Philippine House backs another 50-year franchise for Cebu Pacific
Lawmakers approved the bill with 289 votes in favour, none against and two abstentions. It includes fuel-risk planning and fare regulation requirements.
The Philippine House of Representatives has passed legislation on its third and final reading that would give Cebu Pacific another 50-year operating franchise. House Bill 11536 received 289 votes in favour, with no opposition and two abstentions.
Under the bill, the airline would have to charge fair and reasonable rates for carrying passengers, mail and property. Those charges would remain subject to regulation and approval by the Civil Aeronautics Board (CAB), or another regulator designated by the government.
The measure also requires a framework to safeguard fuel supplies against severe price volatility linked to war, crises, supply disruptions and other extraordinary circumstances. Cebu Pacific could determine what is financially prudent and operationally feasible, but the framework must comply with applicable aviation safety standards.
Changes to passenger or freight charges during a declared fuel crisis or national emergency would need prior CAB authorisation or approval under applicable rate rules. The airline would also have to file a Fuel Risk Management and Contingency Plan with the board, without having to reveal commercially sensitive or proprietary contract terms.
Other provisions require government licensing for aircraft and flight crews, as well as continued aircraft airworthiness. Equipment and its operation would remain open to inspection and regulation by the Civil Aviation Authority of the Philippines.
Albay Representative Adrian Salceda said Cebu Pacific helps connect island communities and secondary destinations with tourism and commercial centres. He stressed that a legislative franchise does not remove government oversight.
