The House Committee on Legislative Franchises has approved separate legislative measures extending the operating franchises of commercial carriers Cebu Pacific and Cebgo for another 50 years.
Author of the bills, Albay Representative Adrian Salceda, outlined the legislative intent behind House Bill No. 9370 (covering Cebu Air, Inc. / Cebu Pacific) and House Bill No. 6546 (covering Cebgo Inc.), emphasizing that early franchise renewals provide essential regulatory stability to secure long-term investments in aviation infrastructure, fleet acquisitions, and route planning.
“For an archipelagic country like the Philippines, connectivity is economic infrastructure. Kapag mahal o mahirap bumiyahe mula probinsya patungo sa mga sentro ng ekonomiya, hindi lamang pasahero ang naaapektuhan. Tumataas din ang cost of doing business, lumiliit ang access sa turismo at merkado, at nababawasan ang oportunidad sa mga rehiyon.,” Salceda said.
“Kami po sa Albay, we have Cebu Pacific as our most important air carrier. And air connectivity is crucial for us given how difficult the road conditions are in Maharlika Highway,” he added.
According to operational figures cited during the committee proceedings, Cebu Pacific carried 14 million passengers in the first half of 2025, a 21-percent year-on-year increase, operating over 3,300 weekly flights across 124 routes. Salceda highlighted that Cebgo serves a vital role by linking secondary destinations and island communities where smaller regional aircraft are best suited, connecting provincial economies in regions like Bicol directly to major trade and tourism hubs.
However, Salceda made clear that a 50-year franchise extension does not insulate the airlines from ongoing government regulation or public oversight.
“A franchise is a public trust. Fifty years of regulatory certainty must come with fifty years of public accountability,” Salceda said.
“Renewing a franchise is not giving an airline a free pass. The privilege to operate comes with obligations. If they fail to comply with the law and the conditions of their franchise, they must be held accountable,” he added.
Under the provisions of the proposed measures, the franchise grantees will be mandated to comply with strict public interest safeguards. These include maintaining at least 25 percent of total flight frequencies for domestic routes, fulfilling annual reportorial requirements subject to non-compliance penalties, preserving opportunities for public equity ownership through the Philippine Stock Exchange, and continuously upgrading air and ground passenger services.