Title
Phasing Out Airlines to One Operator
Law
Letter Of Instruction No. 68
Decision Date
Mar 30, 1973
Letter of Instructions No. 68 is a temporary solution that allows three airlines to continue domestic services through joint operations, while a committee composed of the Civil Aeronautics Administration and Philippine Air Force, led by the Secretary of National Defense, decides on routes and points to be serviced, with the ultimate goal of rationalizing the industry and having only one airline for improved efficiency.
A

Q&A (LETTER OF INSTRUCTION NO. 68)

Only one airline, the Philippine Air Lines (PAL), is allowed to operate on international routes.

Filipinas Orient Airways, Air Manila, and Philippine Air are allowed to continue domestic services.

They must engage in joint operations to service routes or points decided by a committee composed of the Civil Aeronautics Administration and Philippine Air Force.

The Secretary of National Defense serves as the chairman of the committee.

The committee shall submit recommendations to the Civil Aeronautics Board.

The operations shall be supervised by the Secretary of National Defense or his representative.

All revenues should be placed in a special account to meet the liabilities of the airline concerned.

It temporarily solves the problem of personnel absorption and equipment utilization of Philippine Air Lines with respect to Air Manila and Filipinas Orient Airways.

To have only one airline operating, improving the efficiency of service provided by the airlines.

Out of 58 domestic routes, only 31 are currently serviced; the airlines must increase this to 50.


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