Andrea E. San Juan
November 21, 2024
The Arangkada Philippines Project, the advocacy arm of the Joint Foreign Chambers (JFC), has unveiled its recommendations for government to address the “structural barriers” that limit Philippine air transport efficiency and competitiveness.
Among the recommendations cited by Arangkada is the need to create a Philippine Airports Authority to take over airport operations and development, allowing the Civil Aviation Authority of the Philippines (CAAP) to focus solely on regulatory oversight, enhancing both safety and efficiency.
Arangkada’s policy brief explained that the proposed reform aims to transfer the functions of CAAP to a new entity (organizational de-linking) outside of CAAP.
“This entity will be responsible for the development and commercial functions of all CAAP airports,” the policy document noted.
Arangkada pointed out that “evidence reveals that organizational de-linking provides greater flexibility to the regulator to focus on its core function.”
Pending bills in the 19th Congress on de-linking the CAAP functions include House Bill 02234 and Senate Bill 1073.
In its policy brief, the Arangkada Project explained that Section 78 of the RA 9497 mandates CAAP to be responsible for the planning, development, construction, operations, maintenance, or expansion of airports.
“As a technical regulator, CAAP also regulates facilities that it develops and operates. This creates inefficiencies and conflicts of interest. Stakeholders attribute issues such as the lack of convenience and comfort at airports, breakdown of airport equipment and facilities, lack of water and amenities in restrooms, and other challenges to the conflicting functions within CAAP,” the policy brief noted.
“Such a division is crucial for streamlining operations, enhancing safety, and ensuring that Philippine airports meet global standards,” Arangkada said in a statement on Wednesday.
The JFC’s advocacy arm also proposed an “independent” Philippine Transportation Safety Board (PTSB) to conduct “objective investigations into aviation incidents for better accountability and transparency.”
Arangkada also stressed the need to “modernize” the Civil Aeronautics Act of 1952 to position the Civil Aeronautics Board as an “independent economic regulator, prioritizing consumer protection in an increasingly globalized air travel market.”
The brief pointed out that as the ownership of airports changes from public to private hands, economic regulation may become more necessary to ensure airport service pricing promotes welfare of airport users.
Arangkada Philippines Project issued the policy brief with the title “Philippine Air Transport Infrastructure: A Policy Brief Update.”
The policy brief highlights airport infrastructure updates since Arangkada’s last airport brief from 2016, including post-pandemic recovery, sustainability, and technological advancements, and recommends legislative reforms to unlock the full potential of Philippine air transport and establish the nation as a “premier” aviation hub in Southeast Asia.
“The catalytic effects of air transportation to the economy through critical sectors like tourism and trade depend on the quality of our transport infrastructure,” said the brief.
Source: https://businessmirror.com.ph/2024/11/21/arangkada-phl-bares-new-proposals-for-air-transport/