FedEx to continue PHL operations even after court reso

International freight giant Federal Express (FedEx) will continue its operations in the country despite a recent Court of Appeals resolution voiding the company’s license to operate in the Philippines.

“Pending final decision of the Supreme Court, CAB (Civil Aeronautics Board) has confirmed that FedEx (together with all 30 plus other foreign owned freight forwarders) can continue to operate under the license,” FedEx Philippines public relations specialist Arlene Samaniego told GMA News Online in a phone interview on Tuesday.  

FedEx is operating under an International Straight Forwarders License issued by CAB as an independent utility in the Philippines. The license was issued on May 2, 2011 and is valid until May 1, 2016, she added.

Last week, the appellate court voided the freight company’s permit to operate in the country, explaining that a foreign corporation could not engage in public utility services such as international airfreight forwarding, a Philippine Star report dated July 22 said.

The Court of Appeals 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.

Meanwhile, Samaniego noted that FedEx has increased its investment commitment in the Philippines.

“In the past year, over P500 million has been allocated for the construction of the new Manila and Cebu gateway facilities, Clark costumer service offices, and Manila district headquarters… FedEx added close to 700 jobs in partnership with Philippine companies,” she cited. — BM, GMA News