Airlines suffer a shaky start as Philippines eases COVID-19 lockdown

Airlines operating in the Philippines called for swifter and more aggressive government support as a stilted restart to flights this month has done little to bring in much-needed revenue. Philippine Airline, Cebu Air and the local unit of AirAsia Group have only been able to fly about 10% to 15% of their flight schedules despite pent-up demand among stranded travelers and returning migrant workers, company officials said. Lingering concerns over the novel coronavirus outbreak have kept half of regional airports closed, while others have restricted flights to only once a week, Philippines AirAsia CEO Ricardo Isla, said. Most of the Philippines' COVID-19 infections are in the major travel hubs of Metro Manila and Cebu City. Lengthy and changing local-government approval processes have forced last-minute flight cancellations, while jam-packed quarantine venues in the capital region have led to caps on international arrivals, said Jose Enrique Perez de Tagle, vice president of Philippine Airlines, which has resumed flights to the US, Canada, UK, Australia and Japan. "It's a tedious process," said Rosario Logarta-Lagamon, Cebu Air's communications head. "We will not end the problem of stranded passengers if we do not add frequency today." The country's Air Carriers Association is pinning its hopes on Congress passing a 1.3-t-peso ($26b) stimulus bill by August, which would offer credit guarantees, loan facilities and fee waivers for the airline sector. Providing access to capital is more urgent and less costly than a separate government proposal that would allow state lenders to invest in distressed firms, the group's vice chairman Roberto Lim said.<br/>