Lower House renews PAL’s franchise for 50 years

The House of Representatives recently approved the renewal of the franchise of Philippine Airlines for another 50 years.

Lawmakers – 250 voting affirmative, three negative and one abstention – approved House Bill 10545, extending PAL’s legislative franchise originally under Presidential Decree (PD) 1590 to establish, operate, and maintain domestic and international air transportation services. 

The franchise renewal provides PAL with the needed legal framework to sustain its operations and pursue ongoing fleet and route expansion programs.

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 bill permits PAL, a subsidiary of PAL Holdings Inc., to maintain and develop the aircraft, equipment, facilities, and communication systems necessary for its operations. 

The renewed franchise requires 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.

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 pioneer national flag carrier, providing international connectivity, supporting underserved areas and contributing to tourism and commerce.

He 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.