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MANILA, Philippines – The government will not take over the operations of domestic airlines that are slipping due to the drop in global tourism amid the COVID-19 pandemic, Finance Secretary Carlos G. Domínguez III said Wednesday .
Domínguez told members of the Philippine Chamber of Commerce and Industry (PCCI) during the 46th Philippine Business Conference and Expo that the government and airlines had been in “deep” talks for about half a year or since the pandemic based the travel here and abroad.
“They have prepared at least four or five plans for their finances. And the reason they say is that the situation is changing so rapidly that they have to keep reviewing their plans, ”Domínguez said.
Local airlines have lost thousands of jobs as they currently operate very few flights, incurring billions of pesos in losses.
On the government side, “we are prepared to participate in assisting the aeronautical industry,” said Domínguez, who heads President Duterte’s economic team.
Domínguez previously said that the Department of Finance (DOF) was investigating the possible qualification of airlines in the joint venture of national emergency investment vehicles of state lenders Development Bank of the Philippines (DBP) and Land Bank of the Philippines (Landbank ). that it will invest at least P50 billion in a holding company to save corporations deemed “critical to the national interest.”
“But let me point out that any help we have or are going to provide will be just part of the whole process. Private sector banks have to disburse most of the aid, ”Domínguez said.
“I don’t want to be in a position, because the government is not in a good position to assess credit risks. So we will have the participation of private banks and support their efforts to help reactivate the industry, ”added Domínguez.
Domínguez said that “the government does not want to end up owning the airlines.” Domínguez had served as president of the flag carrier Philippine Airlines.
JPV
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