Lucio Tan’s PAL picked as carrier of govt workers
The Aquino administration has picked Philippine Airlines (PAL) as the carrier of workers of 23 agencies for their domestic airline travel.
The Department of Budget and Management’s (DBM) Procurement Service-PhilGEPS has signed a General Fares Agreement (GFA) with PAL.
Under the Agreement, all official domestic trips of government officials, employees and personnel will be given eight percent discount for economy class reservations, 10 percent discount for business class, additional baggage allowance, and waiver of processing fee worth P250 per ticket, and waiver of fees for first rebooking, among others.
With the eight percent discount on economy class travel, the government is estimated to save P830.93 million, and with the waiver of the P250-processing fee, the government will save P519.38 million.
The government has a P10.3 billion budget for domestic airline travel for 2016.
The PS-PhilGEPS is the main procuring entity of the government.
PS Executive Director Jose Tomas Syquia said a survey conducted by the agency last year found that airline tickets ranked as a one of the top commonly-required item in the procurement activities of government agencies.
“Our partnership with Philippine Airlines will greatly impact government transactions for domestic airline travel. As part of the government’s common requirement which we will aggregate, we can purchase domestic airline tickets faster and easier,” Syquia said.
The roll-out plan for the “Domestic Air Travel as a Common Use” program will start in May with training programs for the hands-on use and navigation of the PAL portal within the PS-PhilGEPS website.
During the initial implementation, ticket purchases will be charged under the PS-PhilGEPS’ revolving fund, in coordination with the Landbank of the Philippines to take into account the existing credit lines of government agencies.