Philippine House approves new 50-year operating franchise for Philippine Airlines

The House of Representatives in the Philippines has approved, in second reading, a new operating franchise for Philippine Airlines that would run for 50 years, according to the report. The bill is intended to replace the airline's current legal basis for operations and could receive final approval as soon as next week.

Under the proposed franchise, Philippine Airlines would remain bound by the rules of the country's civil aviation authorities, the Civil Aeronautics Board and the Civil Aviation Authority of the Philippines. The carrier would need to continue meeting their operational and safety requirements as a condition of holding the concession.

The legislation also includes tax incentives, covering aviation fuel, aircraft imports and leasing arrangements, the report said. These provisions are aimed at supporting the airline's operating costs over the life of the franchise.

Any transfer of the concession to another party would require congressional approval, according to the bill's terms. That clause is meant to keep control over who may hold the franchise firmly with lawmakers rather than the airline or outside investors.

No further details on the timeline for final passage, or on reaction from the airline itself, were included in the report.