PUBLIC SERVICES COMMITTEE HEARING

MAY
11
2020

Recto on aviation losses and possible gov’t subsidy to avoid layoff of workers

Virtual committee hearing of the Public Services committee chaired by Senator Grace Poe on the resumption of public transport during COVID-19 crisis. May 11, 2020

  • Recto on aviation losses and possible gov’t subsidy to avoid layoff of workers
  • airline industry in the Philippines already suffered $5 billion losses due to COVID-19;
  • any extension of the ECQ will further increase the losses;
  • an estimated 500,000 jobs (regular airline employees and the interlinked travel and hotel industries) will be at stake;
  • right now there is no large-scale layoff of employees as the airline carriers have continued to maintain the workforce, but a wage subsidy from Congress would help the airline industry sustain it;
  • if government finally comes up with social distancing guidelines for airlines, anything below 70% capacity will not be economically viable
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