Court of Appeals halts FedEx PHL operations

The Court of Appeals has halted the operations of international freight giant Federal Express (FedEx) in the country due to the constitutional ban on foreign ownership of firms delivering public utility services.

In a Philippine Star report dated July 22, it said the fourth division of the appellate court last week voided the permit granted in 2011 by the Civil Aeronautics Board (CAB) to Federal Express Pacific Inc.

In a two-page resolution released last week, the CA denied FedEx's motion for reconsideration and affirmed its decision last January 23, stating FedEx is a foreign corporation and could not engage in public utility services such as international airfreight forwarding.

With the ruling, the May 2, 2011 resolution of CAB, which granted Federal Express Pacific Inc. a regular permit to operate international airfreight forwarding, has been “null, void and of no further force and effect.”

It cited Article XII Section 11 of the Constitution—which provides that “operation of a public utility shall be granted to Filipino citizens or to corporations or associations organized under the laws of the Philippines.”

Merit Freight International Inc. and Ace Logistics Inc. filed petitions with the CA, questioning CAB's decision to permit FedEx to operate international airfreight forwarding services in the country. — Danessa O. Rivera/BM, GMA News