Duterte Grants 25-Year Franchise Extension to Air Philippines

April 26, 2022

Apr. 27—PRESIDENT Rodrigo Duterte signed a law renewing the franchise of Air Philippines Corp. for another 25 years.

The President signed Republic Act 11682 on April 11 but a copy of the law was released to reporters only on Tuesday, April 26.

The franchise law allows Air Philippines "to establish, operate and maintain transport services for the carriage of passengers, mail, goods, and property by air, both domestic and international" in the country for another 25 years.

Air transport services include the maintenance and operation of hangers and aircraft service stations and facilities and other services of similar nature which may be necessary, convenient, or useful as an auxiliary to aircraft transportation.

Under the law, Air Philippines will have the right at its terminal and landing fields, as well as in its aircraft, to construct, operate, and maintain stations or transmitting sets for wireless telegraphy and direction findings, and other radio aids to air navigation, using wavelengths in accordance with the rules and regulations made from time to time by the proper agencies of the government.

The wireless communication facilities will be used solely for receiving and transmitting weather forecasts and other matters in connection with its services.

"This franchise shall be extended and in effect for a period of 25 years from the effectivity of this Act, unless sooner revoked or cancelled," the law read.

The franchise shall be deemed revoked in the event Air Philippines fails to operate continuously for two years.

Air Philippines Corp. operates as PAL Express, the low-cost carrier of Philippine Airlines (PAL).

PAL's domestic network operations cover 30 cities and towns across the country, mostly under codeshare and operated by PAL Express.

PAL Holdings earlier said the flag carrier, together with PAL Express, is considered the country's largest international airline

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