Villar: Use ATO's P3.1 B annual income to improve air safety
New programs should not lead to higher fares

The Philippine Senate responded rapidly to distress calls from the aviation sector of an impending US Federal Aviation Administration to downgrade the country's air safety category by passing last month the bill creating the new Civil Aviation Authority.

"There was a May Day call from the aviation sector so what we did was pass the CAA bill in record time," Senate President Manny Villar and Nacionalista Party President said .

"Paglanding dito ng bill mula sa House, take off kaagad, "Villar said. The bill is now up for reconciliation in bicameral conference but this early Villar sees "smooth flying for the bill."

But Villar said "creating a new regulatory infrastructure for civil aviation is one thing, but upgrading safety standards is another. Actually the former is just a way of achieving the latter."

He revealed "there are internally generated funds to bankroll any program that would allow the country to recoup its Category One rating from the FAA."

Villar said the Air Transportation Office has a projected income of P3.1 billion from fees and charges this year against P1.6 billion that is programmed to be spent for "air transportation services " in the DOTC's P22.3-billion 2008 budget.

"Clearly, ATO is not a losing entity that needs to be subsidized. It can fend for itself, if only it is allowed to retain some of its income or if appropriations are near the level of its revenues," Villar said.

He said tapping internal funds would prevent "some geniuses from hatching up a plan that would jack up fees that would be inflicted on commuters, such as an "air safety modernization fee."

"Upgrades should not lead to new or higher fees. My fear is that this FAA downgrade will be used as bogey for the government or private groups to make some money on the side," he said

In a safety audit done by the FAA, the latter ruled that ATO failed to meet the standards set by the International Civil Aviation Organization, particularly the minimum standards set by the Convention on International Civil Aviation.

Other FAA concerns were outdated aviation regulations, poor training programs for safety inspectors, and substandard licensing for air frame and engine inspectors.