Tourism

P8.6B per month in dole outs: Lucio Tan, Gokongwei, Mikee Romero asking for taxpayers’ money to rescue PAL, CebuPac, Air Asia from bankruptcy

Bilyonaryos Lucio Tan, Lance Gokongwei and Mikee Romero are asking the government for a staggering P8.6 billion monthly subsidy from government to rescue their respective airlines from bankruptcy.

Bilyonaryos Lucio Tan, Lance Gokongwei and Mikee Romero are asking the government for a staggering P8.6 billion monthly subsidy from government to rescue their respective airlines from bankruptcy.

During the hearing of the Senate committee on public service on May 11, Air Carriers Association of the Philippines (ACAP) vice chair Roberto Lim said his members – Tan’s Philippine Airlines, Gokongwei’s Cebu Pacific, and Romero’s Air Asia would need P6.8 billion in working capital infusions and P1.3 billion in wage subsidies every MONTH.

“In terms of performance, for the airline carriers we have a P5 billion loss. Based on the numbers. The losses will accelerate because until today, there is absolutely no revenue generated by the local carriers,” Lim told senators.

“In terms of employees, if you just add the regular employees that’s about 25,000, but if you add the associated entities that support the airline industry, including the travel and the hotel because they are all interlinked industries to aviation, it is estimated there will be about 500,000 jobs at stake,” he added.

Lim cited an International Air Transport Association (IATA) that the Philippine airline and travel industry could lose up to $4.9 billion for the whole of 2020.

The global travel industry grounded to a halt two months ago as the Philippines and other countries locked down their borders to contain the deadly pandemic.

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