Government to urge Air France-KLM not to limit Phl operations

MANILA, Philippines - The Aquino administration will do its best to encourage Air France-Royal Dutch Airlines KLM to maintain direct flights daily from Europe to Manila amid threats that the airline would limit operations in the country due to taxes imposed by the government, Malacañang bared yesterday.

Officials of Air France-KLM were frustrated by government inaction on their appeal to abolish the common carriers tax and the gross Philippine billings tax on cargo and passenger revenues.

Cees Ursem, country manager of Air France-KLM, said the Aquino administration should stop imposing the taxes to prevent the airline from stopping direct flights from Amsterdam in the Netherlands to Manila and vice versa.

Deputy presidential spokesperson Abigail Valte said in a press briefing that Transportation Secretary Manuel Roxas II would talk with the airline officials and discuss their concerns.

Asked whether it was possible for the Philippines to defer the collection of taxes that the airline was complaining about, Valte said, “We would have to wait for the result of the discussions between Secretary Roxas and Air France-KLM.”

“We are certain that they have concerns and Secretary Roxas would be the proper person to address them,” Valte said.

She said KLM’s continued operation in the Philippines was not “just important to the economy, it’s important for our people as well and for tourism.”

Ursem said the taxes had been imposed since 1997 and because of that, seven European air carriers have ceased flying out of Manila.

When told that Roxas would talk to the airline, Ursem said he had heard many promises before from government bureaucrats, but all of them to no avail.

He said he talked to former finance secretary Margarito Teves, Finance Secretary Cesar Purisima, Batangas Rep. Hermilando Mandanas, Speaker Feliciano Belmonte Jr., former tourism secretary Alberto Lim, former Customs commissioner Angelito Alvarez and Executive Secretary Paquito Ochoa Jr.