FAA and EU Downgrades and Other Controversies
On January 17, 2008, the United States Federal Aviation Administration (FAA) downgraded the Philippines' rating to Category 2 from Category 1, since its Air Transportation Office (Philippines) (ATO) did not fully satisfy international safety standards. Consequently, Philippine Airlines' (PAL) president Jaime Bautista stated that its 2008 growth targets would be lowered. After emerging from eight years of receivership the previous year, PAL was prevented by the FAA decision from increasing US flights from 33 per week. Then President Gloria Macapagal-Arroyo dismissed acting Air Transportation Office chief Danilo Dimagiba after the downgrade and designated Department of Transportation and Communications Secretary Leandro Mendoza as concurrent Officer in Charge of ATO. Also, the Embassy of the United States in Manila warned US citizens in the Philippines "to refrain from using Philippine-based carriers due to 'serious concerns' about the ATO's alleged mishandling of the aviation industry." Dimagiba blamed lack of funds for the FAA downgrade, alleging that ATO needs Php 1 billion ($1 = Php 40), roughly around $25,000,000.
Effective April 1, 2010, the European Union, following the FAA's lead, banned Philippine carriers from flying to Europe. Asia Times reported, "EU ambassador Alistair MacDonald said: 'The commission considers that the supervisory authority is currently not able to implement and enforce the relevant safety standards, and decided therefore to ban from EU airspace all air carriers licensed in the Philippines until these deficiencies are corrected.'"
On June 19, 2010, important navigation equipment at the Manila airport maintained by CAAP failed. The VHF omnidirectional range (VOR) used by aircraft for navigating to and from the airport stopped working due to heavy rain and there was no available replacement. One had to be brought from another airport.
Read more about this topic: Civil Aviation Authority Of The Philippines