Saludo hits Japanese airline for flying Philippine flag

The Japanese controlled airline that was found to have misrepresented its foreign ownership is now flying the Philippine flag under a temporary authority granted by President Gloria Macapagal-Arroyo under false pretenses.

Representative Aniceto G. Saludo, Jr. (Lone District, Southern Leyte) made this revelation as he asked Malacañang and civil aviation authorities not to renew the application of CLA Air Transport Inc. for an extension of its provisional authority to operate as a cargo airline and official flag carrier of Japan.

“Allowing a Japanese airline to fly the Philippine flag at the expense of struggling Filipino airlines is tantamount to a sellout and betrayal of national interest,” Saludo said in a press statement.

CLA, which presents itself as a majority Filipino-owned airline in spite of the fact that half of the members of its board are Japanese nationals, has applied for a six-month extension of its temporary operating certificate (TOC) which expires Wednesday, November 6, 2002.

Saludo said CLA had deprived the country’s flag carrier, Philippine Airlines, of its cargo slots at the Narita Airport in Tokyo.

CLA had previously declared under oath that 60 percent of its capital was owned by Filipino stockholders.  However, subsequent investigation showed that the CLA was owned 51 percent by Filipinos and 49 percent by Japanese investors in violation of the 60-40 provision under the Constitution.  This was the reason the government denied the airline application for an extension of its temporary operating certificate in 1999.

However, the CLA again filed an application after supposedly restructuring its ownership to conform to the Constitution.  At that time, the application was opposed by PAL, Grand Air and PEAC on the same constitutional grounds.

Saludo said that unknown to the oppositors, the Civil Aeronautics Board (CAB) headed by then Transportation Secretary Pantaleon Alvarez approved the CLA’s temporary permit for the six-month period from May 6 to November 6 subject to the ratification of the full CAB in its succeeding meeting.

However, Saludo said CAB Executive Director Manuel San Jose, instead of waiting for the next CAB meeting to ratify the permit, forwarded the application to the Department of Foreign Affairs and subsequently to Malacañang for approval.

Obviously, unaware of the pre-conditions President Arroyo approved the granting of the six-month extension.

Saludo said Malacañang should not be misled again into approving another extension of CLA’s temporary permit.

He called for the prosecution of CAB and CLA officials behind what he called “a conspiracy to circumvent the Constitution and a sell-out of the national interest.”

Saludo said the CAB resolution that was the basis of the Palace approval of the CLA’s temporary permit was signed by Alvarez, Assistant Secretary Adelberto Yap as vice chairman and Alberto Lim as member.

He said these officials, by allowing a foreign airline which had earlier perjured itself about its ownership, had betrayed national interests and should be prosecuted.

He said CLA presented documents to show that it was owned 61 percent by Filipino stockholders and 39 percent by Japanese nationals.

However, Saludo explained that its board of directors in its incorporation documents and by-laws showed it is composed of four Japanese and four Filipinos plus one Filipino director to be exclusively nominated by Japanese board members, thus giving the Japanese complete control of the board and the company.  In effect, the Filipinos are mere dummies of the Japanese owners, Saludo said.

“With this composition of its board, it is highly probable that this corporation is owned and controlled by the Japanese.  That is why it is imperative to thoroughly investigate the background and other circumstances behind the CLA Air Transport Inc. for violating the anti-dummy law,” Saludo said.

(Released on November 11, 2002)