Cebu Pacific ordered to pay P52-million fine
THE PHILIPPINE AVIATION regulator said on Monday it had fined Cebu Pacific Air at least P52 million for what it described as “operational lapses” that led to massive flight delays and cancellations during the Christmas holidays.
In a mobile phone reply on Monday, Civil Aeronautics Board (CAB) Executive Director Carmelo L. Arcilla said that “after considering all available data and arguments, the Board concluded that the main culprit was Cebu Pacific’s operational lapses and mishandling of passengers.”
“The Board therefore issued a strong reprimand and imposed a fine against Cebu Pacific in the amount of P52.21 million,” Mr. Arcilla said.
Officials of Cebu Pacific Air said they will “issue an official statement once we get a copy of the decision.”
The budget carrier had a total of 20 cancelled and 288 delayed flights at the Ninoy Aquino International Airport Terminal 3 from Dec. 24 to Dec. 26, according to data it earlier submitted to the CAB.
In explaining the basis for the fine, Mr. Arcilla said aviation authorities found that “Cebu Pacific’s operational lapses and passenger mishandling constitutes a breach of the basic condition of its Certificate of Public Convenience and Necessity, i.e., to provide proper, suitable, convenient, safe, adequate and reliable air transportation services.”
Shares in Cebu Air, Inc. gained 0.60% or 50 centavos to P84.50 each. In a public hearing last month, the no-frills airline blamed the flight cancellations and delays on the “sudden absence from work of ground crew, weather condition and air traffic congestion.”
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