PUBLIC ADVISORY


Passenger Fuel Surcharge Level 3 for 1 January to 28 February 2019
CLOSE

IMPLEMENTATION OF PARAGRAPH 9.2, SECTION 9 OF CAB ECONOMIC REGULATION NO. 9, OTHERWISE KNOWN AS THE AIR PASSENGER BILL OF RIGHTS

-- Download this Advisory
CLOSE       

Print
09
Oct

AirAsia asks gov’t to scrap travel tax, airport fees

Written by bh0ngg. Posted in News

AirAsia Philippines Chief Executive Officer Dexter M. Comendador said the budget carrier submitted a proposal last month to the departments of finance, tourism, trade and industry, and transportation, seeking the removal of the travel tax collected by the Tourism Infrastructure and Enterprise Authority (TIEZA), as well as airport fees

“We kept on asking the government that they give us incentives… One is airport fees. We are talking to CAAP [Civil Aviation Authority of the Philippines], could you please waive airport fees for about three to five years? It will lessen our operational costs,” Mr. Comendador told reporters in a recent interview.

“We asked also the DoT (Department of Tourism) to remove first the TIEZA fee of [about] P1,600 so that we can stir outbound traffic,” he added.

Airline passengers leaving the Philippines are charged a full travel tax of P1,620 for those in economy class, and P2,700 for those in first class. Overseas Filipino workers and Filipino permanent residents abroad, among others are exempted from paying travel tax.

However, scrapping the travel tax would need legislative action. Under Republic Act No. 9593 or the Tourism Act of 2009, 50% of the travel tax collection will be given to TIEZA while 40% is allotted for the Commission on Higher Education for tourism-related educational programs, and the remainder will be given to the National Commission for Culture and the Arts.

“Inbound traffic is easy, but travel is two-way…. I have to stir up the domestic tourists to go out. One way is to remove the P1,620, and hopefully the airport fees. That will total roughly P2,000 per passenger, because airport fee is P500… If a family of five goes to Hong Kong, [they will spend] P10,000, and they haven’t left the Philippines yet,” Mr. Comendador said.

Airport terminal fees, also known as Philippine passenger service charge, range from P50 to P200 for domestic flights, and P550 to P700 for international flights.

“We have a study that says if you take away the travel tax and the airport fee, you will lose roughly P4 billion in five years. But, you will gain P299 billion in terms of tourists coming in, [from] direct revenues and induced [revenues],” Mr. Comendador said.

The AirAsia Philippines CEO said waiving fees will encourage more Filipinos, particularly those in the provinces, to travel.

So far, Mr. Comendador said they have received positive feedback, particularly from Bohol Governor Edgardo M. Chatto who was open to waiving fees at the Panglao Airport.

Earlier, AirAsia Group CEO Tony Fernandes had raised the issue of lowering airport taxes, particularly in small airports, during a meeting with Department of Finance (DoF) Secretary Carlos G. Dominguez III.

LCCT IN CLARK?
Meanwhile, Mr. Comendador said Philippines AirAsia is also in talks with the government for a proposal to build low-cost carrier terminals (LCCT) or budget terminals, similar to the  Kuala Lumpur International Airport 2.

“In fact, we’re willing to offer our engineer, we have an engineer in AirAsia Group, who helps in designing low-cost carrier terminals,” he said.

Mr. Comendador said LCCT will allow 25 minutes turnaround time, as it uses stairways instead of tubes which will allow passengers to deplane in five to ten minutes.

AirAsia is proposing to convert Clark International Airport Terminal 1 into an LCCT, with the upcoming construction of new terminals for the expansion of the airport.

“We’re requesting that they convert Terminal 1 into a low-cost carrier terminal if they want (terminals) 2, 3, and 4 to be world class,” Mr. Comendador said.

AirAsia Philippines is planning to raise up to $250 million from an initial public offering (IPO) by mid-2018. Proceeds will be used primarily to expand its facilities. — Patrizia Paola C. Marcelo

 

AIR PASSENGER BILL OF RIGHTS

CAB Hotline

Public Assistance 24/7

165-66

Secondary Numbers: PASSENGER RIGHTS ACTION DESK (PRAD)

AIRPORT CONTACT NUMBER AIRPORT CONTACT NUMBER
NAIA Terminal1 0919-9128457 Laoag 0998-5864834
NAIA Terminal2 0919-9128458 Legaspi 0919-9128461
NAIA Terminal3 0919-9128451 Mactan-Cebu T1 0919-9128464
NAIA Terminal4 0919-9128470 Mactan-Cebu T2 0998-9668315
Bacolod 0998-5864828 Masbate 0998-9668314
Basco 0998-5864829 Naga 0919-9128462
Boracay 0919-9128453 Ozamis 0998-5864835
Busuanga 0919-9128460 Pagadian 0998-5864836
Butuan 0998-5864830 Puerto Princessa 0998-5864837
Camiguin 0998-5864831 Roxas 0998-5864838
Clark 0919-9128471 Siargao 0919-9128456
Davao 0919-9128469 Surigao 0998-5864839
Dipolog 0998-5864832 Tacloban 0998-5864840
Dumaguete 0998-5864833 Tagbilaran 0919-9128465
General Santos 0919-9128467 Tuguegarao 0998-5864841
Iloilo 0919-9128466 Virac 0919-9128463
Kalibo 0919-9128454 Zamboanga 0998-5864842
Laguindingan 0919-9128468

✆ 852-8967 (CAB Legal Office)
APBR@cab.gov.ph

Trunk Lines:
☎ (+632) 853-7259
☎ (+632) 854-5996

complaints-button

flight-information-button

summary-of-the-rights-of-air-passengers-thumbnail

things-to-know-button

transparency-seal

cab-gender and development

Freedom of Information Philippines

citizens-charter

Vicinity Map

Vicinity Map of CAB

Web Stats

Today51
Yesterday232
Week1892
Month4583
All381202

Currently are 73 guests and no members online