Probe urged on grant of cargo rights to Japanese airlines

Aviation industry groups revealed yesterday that Malacañang may have illegally granted official cargo carrier status to a Japanese-owned cargo airline and strongly urged Congress to investigate the matter.

The Save Our Skies (SOS) movement said President Arroyo has approved the designation of CLA Air Transport, Inc. as official Philippine carrier to operate international scheduled cargo services between the Philippines and Japan even though CLA’s board of directors is effectively controlled by the Japanese, in violation of the Constitution.

"We are calling on Congress to investigate the matter as we see an anomaly in the designation of CLA as Philippine cargo carrier to Japan," Robert Lim Joseph, SOS president, said.

SOS, a nationwide alliance of cargo forwarders and tour and travel operators, stressed that the approval of the President of CLA’s designation was based on a June 6, 2002 resolution by the Civil Aeronautics Board (CAB) that was not ratified by its members.

"The non-ratification was a violation of the same CAB resolutoin itself which states that the granting of a temporary operating certificate to CLA and its official designation to serve the RP-Japan market was subject to ratification in the immediately succeeding meeting of the CAB Board," Joseph said.

He said the CAB resolution was only passed around for signature and no CAB board meeting was actually held. He added that only three members of the board signed the resolution.

He said President Arroyo must have been misled into approving CLA’s designation considering that it was forwarded to her without the board ratification.

"The people who misled the President must be sued for selling the national interests to foreigners and for causing substantial losses to Philippine carriers," Joseph said.

Industry sources said CLA has been pressuring the Department of Foreign Affairs (DFA) to transmit to Japan civil aeronautics authorities Malacañang’s approval. CLA also asked to be represented in the forthcoming RP-Japan air talks.

Joseph said even the CAB resolution dated June 6, 2002 granting a temporary operating certificate (TOC) to CLA was shrouded with mystery.

He said that while local carriers were opposing CLA’s application for a certificate of public convenience and necessity (CPCN) and unknown to them, the CAB granted the company a TOC and an official designation to Japan for six months or from May 6, 2002 to Nov. 5, 2002.

It will be recalled that the CAB earlier dismissed CLA’s applicatio for CPCN after it was found out that the company violated the 60 percent Filipino and 40 percent foreign ownership as provided under the Constitution. The company was 51 percent owned by Filipinos and 49 percent by Japanese.