A HOUSE committee has advised the Department of Transportation and Communications (DoTC) and the Civil Aviation Authority of the Philippines (CAAP) to review the policy limiting the participation of airline-related entities in auctions for airport projects.
“The committee finds the need for DoTC and CAAP to revisit the provisions of the policy… imposing limitation on participation of airline-related entities in the bidding of regional airport projects and other future airport projects,” said Catanduanes Rep. Cesar V. Sarmiento, chairman of the House committee on transportation, in Committee Report 905 submitted early this month.
In August, the committee conducted an investigation into the alleged discrimination of airline-related entities in the bidding of airport projects.
In its report, the panel said the clear motive of the imposition of the 33% ceiling on the participation of airlines and airline-related entities in airport operations is to “prevent discriminatory practices against other airlines by the one which will be awarded with the concession agreement.”
“However, the DoTC and CAAP failed to show any basis for this fear during the deliberation,” the report said, adding that the situation the agencies seek to avoid is “precisely what the airlines and airline-related entities have been experiencing by the implementation of the questioned bidding rules.”
The report further noted that DoTC and CAAP’s “unsupported apprehensions are speculative and hypothetical whereas the discriminatory restrictions imposed on participation of airlines and related entities in the bidding of airport projects [are] crystal clear.”