The Department of Tourism urges greater transparency and tighter regulation of airline ticket prices as senators flag infrastructure gaps driving high domestic airfares. Photo courtesy of Department of Tourism (DOT)
NATION

DOT calls for review of airline rules amid rising domestic airfares

Gwen Bergado

The Department of Tourism (DOT) has joined growing concerns over rising domestic airline ticket prices, calling for a review of airline regulations and greater transparency in fare-setting.

During a hearing of the Senate Committee on Tourism on 3 February, DOT Secretary Christina Garcia Frasco urged airline companies to be more transparent, particularly in the publication of ticket prices.

“We are one with the Filipino public in calling for a comprehensive approach towards managing ticket prices, improving infrastructure, and accessibility overall,” Frasco said.

She proposed the clear and transparent publication of just and reasonable rates, as required by law, subject to close scrutiny and regulation by the Civil Aeronautics Board (CAB).

“Starting from this baseline, perhaps then we can allay public concerns on rising costs,” she added.

Frasco also highlighted Republic Act No. 11682, which governs the operation of airline carriers under government-granted franchises, stressing that airfare prices should be fair, transparent, and subject to regulatory oversight. She emphasized that airlines must balance public interest obligations with commercial considerations.

To address airfare-related issues through regulatory alignment, consumer protection, and infrastructure development, the DOT said it is working closely with the CAB, the Department of Transportation (DOTr), the Department of Trade and Industry (DTI), and the Philippine Competition Commission (PCC).

Frasco said she has requested the CAB to present a monthly airline ticket pricing index to improve transparency, prevent market shocks, and support the possible implementation of price ceilings.

“This is why we have advocated as best as we can to ink convergences with our fellow government agencies whose chief mandate falls upon the development of infrastructure and connectivity,” she said.

The DOT also expressed support for the launch of 23 international flights connecting major Philippine gateways such as Manila, Cebu, Clark, Iloilo, and Kalibo to overseas destinations.

Despite tourism gains, infrastructure and safety concerns remain major challenges for the industry. In 2024, the Philippines recorded more than 134 million domestic trips—the highest in Southeast Asia—valued at over $70 billion, surpassing the 122 million recorded in 2019 before the pandemic.

Senate Committee on Tourism chair JV Ejercito said high airfares reflect inadequate facilities and neglected infrastructure.

“When our airports lack capacity, when our runways are too short for larger planes, and when we lack night-rating capabilities, the Filipino traveler primarily pays the price,” Ejercito said, calling for a long-term infrastructure master plan that would outlast political terms.

Meanwhile, Air Carriers Association of the Philippines representative Jose Enriquez Perez de Tagle noted that domestic airlines face higher airport fees and charges due to infrastructure limitations, particularly in destinations such as Siargao, Palawan, and Basco, which rely on turboprop aircraft with limited capacity.

For her part, Senator Loren Legarda urged understanding for the DOT, stressing that airport construction, maintenance, and regulation fall outside the agency’s mandate.

“The DOT is not the one who budgets and builds the airport. They are not the one who sets the night-rating. They are not the one who cleans the bathrooms, asphalts the runways, or polices arriving passengers,” Legarda said.