MEETING
MANILA, MARCH 22, 2012 (INQUIRER) By: the staff
Philippine Daily Inquirer - Has the government done enough to convince
the Federal Aviation Administration (FAA) to remove local airlines off a
blacklist of companies barred from expanding operations in the United States?
According to our sources, the FAA wrote a letter congratulating the Civil
Aviation Authority of the Philippines (CAAP) led by Director General Ramon
Gutierrez on the progress the government has made in addressing security
loopholes and technical lapses that were the cause of the blacklist. The letter
followed a technical assessment done earlier this year by the FAA—the first
during the Aquino administration.
But, and this is a big one, the letter stopped short of saying that the
government was ready for a more rigorous technical audit that would be the basis
of the possible lifting of the country's "category 2" status.
"The letter had a lot of congratulatory statements," one industry official
said, adding that these words of praise were mere "consuelo de bobo."
"The CAAP may have been able to satisfy 99.5 percent of the FAA's demands,
but if we are still lacking that 0.5 percent, then we will still be on the
blacklist," said the source.
So disappointing were the results of the recent assessment that
Transportation Secretary Manuel "Mar" Roxas II, based on several accounts,
walked out of the meeting with FAA representatives and top CAAP officials.
"He was not trying to show disrespect to the FAA. He was showing his
disappointment in Gutierrez," our source said.—Paolo
Montecillo
Win some, lose some
A big state-controlled corporation may soon give the pink slip to its
publicist, a veteran in the game. This was after finding out that Mr. Publicist
had taken on the job of doing PR for a beleaguered (and very high-profile)
public official who has been at odds with President Aquino from day one.
Thus, this government corporation is on the prowl for a new publicist,
especially because it has a lot of mass-oriented and charitable campaigns. This
state corporation is Mr. Publicist's biggest government account, but his wallet
won't hurt because the trade-off is well worth it. How so? We heard it's almost
like winning the lottery.—Doris C. Dumlao
Speaking of publicists …
Another cash-rich, state-controlled corporation has also attracted the
interest of PR practitioners of late, especially in the wake of a recent crisis
involving its top management (think foreign trips, hotels and expensive bags).
According to our sources, this agency was recently approached by a freelance
publicist offering to help them spiffy up their image and was initially welcomed
with open arms by one of the agency's officials (linked to the previous
administration).
The thing is, the agency already has its own PR group. The publicist has also
been known to do subcontracted work for a known enemy of the P-Noy
administration (clue: same guy referred to in the Biz Buzz item above). And the
worst part: the newcomer recently sent work to his potential employers claiming
credit for PR work done by its existing PR group. Tsk tsk. Talk about seizing
opportunities from crises, huh?—Daxim L. Lucas
SEC job opening
There's a vacancy among the ranks of the top brass of the Securities and
Exchange Commission as the term of Commissioner Raul Palabrica ended last March
11 and SEC people are keenly awaiting—"with bated breath"—the Palace's next
move. Until the Palace names a replacement, Palabrica (a former PLDT official
and Inquirer ombudsman) will carry over the term.
One of the candidates, believed to have a strong Liberal Party backing, is
Hubert Guevara, who is no stranger to the corporate watchdog being a former
director of the SEC enforcement and prosecution department. A source said
Guevara has "been vocal about applying ever since." Guevara is a nephew of an LP
senator's wife.—Doris C. Dumlao
Using the environment
When it comes to stopping big business nowadays, there's nothing like
leveraging off environmental issues—whether real or imagined—to win the public's
support. No, we're not talking about the mining industry (although the
environment has been effectively used here to hobble mining firms). We're
talking about the business of land reclamation.
There is at least one influential group involved in both business and
politics that has made public pronouncements against one reclamation project,
citing the damage it would cause to the environment surrounding their
traditional "baluarte" (to the point of initiating legal action against the
government agencies in charge of the project).
According to our sources, however, some representatives closely allied with
the petitioning party have quietly approached the people in charge of the
project with a clear message: "We want in."
And what of the real environmentalists who think they've found an ally? Looks
like they're being taken for a ride on this one.—Daxim L.
Lucas
'Unifying factor'
With persistent rumors of Finance Secretary Cesar Purisima's imminent
transfer to a juicier Cabinet post, supporters of excise tax reforms are worried
sick they would lose a key ally. On the other hand, some local farmers and
alcohol and tobacco manufacturers seem only too happy to see him go.
In recent weeks, Purisima has been at the center of a brewing storm, with his
dogged pursuit of a single-rate tax for so-called "sin products" (with one
foreign cigarette firm clapping its hands in glee since it stands to benefit
from it).
Of course, people aligned with the secretary's views have also been
disseminating news releases from NGOs and other interest groups lobbying for a
change in the excise tax system. This early, the head of the economic team has
already helped achieve what was once thought impossible: unifying rivals in the
local spirits, fermented liquor, tobacco and even small-to-medium insurance
companies, to rally against the government's move.
Judging from the slew of full-page ads critical of the DoF-sponsored House
Bill 5727, it would seem that Purisima and backers of sin tax reform have
touched a raw nerve among the country's manufacturing sector. Erstwhile bitter
rivals San Miguel Corp. and Asia Brewery and giants Ginebra San Miguel, Tanduay
Distillers, Emperador Distillers, Destileria Limtuaco, including their
employees, have temporarily set aside differences to wage battle against a bill,
which they claim would kill local industries and jobs.
Incidentally, even the usually silent and benign life insurance companies are
now up in arms against Purisima's proposal to raise their capital to a minimum
of P1 billion (local insurers claim hundreds of insurance companies will be
driven out of business, leaving only a handful of giant multinationals to lord
it over the market).
So his critics are asking: Has it become the policy of this administration to
favor foreigners over Filipinos in some industries? The gloves are off, so to
speak.—Daxim L. Lucas
PAL rebranding
Flag carrier Philippine Airlines celebrated its 71st Anniversary at the One
Esplanade Mall of Asia complex last week with a slew of interesting news,
starting off with the launch of its revitalized brand image with the catch
phrase "Love, Your PAL"—a brainchild of PAL executive vice president and Lucio
Tan daughter Vivienne Tan.
Adding "oomph" to the airline's image rebranding, PAL revived its "Charisma
Girl" program from the mid-1980s – an advertising blitz using some of the
smartest, prettiest and most personable flight attendants as company image
models. The Charisma Girls will be featured in major PAL ads and promo materials
from now until the next search in 2014. This year's winners are flight
attendants Kate Williams, Magnolia Gersbach, Priscilla Honorio, Kimberly
Jamerlan, Wrizza Parulan and Margarette Gines.
PAL program partners Airbus and Mastercard were generous sponsors of the
event, which organizers hoped would show that PAL remains a force to reckon with
in the Philippine commercial aviation industry, despite rival Cebu Pacific
nipping at its heels.
During the event, PAL top honchos led by president Jimmy Bautista kept mum
about the San Miguel-PAL acquisition talks, smiling sheepishly when asked about
the latest buzz on the issue. Contrary to rumors, SMC bigwig Ramon Ang was not
among the guests in the full-packed events hall, and neither was his rival PLDT
big boss Manny Pangilinan… even if both were invited.
And if our readers are wondering why the long rumored SMC-PAL deal hasn't
been announced yet, our sources say it's because Lucio Tan has been flooded with
counter-offers from a competing bidder in recent weeks, despite having an
exclusivity arrangement with SMC. The counter-offers come in various
permutations and combinations, including one that would allow the taipan to
retain a small stake in the airline while accommodating the entry of another
taipan (who has long been eyeing the business).—Daxim L.
Lucas
Airline face-off
The country's top carriers are set to face off for the right to fly to the
United Arab Emirates (UAE), a potentially lucrative market where hundreds of
thousands of overseas Filipino workers (OFW) reside.
Cebu Air Inc., operator of budget carrier Cebu Pacific, earlier applied for
the rights to mount seven flights a week to the UAE. Cebu Pacific is currently
getting as many entitlements as it can to as many countries as it can ahead of
the launch of its long-haul operations by the third quarter of 2013. The company
has announced that it plans to start operating to countries outside the
four-hour range of its current fleet of Airbus A320 jets. Using Airbus A330
planes, Cebu Pacific said it may start flights to some points in the United
States (Hawaii or Guam), Australia, some points in Europe and to Middle Eastern
countries like the UAE.
All of the country's entitlements to the Middle Eastern country, however, are
currently held by rival Philippine Airlines (PAL). PAL is also renting out these
entitlements to Middle Eastern carriers that fly to Manila under "code sharing"
arrangements—which means the flag carrier makes money without lifting a finger.
Neither party is expected to back down. The only thing that can easily break
the impasse, of course, is for the government—particularly the Civil Aeronautics
Board—to do its job and negotiate for more rights to fly to the UAE to
accommodate the demand of both airlines.—Paolo Montecillo
FROM PHILIPPINE AIR INDUSTRY
NEWS
Roxas Fumes as FAA Team Gives CAAP Mixed Review
Feb 1 Posted by Ben Kritz
In comments offered before their departure from the Philippines last
Friday, the Federal Aviation Administration's Technical Review team tasked with
assessing the country's readiness for an International Aviation Safety
Assessment (IASA) audit complimented the CAAP on its progress, saying the agency
had accomplished "more in six months than in the previous five years." FAA team
leader Jacques Astre stopped short of declaring the Philippines eligible for
Category 1 status, however, pointing out that issues in Primary Aviation
Legislation, Licensing & Certification Obligations and Resolution on Safety
Issues still need to be resolved.
Of particular concern to the FAA inspectors were the CAAP's certification
processes for aircraft and personnel, with the pointed suggestion being made
that the CAAP should focus its efforts accordingly. The mention of Primary
Aviation Legislation is also a bit surprising, as that was one area which the
Philippines was previously judged to have adequately covered; however, no
details about that particular issue were offered by Astre or his team.
Although CAAP director-general Ramon Gutierrez was quoted by the Business
Mirror as saying that the actual IASA audit was scheduled for sometime in
February, the FAA team did not give any information about when it would take
place, the implication being that another technical review may be necessary
before the formal audit could be conducted.
Upon learning that the restoration of the country's Category 1 status would
not be taking place in the foreseeable future, DOTC Secretary Mar Roxas
reportedly became infuriated with the CAAP officials in attendance at the
briefing, berating them for failing to adequately prepare for the review before
walking out of the meeting. In a later interview with the Inquirer, Roxas hinted
that the Aquino Administration might consider giving up on the issue, explaining
that "It's our decision to invite them [the FAA] back," based on the findings of
the technical review team's report.
According to a source at the FAA, that report should be available to the
Philippine government "within the next couple of weeks."
Chief News Editor: Sol Jose Vanzi
© Copyright, 2012 by PHILIPPINE HEADLINE NEWS ONLINE
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rights reserved
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