PUV fares go up

8 July 2008 – A new round of public transportation fare hikes was approved today by the Land Transportation Franchising and Regulatory Board and will take effect on 14 July after new guidelines have been completed and issued to jeepney and bus operators nationwide.

LTFRB chairman Thompson Lantion said that jeepney fares in Metro Manila will increase from P8.00 to P8.50 for the first four kilometers and an additional 25 centavos for every succeeding kilometer.

Ordinary bus fares will be set at P10 for the first five kilometers, up by a peso from the current P9 fare. Minimum fares for air-conditioned buses will also go up from P11.50 to P13 for the first five kilometers, and from P2.10 to P2.35 for every succeeding kilometer. Meanwhile, taxi drivers may start collecting an “add on” rate of P10 on top of the total meter charge, seen as a compulsory tip, so that taxi operators will not have to recalibrate their meters.

The fare hike was recommended by the LTFRB to the National Economic Development Authority Board following the series of oil price hikes in the country. Local oil prices have already increased 18 times this year, pushing up the cost of diesel, the fuel used by most public transport vehicles, by 41.6% from P38.95 per liter at the start of the year to P54.97 per liter today.

Earth-friendly e-jeepneys in Makati

1 July 2008 – After two test runs in July 2007, electric jeepneys will be operating in Makati City starting today. The e-jeepney is the first non-fuel-driven mode of public transportation in Southeast Asia. The environment-friendly vehicle is powered by 12 batteries that require eight hours of charging. It can carry 15 passengers aside from the driver and run for at least 100 kilometers daily at 40 kilometers per hour.

The groups behind the e-jeepneys, Green Renewable Independent Power Producer (GRIPP) and Greenpeace, led the vehicles’ launch in Makati. The city’s mayor, Jejomar Binay, was present at the event and drove one of the e-jeeps.

Initially, six e-jeepneys will ply the Salcedo Village and Legaspi Village route from 7:00 a.m. to 7:30 p.m. On the first week, fares will be waived, but after the promotional week, a minimum fare of P8.00 will be charged. E-jeepneys will also soon ply the cities of Bacolod and Puerto Princesa, and according to GRIPP, 15 more cities in the country are interested in bringing the vehicles to their area.

PAL affected by FAA downgrade of RP aviation safety

16 January 2008 – The downgrading of Philippine aviation safety by the United States’ Federal Aviation Administration will adversely affect the expansion plans of Philippine Airlines in 2008.

In December 2007, the Philippines’ failure to modernize its navigational aids and communications systems, update aviation regulations, improve training programs of safety inspectors, and increase the licensing standard for airframe and engine inspectors led the Federal Aviation Administration to downgrade the Philippine’s aviation safety rating from Category 1 to Category 2. The agency found that the country has failed to comply with aviation standards set by the International Civil Aviation Organization.

Because of the downgrade, Philippine Airlines will not be allowed to fly to new U.S. cities or change the type of aircraft used in its existing U.S. destinations.

Under heavy flak, the Air Transportation Office (ATO) explains that its limited budget makes its difficult to keep pace with international standards. Its yearly budget of P1.3 billion is spent mostly on administration and operating expenses. An outlay of P3 billion is the estimated requirement for local aviation modernization.

The passing of the Civil Aviation Authority of the Philippines bill is seen to be a critical factor in resolving the sorry situation. The bill grants fiscal autonomy to the ATO and the agency will be able to use most of its budget for modernization. The bill has been approved in Congress and is just waiting for President Gloria Macapagal-Arroyo’s signature.

Transportation strike and fishing holiday loom due to oil price hike

10 December 2007 - Several militant groups are planning to hold protest actions in response to the rising prices of petroleum products. Last weekend, oil companies again raised fuel prices, bringing the price of diesel to P38.45 per liter. This was the 15 th price adjustment this year, for a total increase so far of P7.50.

The Pinagkaisang Samahan ng mga Tsuper at Operator Nationwide (PISTON) is planning to hold a transport strike on 13 December, while fishermen belonging to the Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) are threatening to go on a national fishing holiday.

PISTON is protesting against the continuous increase in fuel prices and is advocating the suspension of the oil deregulation law. It is also seeking the cancellation of the 12% value-added tax being levied on oil products, which they say will result in a reduction in fuel prices by P4 per liter.

Pamalakaya, in turn, is calling on owners of 177,627 motorized bancas used in fishing not to operate on the day of the nationwide strike dubbed as the National Day of Protest Against Oil Price Increases. Pamalakaya is also calling for the repeal of the oil deregulation law and is asking the government to impose price controls to cushion the impact of rising world oil prices.

Bill seeks to protect cab passengers

A bill seeking to protect the taxi-riding public from holdups, theft, and overcharging has been filed in the House of Representatives by Caloocan Rep. Mary Cajayon. House Bill 2915 proposes to set up mandatory taxi stands in public and commercial places where security guards will be made to issue stubs to passengers containing information about the taxi they are boarding.

Under the proposed measure, establishments that will fail to implement the system will be fined, with amounts ranging from P50,000 to P100,000 for the first offense, P100,000 to P150,000 for the second offense, and P200,000 to P300,000 and cancellation of permit for the third offense.

Domestic air travel lifted by
cheap fares

15 November 2007 – According to data released by the Civil Aeronautics Board, domestic air travel soared in January to September, boosted by airlines' aggressive marketing campaigns. The total number of domestic air passengers rose to 7.69 million in the first three quarters of the year, 23% higher than the 6.23 million passengers in the same period last year.

Source: Civil Aeronautics Board


Of the five major carriers, Cebu Pacific led the industry in terms of load factor with 83%, followed by PAL with 79%, Air Philippines with 72%, SEAIR with 62%, and Asian Spirit with 57%.

The cargo business of airlines also grew 7% in the first nine months, with 102.29 million kilograms of goods transported this year compared to 8.52 million kilograms last year.

The CAB expects the domestic air travel industry to grow by 7% this year.

Air travel between ASEAN capitals fully liberalized by December 2008

2 November 2007 – The ten members of the Association of Southeast Asian Nations are set to sign an agreement that will fully liberalize air travel between their capitals by December 2008.

At the 13 th ASEAN Transport Ministers Meeting held in Singapore on 1-2 November, the member-countries' transport ministers agreed to sign “at an earliest possible opportunity” next year the ASEAN Multilateral Agreement on the Full Liberalization of Air Freight Services Agreement, as well as the ASEAN Multilateral Agreement on Air Services.

In a joint statement, the transport ministers affirmed that they will intensify ASEAN transport facilitation programs, allow more competition in transport and logistics services, build up key multimodal trade transport infrastructures, and assist in uplifting human competencies of ASEAN logistics services providers.

These programs support the ASEAN Roadmap for Integration of Air Travel Sector, which aims to extend the full liberalization of air travel to all other ASEAN cities by 2010, thus fulfilling the vision of “open skies” within the ASEAN.

The implementation of an open skies policy in the region would be a major step towards the establishment of an ASEAN Economic Community by 2015. The members of the ASEAN include Brunei, Camboadia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, Vietnam, and the Philippines.

Six infrastructure projects for
private-sector financing

12 September 2007 – The government has pinpointed six major infrastructure projects for private-sector financing. National Economic Development Authority officer-in-charge Augusto Santos told participants of the Philippine Economic Briefing and Infrastructure Forum that, aside from bringing a reasonable rate of return for investors, the six projects, worth P66 billion, would improve the country’s global competitiveness.

The six projects identified were the following:

- the operation and maintenance of the 94-kilometer Subic-Clark Toll   Expressway, P32.81 billion;

- the first phase of the 84.5 kilometer Tarlac-La Union Toll Expressway,
  P16.88 billion;

- the extension of the LRT-1 from Monumento to North Avenue,
   P6.3 billion;

- the water supply project of the Metropolitan Waterworks and Sewerage   System for the West Zone concession, P5.2 billion;

- the Panguil Bay Bridge project, P2.8 billion; and

- the Wawa River project, P1.95 billion.

The Arroyo administration has said that P2.02 trillion in infrastructure investment has been lined up for 2006–2010. The government will shoulder P881.45 billion of the total budget, while the private sector will finance P663.2 billion. The rest will be covered by government-owned and -controlled corporations, government financial institutions, and local government units.

BIR suspends 2,600%
transport tax hike

7 August 2007 – The Bureau of Internal Revenue has temporarily suspended the implementation of BIR Revenue Regulation 9-2007 imposing a 2,600% hike in the common carriers tax levied on public transport operators after the affected groups protested against the new regulation.

Under Section 117 of the Tax Code of 1997, operators of public transport vehicles, including rental cars, have been paying a common carriers tax equivalent to 3% of their minimum gross quarterly receipts. This has been the running rate since 1978. The government now feels that the rate is too low and is based on figures that no longer mirror the real income of transport operators. Thus, the government issued the order that effectively increases the tax by 2,600%.

In a meeting between the BIR and representatives of affected groups, the latter appealed that the increase be limited to 300%–500%. The BIR, in turn, came up with a counterproposal entailing a “gradual enforcement” of the new regulation instead of implementing the full 2,600% tax hike in one go. At the meeting’s conclusion, the BIR agreed to suspend indefinitely the implementation of the order—which is supposed to take effect on August 18—while it reviews the regulation in order to come up with a more acceptable rate.

RR 9-2007 sought to enforce the tax hike by increasing the minimum gross quarterly receipts upon which the transport tax computations are based. For Metro Manila taxis and public utility buses with a capacity not exceeding 30 passengers, the minimum gross quarterly receipts were to be raised to P98,600 from P3,600. The proposed increases for the other classes of public vehicles are as follows: hired cars with chauffeurs, P82,100 from P3,600; Metro Manila jeepneys, P65,700 from P2,400; hired cars without chauffeurs, P49,300 from P1,800; and provincial jeepneys, P32,900 from P1,200.

P17.3B allocated for infrastructure projects in 2008

25 July 2007 – Of the proposed P1.2-trillion budget for 2008, P17.3 billion will be allocated to the Department of Public Works and Highways for infrastructure projects in the pipeline. This allocation is 18.35% higher than DPWH’s 2007 allotment.

To increase public consumption through infrastructure spending, the government is also allotting P5 billion to the National Housing Authority, which is 1,845% higher than the P257 million budget of the NHA this year.

Order cutting port fees expires; regular fee rates back

25 July 2007 – A Malacañang order lowering port fees from 20 April to 20 July has expired, which means regular port fee rates were back in place beginning 23 July. The Palace released the order cutting wharfage fees to P20 per 20-foot container van and P40 per 40-foot container from P259.70 and P391.05, respectively, to help Philippine exporters cope with the stronger peso and high shipping costs. According to Philippine Ports Authority general manager Oscar Sevilla, the agency is waiting for Malacañang’s decision regarding the extension of the reduced fees.

The PPA reports that due to the cuts, the agency lost P3 million in revenues per month. Consequently, it is proposing to remit to the national government only 10% of its income for the financing of the Arroyo administration’s infrastructure plans for ports and highways. If approved, the PPA will remit every year P260 million only, down from P1.3 billion in 2006.

Gov't terminates Takenaka as
NAIA 3 contractor

12 June 2007 – In a recent interview with BusinessWorld, President Gloria Macapagal-Arroyo announced that the government has terminated the contract appointing Takenaka Corporation as the contractor of the idled Ninoy Aquino International Airport Terminal 3 project.

Trade Secretary Peter Favila delivered the message to the Japanese company during President Arroyo’s working visit to Japan in May. “We have been held hostage for the longest time,” Favila said. He added, however, that Takenaka is still asking the government to reconsider its decision.

The NAIA 3 terminal was supposed to open in 2002, but the project hit a major stumbling block when issues surrounding the legitimacy of the deal between the government and the Philippine International Air Terminals Inc., the project developer, led the Supreme Court to nullify the contract in 2003.

The government’s negotiations with Takenaka to finish its job of constructing the facility have dragged on, and up until the government’s decision to terminate the contract, there was still no resolution in sight. The government rejected Takenaka’s offer to complete the unfinished the project for US$14 million.

Favila revealed that the transportation department and the Manila International Airport Authority are now looking for other contractors to complete the derailed project. “I had already recommended to the President that perhaps now we can use our own resources; [that] the Philippine government itself finish it and let the legal issues take its course,” he added.

Reduction of wharfage fees to cushion effects of peso appreciation

18 April 2007 – The Philippine Ports Authority has released a memorandum order slashing wharfage fees for three months, starting 20 April, in support of exporters affected by the continued strengthening of the peso.

PPA Memorandum Order No. 11 calls for a P20.00 reduction in the P259.70 wharfage fee for 20-foot containers, and a P40.00 slash in the P391.05 fee levied on 40-footers.

The Philippine peso reached a fresh six-year high this month when it hit P47:US$1. Due to this, exporters sought the abolition of port fees. However, this is unlikely to get government support given that wharfage fees are a huge source of revenue for the government. Last year, the PPA earned P6.0 billion, P1.2 billion of which came from wharfage fees.

The adjusted rates will be in effect until 20 July.

Tiger Airways reduces Clark flights due to regulatory uncertainties

22 March 2007 – Singapore-based budget airline Tiger Airways has announced that it will cut its weekly flights between Singapore and the Diosdado Macapagal International Airport at the Clark Special Economic Zone in Pampanga from 14 flights to just 9 starting 25 March.

According to the airline’s CEO, Tony Davis, the reduction in flights is due to the continued uncertainty in Philippine air policy and regulations, particularly for the Clark airport. He urged the Philippine government to quickly act on the open skies issue so that Tiger Airways can work with Clark and DMIA authorities in improving air travel services into and out of the economic zone.

Government infrastructure spending in 2006 only 1.6% of GDP

26 February 2007 – Government spending on infrastructure and other capital outlays in 2006 was P22 billion below the proposed P119.6 billion budget.

Budget Secretary Rolando Andaya Jr. said that the government spent only P97.6 billion last year because of the non-passage of the 2006 General Appropriations Act and the delay in the passage of the P46.9 billion supplemental budget. The P97.6 billion spent is equivalent to just 1.6% of the country’s GDP last year.

This year, however, the government is keen on maximizing its spending for infrastructure, especially in support of projects under its super regions program. Earlier, the government announced its plans to spend P528 billion more for the development of roads, bridges, and ports over the medium term to pump-prime the economy. Poor infrastructure has constantly been cited as one of the main factors discouraging the entry of foreign investments.

Gov’t to commence infra projects before public-works ban

31 January 31 2007 – The Department of Budget and Management is planning to begin construction of several priority infrastructure projects before a public-works ban takes effect 45 days before the 15 May elections. Budget Secretary Rolando Andaya Jr. said that the DBM is preparing a list of these projects.

The Omnibus Election Code prohibits the “release, disbursement, and expenditure of public funds” for certain types of public-works activity prior to electoral exercises. However, the ban does not cover emergency public works in calamity areas, foreign-funded projects, and maintenance work for existing projects.

Sec. Andaya said that the government intends to increase infrastructure spending this year by P75 billion, after last year’s poor spending of only P38.7 billion.

Delays seen in NAIA 3 and Tacloban airport projects

5 January 2007 – More delays are expected in the completion of two airport projects, the Ninoy Aquino International Airport Terminal 3 and the Tacloban airport rehabilitation project.

The NAIA 3 project is currently stalled after the government rejected last week the offer of Takenaka Corporation, the Japanese contractor of the project, stating that the latter’s offer is overpriced. In addition to this, the final selection of an appraisal firm tasked to conduct the valuation of the unfinished airport has been delayed.

Solicitor General Antonio Eduardo Nachura said these developments might push back the opening of the NAIA 3 in June 2007, but a soft opening is still being considered for March.

The Tacloban airport rehabilitation project, on the other hand, will be delayed for two years due to the lack of local counterpart funding.

NAIA 3 encounters more problems as opening nears

24 October 2006 – In a joint meeting of the National Security Council and National Economic and Development Authority board in Malacañang, Alfonso Cusi of the Manila International Airport Authority reported that the government will spend $6 million to $8 million for the completion of the Ninoy Aquino International Airport Terminal 3.

The funds, partly borrowed from the Development Bank of the Philippines, will be utilized for the development of roads, connecting lanes, security systems, and communication lines of the said terminal. Technical and funding preparations are all in motion as the government expects NAIA 3 to be operational by March 2007, barring any “major deficiencies.”

The airport project faces more hurdles, however, as the Department of Transportation and Communication recently uncovered liabilities of Takenaka Corporation, the Japanese contractor commissioned to handle the project, which could lead to a decision to either replace or sue the company.

P10.8B worth of airport
projects approved

9 October 2006 - Three air transport projects got the Senate finance committee’s approval for funding totaling P10.8 billion. The committee approved a P5.5-billion budget for two Western Visayas projects, namely, the New Iloilo International Airport and the Negros Occidental Airport. The other P5.385 billion was allotted for the construction of the Laguindingan Airport in Northern Mindanao.

The approval comes a day after the Negros Occidental Airport bombing, which destroyed some P30 million worth of equipment being used for its construction. Finance committee chairman Sen. Franklin Drilon said such incidents will not prevent them from pursuing the development of airports for the economic progress of the regions.

Government to secure and float bonds for NAIA 3

19 September 2006 - The government plans to securitize or float bonds to raise enough funds to pay the Philippine International Air Transportation Company and eventually gain full control of the Ninoy Aquino International Airport Terminal 3. The PIATCO consortium built the NAIA-3.

Transportation Secretary Leandro Mendoza said the plan is to sell about three years’ advance income of NAIA-3 to the Land Bank of the Philippines and use the money raised to pay PIATCO and Fraport AG, the German company that has a substantial stake in the PIATCO consortium. PIATCO is asking for about US$500 million, while Fraport is seeking compensation to the tune of US$400 million.

Government pays P3B for
NAIA-3 takeover

12 September 2006 – The government officially took over the mothballed Ninoy Aquino International Airport Terminal 3 after paying the P3 billion down payment to the Philippine International Air Terminals Co. The initial payment was received by PIATCO lawyer Eduardo de los Angeles yesterday.

The payment enables the government to begin repair work on the facility, which it hopes to open in six to eight months. However, the terminal’s full operation can only start once the government’s obligation to PIATCO has been fully settled. A court-appointed commission is still determining the final amount of compensation. PIATCO has been asking for US$525 million, but the government is offering US$325 million only.

According to Finance Secretary Margarito Teves and Budget Secretary Rolando Andaya Jr., the Manila International Airport Authority, not the national government, is paying for the terminal from its corporate budget. The move is expected to improve investor confidence and spur investments in the country.

International court orders government to move out of NAIA 3

28 August 2006 – The International Criminal Court Arbitration Tribunal in Singapore has ordered the government to “cease occupation and give up possession” of the Ninoy Aquino International Airport Terminal 3. The international court has already formally notified Solicitor-General Eduardo Nachura of its ruling. With that, the Philippine International Air Terminals Co. and its authorized representatives are expected to take back the mothballed facility on 31August.

The court’s ruling arose from the government’s deliberate delay of its P3 billion down payment to Piatco despite the Supreme Court’s final and executory ruling ordering the government to pay Piatco for the terminal. Last week, Piatco corporate treasurer Jefferson Cheng left the Land Bank main office in Manila empty-handed upon receiving news of a temporary restraining order issued by the Court of Appeals stopping the government from paying the down payment.

The CA ruling has elicited violent reactions from House Majority Leader Prospero Nograles, who contended that that the appellate court is only a judicial subaltern and not a co-equal body of the SC. In response, Chief Justice Artemio Panganiban affirmed that the CA has no authority to reverse a SC ruling.

MRT-3 in dire need of new trains

21 July 2006 – According to Metro Rail Transit Authority general manager Roberto Lastimoso, the MRT line 3 might collapse by 2010 if the rail system continues to operate beyond its capacity. He revealed that the MRT-3 system and facilities are fast depreciating as a result of carrying daily at least 50,000 passengers more than the current 350,000-passenger capacity of the system. It is projected that by 2010, the number of passengers will reach 700,000 daily.

Earlier, Austria agreed to donate 16 secondhand light-rail trains to help the government address the problem. Unfortunately, the design of the trains was incompatible with the MRT-3 system since these had outward-folding doors (which would hit the stations’ platforms), a level of flooring lower than the MRT-3 platform, and heaters instead of air-conditioners.

To make the most out of the situation, the Department of Transportation and Communications and the Federal Ministry of Transportation Innovation and Technology of Austria decided to sign a memorandum of agreement on “technology transfer.” Austrian engineers and technicians will be coming over to help form a technical working group that will determine alternative ways that Austria can improve the country’s railway system.

NAIA 3 opening postponed indefinitely

28 March 2006 – The collapse of a portion of the ceiling of the Ninoy Aquino International Airport Terminal 3’s arrival area has once more put on hold the long-awaited opening of the facility. The postponement will last until the cause of the collapse, involving an 80-square-meter area of the ceiling, has been determined and repairs are completed. Consequently, test flights of Cebu Pacific Air, Air Philippines, and Jet Star of Singapore scheduled for 31 March have been called off.

An investigation is underway to determine if the accident was due to substandard materials. Contractor Takenaka Corp. is being blamed for “poor workmanship.” However, Transportation Assistant Secretary Roberto Castañares said that if the ceiling’s collapse was due to faulty engineering design, the original NAIA 3 developer, Philippine International Air Terminals Co., would be liable for the repairs and/or must accept lower compensation claims. According to Manila International Airport Authority general manager Alfonso Cusi, an earlier preliminary report submitted by TCGI Engineers did not indicate any serious concerns on the structural soundness of the facility.

PAL holds expansion plans due to exodus of workers

14 March 2006 – Expansion plans of Philippine Airlines have been put on hold due to the exodus of its mission-critical workers, including captains and experienced first officers. Fifteen pilots have already transferred to offshore airlines this year.

Meanwhile, the Airline Pilots Association of the Philippines volunteered to urge local pilots not to transfer to foreign airlines, provided domestic firms pay pilots $4,000–$6,000 a month. ALPAP revealed that local pilots only receive half of these amounts. ALPAP president Capt. Elmer Peña argued that barring pilots from leaving the country violates the right to labor, travel, and against involuntary solitude. Peña cited the Malaysian courts, which ruled that airline firms could not prevent pilots from leaving “if they cannot offer them better pay.”

Jet Airways India, which reportedly needs 700 new pilots for a two-year period, is offering $8,700, $10,000 and $11,000 for B737 pilots, A330/A340 pilots, and B777 captains, respectively. Aircraft dispatchers and maintenance engineers are being offered $2,500 and $4,000, respectively, plus housing. China also needs some 10,000 new pilots over the next three to five years.

NAIA 3 soft opening set this March

2 March 2006 – The Manila International Airport Authority announced the trial opening of the controversial Ninoy Aquino International Airport Terminal 3 on 31 March .

Cebu Pacific Air has expressed its willingness to be the first airline to use the facility for its Hong Kong and South Korea flights. Other airlines remain hesitant to transfer to the new terminal due to ownership issues.

MIAA general manager Alfonso Cusi expressed concern over the soft launch, saying it might jeopardize the resolution of legal issues before the arbitration courts. The government is eyeing to start commercial operations by June this year.

LRT commuters reach 147M in 2005

20 January 2006 – A record 147 million passengers rode Lines 1 and 2 of the Light Rail Transit Authority in 2005, according to LRTA administrator Mel Robles. The record indicates an increase of 29 million passengers from the 118 million passengers a year ago.

A large portion of the additional commuters were from Line 2 or the Purple Line, which plies the Santolan-Recto route. Forty-two million commuters took Line 2 in 2005, twice as much as the line’s passenger volume in 2004. Meanwhile, Line 1 or the Yellow Line, which travels the Monumento-Baclaran route, transported about 105 million passengers, an 8% increase from a year ago.

Metro Manila commuters have discovered that for only P10.00 to P15.00 depending on the destination, the light-rail trains are the fastest, most efficient, and pollution-free way of getting around the city.

LTFRB approves P2 fare hike

21 June 2005 – Due to the latest round of pump-price increases and the anticipated implementation of the expanded value-added tax law, the Land Transportation Franchising and Regulatory Board (LTFRB) announced yesterday a P2.00 fare hike for the first four kilometers for jeepneys and buses operating in the National Capital Region. The hike takes effect today, provided that public transports post the new fare matrices. A jeepney ride will now cost a minimum of P7.50 from the previous minimum of P5.50, while the minimum bus fare will now go up to P8.00 from P6.00. Another P0.25 will be added for every succeeding kilometer.

A 20% discount will still be given to students on school days and to senior citizens all year round. Prior to this P2.00 hike, the last increase was in May 2004, when jeepney and bus fares were raised by P1.50 and P2.00, respectively, for the first four kilometers and P0.37 and P0.38 for each succeeding kilometer.