THE House of Representatives has approved on third and final reading a measure renewing for another 50 years the legislative franchise granted to Philippine Airlines Inc. (PAL), allowing the country’s flag carrier to continue operating air transport services in the Philippines and abroad.
Voting 250 affirmative, 3 negative, and one abstention, lawmakers approved House Bill 10545, which seeks to extend PAL’s authority under Presidential Decree (PD) 1590 to establish, operate, and maintain domestic and international air transportation services, providing the airline with a longer-term framework to sustain its operations and pursue future expansion plans.
Under the franchise renewal bill, PAL will retain its authority to provide air transportation services for passengers, mail, and cargo through domestic and international routes. The measure also allows the airline to operate scheduled, non-scheduled, and charter flights, subject to existing laws, regulations, and government aviation standards.
The bill permits PAL, the primary operating subsidiary of PAL Holdings Inc., to maintain and develop the aircraft, equipment, facilities, and communication systems necessary for its operations. It also provides that the airline’s activities remain under the supervision and regulation of appropriate government agencies.
The renewed franchise includes provisions requiring PAL to comply with applicable laws and regulations, create employment opportunities, and observe labor standards. It also maintains that the franchise is non-exclusive and may be amended or revoked by Congress when public interest requires.
The measure further provides that PAL cannot transfer, lease, or assign the franchise or its controlling interest without approval from the government. It also retains government authority to temporarily take over or operate the airline’s facilities during times of war, national emergency, calamity, or public danger.
With the proposed 50-year extension, PAL will continue to hold the authority to operate air transport services while complying with the conditions and responsibilities provided under the renewed franchise.
Deputy Speaker Francisco Paolo P. Ortega V, one of the authors of the bill, emphasized that air transportation remains a vital contributor to economic growth, tourism, trade, and employment. Citing industry data, he highlighted that aviation contributes significantly to the Philippine economy and supports millions of jobs, demonstrating the importance of maintaining a strong national aviation sector.
According to Ortega, while PAL’s franchise under Presidential Decree No. 1590 remains valid until 2034, the proposed early renewal of its legislative franchise reflects Congress’ recognition of the airline’s broader role in national development.
Ortega said the measure recognizes PAL’s role as the country’s flag carrier, providing international connectivity, opening routes, supporting underserved areas, and contributing to tourism and commerce.
He also cited PAL’s public service efforts during the COVID-19 pandemic, including repatriation flights for stranded Filipinos, transport of essential medical supplies, and support for national recovery efforts.