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Airlines Group Supports Government Initiative to Lower Domestic Airfare

Manila: The Air Carriers Association of the Philippines (ACAP) has expressed support for the government's initiative to make domestic air travel more affordable and accessible. ACAP Executive Director Jose Enrique Perez de Tagle emphasized the group's willingness to collaborate with the government and other stakeholders to find practical, long-term solutions aimed at reducing costs and enhancing infrastructure and connectivity.

According to Philippines News Agency, Perez de Tagle highlighted the importance of growing tourism and ensuring the efficient movement of people and goods throughout the country. He also noted that the current domestic passenger volumes have surpassed pre-pandemic levels, indicating a robust market that positively impacts local tourism.

The ACAP pointed out that while lowering fares is a significant step, it is only part of the overall travel costs. The group emphasized that structural cost pressures, including airport charges, taxes, and infrastructure limitations, play a crucial role in the economics of domestic flights.

Both the Civil Aeronautics Board (CAB) and ACAP acknowledged that in certain airports with short runways, airlines are compelled to operate turboprop aircraft with fewer seats. This scenario results in higher costs per seat, posing challenges to serving some domestic markets sustainably and affordably.

The ACAP expressed optimism about building a more resilient and cost-effective domestic air transport system through collective efforts. The CAB announced last Friday that measures are being implemented to reduce domestic airfare costs. These measures include extending runways to accommodate larger jets and upgrading airports to be night-rated, allowing for more flights.