FAA Downgrade
On January 17, 2008, the US Federal Aviation Administration (FAA) downgraded the Philippines' rating to Category 2 from Category 1, since its Air Transportation Office (Philippines) (ATO) did not follow international safety standards. Consequently, Philippine Airlines (PAL) president Jaime Bautista stated that its 2008 growth targets would be lowered. Just out of 8 years receivership last year, the FAA decision prevents PAL from increasing US flights from 33 per week, inter alia. Meanwhile, President Gloria Macapagal-Arroyo dismissed acting Air Transportation Office chief Danilo Dimagiba after the said FAA rating downgrade on the Philippine aviation industry (after it "failed to comply with the aviation standards set by the International Civil Aviation Organization (ICAO): outdated aviation regulations, poor training programs for safety inspectors and sub-standard licensing for air frame and engine inspectors"). She designated DOTC 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 nees P 1 billion ($ 1= P40).
Read more about this topic: Leandro Mendoza