Phasing Out Airlines to One Operator

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LETTER OF INSTRUCTION NO. 68: Phasing Out Airlines to One Operator

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Title Supreme Court: 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.

international operations

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Formation and Role of Supervisory Committee

A committee comprising the Civil Aeronautics Administration and Philippine Air Force under the Secretary of National Defense as Chairman shall be formed.
The committee is tasked to decide on routes or points for joint operations of Air Manila and Filipinas Orient Airways.
The committee shall submit route recommendations to the Civil Aeronautics Board.

Supervision and Operational Control

International operations are exclusively for Philippine Air Lines (PAL).
Domestic joint operations of Air Manila and Filipinas Orient Airways along with PAL’s operations shall be supervised by the Secretary of National Defense or a designated representative.

Financial Management of Domestic Airline Revenues

Revenues from domestic airline operations must be placed in a special account.
These funds are to be used specifically to meet the liabilities of the respective airlines.

Rationalization and Future Planning of the Airline Industry

The policy aims for the eventual phasing out of all airlines except one.
Current measures are temporary to address personnel absorption and equipment utilization issues.
Studies must be conducted for the final phase of rationalizing the industry into a single airline.
The primary goal is to improve efficiency of airline services.

Service Coverage and Efficiency Targets

Out of 58 domestic routes, only 31 are currently being serviced.
Airlines are mandated to increase the serviced routes to 50 for improved service coverage.

END