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Manila Bulletin devider Business devider Trade & Industry devider Lower fares ahead? PAL joins DOTr's commuter-first push

Lower fares ahead? PAL joins DOTr's commuter-first push

Published Sep 8, 2025 12:01 am  |  Updated Sep 6, 2025 12:24 pm
PAL Executive VP and COO Carlos Luis Fernandez (left) and Acting Transportation Secretary Giovanni Lopez (right)
PAL Executive VP and COO Carlos Luis Fernandez (left) and Acting Transportation Secretary Giovanni Lopez (right)
Flag carrier Philippine Airlines (PAL) has expressed its commitment to align with the government’s agenda on connectivity and tourism, as the Department of Transportation (DOTr) pressures local carriers to lower airfares.
“As the flag carrier, we stand ready to align our efforts with government’s connectivity and tourism agenda,” said Carlos Luis Fernandez, PAL executive vice president and chief operating officer.
“We look forward to continuing this productive dialogue with the DOTr under the leadership of Acting Secretary Lopez, confident that our joint initiatives will deliver lasting benefits to the traveling public and to the national economy,” he added.
The move is spearheaded by newly appointed Acting Transportation Secretary Giovanni Lopez, who is part of a broader “commuter-first” policy focused on strengthening the nation’s aviation and tourism sectors.
Lopez, who served as undersecretary under former transportation chief Vince Dizon, announced he is scheduled to meet with airline representatives to continue discussions on the issue.
“Definitely, the objective and the mission is to have them lowered,” he stated, adding that addressing high airfares was among the directives given to him by Dizon, who had intervened after some round-trip tickets to popular tourist destinations like Siargao soared to over ₱30,000.
The price spike, which made domestic travel more expensive than some international flights, has been partly attributed to infrastructure limitations.
Aviation experts point to Siargao's runway, which can only accommodate smaller turboprop jets carrying approximately 80 passengers. The lower capacity of these aircraft prevents airlines from spreading costs across more travelers, leading to higher ticket prices.
To address these systemic issues, the DOTr is collaborating with regulatory bodies on parallel initiatives. The Civil Aviation Authority of the Philippines (CAAP) is pursuing infrastructure upgrades, including a proposed runway extension at Siargao Airport that would allow larger aircraft to operate more efficiently.
Industry leaders view Lopez’s entry as an opportunity to strengthen coordination between the public and private sectors.
Separately, a private consortium has expressed interest in a public-private partnership (PPP) to modernize the airports of Siargao, Davao, and Albay. A proposal to build an international gateway near Siargao Airport is also under consideration.
Lopez has committed to an action-oriented approach, focusing on accelerating major transportation projects to reduce commuting times for Filipinos and boost the economy.

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Philippine Airlines (PAL) Department of Transportation (DOTr)
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