Gatchalian temporarily holds re-entry in the airline business
Posted on December 28th, 2009
Because of the difficulty in obtaining a franchise from Congress, the Gatchalian Group has temporarily shelved its planned airline business.
Atty. Miguel Varela, one of Gatchalian’s partners in the proposed airline company, told reporters they cannot operate yet because they failed to get a franchise, which is an act of Congress. “It is difficult to get a franchise now. Perhaps, in the next administration we can get congressional support,” Varela said.
He stressed that the booming tourism industry needs a strong support services sector. And it does not mean only tourist accommodation facilities, but airlines too. Varela is optimistic that the next Congress would open up for franchise next year.
According to Varela, the Gatchalian Group intends to fly domestic and regional routes as there are areas that are not yet served, or are underserved. He said the new airline would acquire a new fleet as Gatchalian has disposed most of his aircraft after the closure of his old airline firm.
Gatchalian used to own Air Philippines until he sold it to Lucio Tan of the Philippine Airlines.
At present, there are five local airline companies. These are the Philippine Airlines, Cebu Pacific, Air Philippines, Zest Air (formerly Asian Spirit), and Southeast Asian Airlines Inc. (SEAIR).
Another partner, Sergio Ortiz-Luis, said the revival of the airline remains in the planning stage.
The re-entry of Gatchalian in the airline business is seen as strategic to his growing hotel business. He has the Waterfront Philippines Inc. which has under its portfolio four major hotels, which are the Manila Pavilion, Waterfront Cebu City Casino Hotel in Lahug, Cebu, Waterfront Mactan Casino Hotel, also in Cebu and the Waterfront Insular Hotel Davao.
