ACAP: Aviation sector needs P8.6-B monthly subsidy to endure COVID-19
MANILA, Philippine — The aviation sector would need a total of P8.6 billion in monthly subsidy from the government to sustain the industry in the wake of the coronavirus disease (COVID19) pandemic.
Air Carriers Association of the Philippines (ACAP) vice chairman Roberto Lim said this during Monday’s Senate public services committee hearing on the partial resumption of public transportation.
Lim presented to the panel ACAP’s proposal for a monthly subsidy to Congress which would be “needed to maintain the employment hold of the aviation sector.”
According to Lim, the sector would need a wage subsidy of P1.3 billion per month.
“In terms of the other support, we pay about 500 million pesos to the civil aviation authorities monthly. This would consist of navigation charges, landing take-off (fees),” he said.
A P6.8 billion working capital per month for the carriers would also be needed, according to Lim.
“The total of that would be P8.6 billion per month,” he added.
Earlier in the hearing, Lim said the Philippine airline industry could lose about $4.9 billion, or approximately P250 billion, until the end of the year due to the ongoing pandemic.
He added that 25,000 to 500,000 jobs in the aviation sector are also at stake.
Last week, the country’s COVID-19 task force suspended all incoming international flights in the country’s main gateway, Ninoy Aquino International Airport (NAIA) in Manila, and other international airports in the country.
Air travel, among other means of transportation, has also been previously suspended since last March 17 when the government imposed an enhanced community quarantine (ECQ) over the entire Luzon and other areas.
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