Aircargo Forwarders of the Philippines Inc. (AFPI) president Angelito Colona said that while the government’s decision to liberalize the local airline industry was a step in the right direction, government planners must nevertheless look into how the industry can be further liberalized while taking the situation of affected related sectors into consideration.
The country’s airfreight forwarding sector experienced substantial growth in the past six years as a result of the liberalization of the local airline industry.
From a monopoly, the airline industry now counts three dominant carriers – Philippine Airlines (PAL), Cebu Pacific Airways and Air Philippines – aside from smaller carriers operating within regions like the Visayas and Mindanao.
Cargo forwarders, especially those based in the provinces, depend on local carriers for their operations.
Colona explained that while the air liberalization policy has proven beneficial to the sector, the government must not negate the benefits of liberalization by accelerating this policy needlessly.
"Liberalization is a policy that will affect sectors like the cargo forwarding business. Benefits definitely abound, but we must be cautious in applying this policy lest we kill the very businesses for whom those policy was adopted in the first place," he said.
Colona noted that local carriers, particularly start-ups and regional carriers, all play an integral role in economic development.
"Our sector was caught flat-footed when PAL shut down operations three years ago. We cannot have that kind of an environment hanging over us always. If the industry must be further liberalized, then let it be done so only after a thorough policy review, taking into consideration the situation of the affected sectors," he said.