PHILIPPINE CIVIL AVIATION UPDATE - ICAO AUDIT

UNCLAS MANILA 002609 STATE FOR EAP/MTS, EEB/TRA - VIKI LIMAYE-DAVIS TRANSPORTATION FOR FAA SINGAPORE AND TOKYO FOR FAA SIPDIS SENSITIVE E.O. 12958: N/A TAGS: EAIR ECON EINV ETRD BEXP RP SUBJECT: PHILIPPINE CIVIL AVIATION UPDATE - ICAO AUDIT REF: a. Manila 01774, b. Manila 01390 ¶1. (SBU) Summary: The International Civil Aviation Organization (ICAO) safety oversight audit of the Philippines on October 19, 2009 revealed 88 findings and a Significant Safety Concern (SSC). The Civil Aviation Authority of the Philippines (CAAP) had to immediately address the SSC and develop a corrective action plan to deal with the deficiencies. The CAAP is hopeful that by correcting the main audit findings, the Philippines will soon qualify for reevaluation by the U.S. Federal Aviation Administration (FAA) in order to regain "Category 1" status of their aviation safety rating. End Summary. ¶2. (SBU) The Philippines was audited by the ICAO team on October 19, 2009 under the Universal Safety Oversight Audit Programme. The audit yielded 88 major findings that affected 278 out of 987 protocols, indicating a 28% 'lack of effective implementation' measure. The CAAP is developing a corrective action plan to deal with these deficiencies. The plan will be submitted to the ICAO for further evaluation and will affect the Final Safety Oversight Report published on the ICAO website approximately July 2010. Significant Safety Concern -------------- ¶3. (SBU) The ICAO team also identified a Significant Safety Concern (SSC),which required immediate corrective action - the need to recertify operating carriers according to the new 2008 Civil Aviation Regulations, and develop surveillance inspections of air operators and maintenance organizations. Although the CAAP reported that six international airlines were recertified by early December, and a remedy plan for the remaining SSC issues satisfied the auditors for the time being, the situation is not resolved yet. If the SSC remains a continuing concern, it may have a negative effect on the European Union aviation audit scheduled for March 2010 and the U.S. FAA decision to re-evaluate the Philippines under the International Aviation Safety Assessment program. ¶4. (SBU) Our contacts say the ICAO auditors were impressed by the CAAP's preparedness and ability to answer questions, but noted that the implementation of new rules was seriously lacking. The most important issue, the shortage of qualified inspectors and technical personnel, remains a major challenge for the Authority (reftels). CAAP's prolonged conflict with the Civil Service Commission and the Department of Budget and Management regarding salary increases and qualification standards continues to delay progress. ¶5. (SBU) Comment: Although CAAP officials have spoken of a six to nine-month timeframe to resolve these issues, most observers think it will take much longer. Post continues to raise the need for improved oversight of air safety with private sector and government officials, most recently with the Minister of Tourism, the Minister of Transport, and the owner of a major airline. Without timely progress on improving the "Category 2" rating, Philippine air carriers could end up on the European Union's "blacklist," which could discourage investment, damage key economic sectors, and inhibit growth. End Comment. KENNEY