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View Full Version : CA voids FedEx permit to operate in Phl



jake
22nd July 2013, 09:08
MANILA, Philippines - The Court of Appeals (CA) has effectively stopped the operations in the country of international forwarding firm Federal Express (FedEx).

The fourth division of the appellate court last week voided the permit granted in 2011 by the Civil Aeronautics Board (CAB) to Federal Express Pacific Inc.

The CA ruled with finality that FedEx’s operations in the country violate the constitutional ban on foreign ownership of firms delivering public utility services.

In a two-page resolution released last week, the CA denied the motion for reconsideration filed by FedEx.

Instead, it affirmed its decision last Jan. 23 which held that FedEx is a foreign corporation and could not engage in public utility services such as international airfreight forwarding.

The court reiterated that FedEx’s operations are detrimental to the interest of local competitors and of the Philippine economy as a whole.
Headlines ( Article MRec ), pagematch: 1, sectionmatch: 1

“We hereby declare respondent Federal Express Pacific, Inc., a ‘foreign corporation,’ disqualified in our country from operating as an ‘international airfreight forwarder’ which is clearly a public utility,” read the ruling penned by Associate Justice Danton Bueser.

Associate Justices Amelita Tolentino and Ramon Garcia concurred in this decision.

http://www.philstar.com/headlines/2013/07/22/997031/ca-voids-fedex-permit-operate-phl

The Philippine government say they want to attract foreign investment and they turn round and do this :Erm:

Terpe
22nd July 2013, 09:59
Oh dear. Seems FedEx really got under someones skin. Probably ran 'too-tight-a-ship'

I'm not sure exactly what operations still remain in Philippines, but I recall that their Asian-Pacific hub at Subic Bay essentially closed down some years ago. Followed by large numbers of local support business also closing down with considerable loss of jobs.

I doubt this latest move will cause huge ripples, but I'll bet FedEx will never again return to Phils in terms of major operations.
Shooting and foot come to mind.

fred
22nd July 2013, 11:51
They are competing with Filipino hierarchy family led businesses.. It was always only a matter of time!!Its more fun and less competitive in the Philippines!!

jake
22nd July 2013, 13:42
They are competing with Filipino hierarchy family led businesses.. It was always only a matter of time!!Its more fun and less competitive in the Philippines!!

:xxgrinning--00xx3:

Will send the package by LBC tomorrow just before i go to the Araneta Coliseum!

somebody
22nd July 2013, 21:31
Then soon there will be TV programmes and news paper articles wondering why pinas never seems to get going as a go to business place.
If the us, middle East or europe or somewhere suddenly kicked out the ofws from working as not locals they would wonder why but would find it hard to argue against with their own protectionest methods. I have written before the huge Japanese company I work for avoids the Phillipines like the plague for various reasons but this is one of them that the goverment or authorities will one day meddle and cost the company a fortune.

jonnijon
22nd July 2013, 23:16
The LBC where I live is a pain. You havnt put the persons name on the form sir,no thats because its a company not a person :cwm23: but we must have a name sir :cwm23:and you must open the envelope and show me what is inside.I am not going to open the envelope it has confidential documents inside,but you must sir.:Brick: So you can guess the rest :doh