General Cusi. He said that the former’s presentation was enlightening and for giving a comprehensive insights on the country’s civil aviation.

In his reaction to the Director-General’s presentation, he stated that the Europeans caught immediately his attention. He said that it is the role of the CAAP to protect Filipino air travelers, whether in local or international flights, caused by the aftershock brought about by FAA reports. As an introduction to all, CAA became the Bureau of Air Transportation (BAT), and later became Air Transportation Office (ATO).

There was a constant change. The organization remained the same, from an authority to a bureau to just an office, not in order to cope in aviation causes. Then we later had the CAAP through a Republic Act 9497.

Regarding the downgrading, the Congress was compelled for the passage of RA 9497. Hence, the CAAP was the equivalent of NTSP in the United States.

In his last note, he was hoping that the passage of RA 9497 was a positive sign for the betterment of the civil aviation in the country.

Joint Use of Facilities

Lieutenant General Oscar Rabena, Commanding General of Philippine Air Force, was the second to comment on the presentation of speaker. In his comment, he said that, the state of the civil aviation is important to the industry. In the case of the Philippine Air force, in relation to national security, the state of the air force facilities must be considered.

In 1985 ATO granted an agreement for joint use of facilities and there were cooperative activities between the Philippine Air Force and the civil aviation industry. Many permanent airforce joined the civil aviation. As part of the MOA for the joint use and access and operations of the facilities for airport security; to assist each other for mandated missions and functions including training, search and rescue, flight safety and logistics.

In particular, there are articles in our laws that look onto joint trainings, just like Article 6 of the Defense Resolution. The airforce has set its technical people on job training. To date there are nine paramedics, 17 undergoing on the job training, and more. In terms of facilities, we built the clinic airforce ATO joint use committee where some air force personnel has access of it in Tagaytay.

CAAP hosts some of our operations group. They help in assisting our agency through search and rescue operations. In partnership with CAAP, we have engaged with civilian staff to further enhance our engagements and professional dealings. By and large, what the PAF is doing, to support civil aviation in the country. We hope the CAAP is doing the same with the PAF.

Implications to the Tourism Industry

Director General Alfonso Cusi, deemed that the civil aviation has partnered with the Department of Tourism (DOT) on local and international tourism. He believed that the airline industry must be given certain incentives in their operations in Mindanao, and he is promoting that.

DOT as well has been coordinating with CAAP. In fact, DOT seeks reports from CAAP to service Mindanao air routes. In terms of transport security, this is under the umbrella of OTS under the DOTC that looks at and ensures security. In the Philippines, we have MIAA and have police security that handles security of each airport. As part of security, we have comparable competence with our neighboring states and developed countries. This is an issue that is a continuing process.

Furthermore, Peter Wallace, stated that traveling in the Philippines has now become a common thing. The archipelago is vast but is connected by commercial airlines.

Plan in Modernizing CAAP

Dr. Amelia Ancog, however, commented that there is a plan for CAAP to modernize it as an authority into a corporation. Does this mean that your office once it becomes a corporation will render more income that would be used for buying facilities and employing people. Will it be like a GOCC. During the time of President Marcos, GOCCs have regulatory powers. Does this mean that your office as a corporation has become more efficient, viable, and stronger, asked.

General Alfonso Cusi, admitted that CAAP is a Government Corporation. It has a legal personality that under law the office has been given more teeth and power to renovate and regulate the aviation through transformation. The best way is create a body that is beyond politics. This is to professionalize the people and achieve international standards as prescribed internationally. We have to govern democratic regulations. The revenues must be used wisely. We must have money coming in to fund projects. We need to learn from the expats. There must be shared culture. I also believe in technology transfer. Use expertise of expats and Filipino professionals abroad.

But Dr Amelia Ancog, further inquired on the structural reform of CAAP, although she commended the structural changes done at CAAP.

General Cusi, accounted that in his experience from the private industry and later to the government, there must have an exchange of information. The work ethics are very different between the private and public sectors, respectively. Managers keep managing many things under pressure.

People, Process, and Facilities

Dr Nestor Pilar, probed on the three aspects of the aviation industry on people, process, and facilities to be affected by the corporization of CAAP. Queries ranged from who have greater control of facilities? Who allocates the facilities? The old facility is used by all international airlines, why is this so? Is it possible to be irreverent of international protocols?

As the heart of the topic, Director General Alfonso Cusi, said that with regards to the use of the airports, ours is very behind. The capacity of Terminal 1 is old enough. Terminal 2’s capacity is around six million but we are handling around eight million. So the terminals are congested. We have larger terminal that is the Domestic Terminal. Terminal 3, following the rules, must be closed. Some says it should be operational following the request of Cebu Pacific, thus, we invited others to use the terminal. The traffic that would be created must also be considered. Terminal 3 that it is partly open with 12 million has better capacity. There is a need to have a master plan for our airports.