MANILA – The country’s flag carrier Philippine Airlines and the Department of Budget and Management’s Procurement Service signed on Tuesday a general fares agreement on domestic travel for an initial 23 national government agencies.
The agreement covers only official domestic trips of government officials, employees and personnel which will get an entitlement of 8 percent discount for economy class reservations, 10 percent discount for business class, additional baggage allowance, and waiver of processing fee worth P250 per ticket, and waiver of fees for first rebooking.
The discount on economy class travel translates to an estimated savings of P830.93 million, and with the waiver of the P250-processing fee, the government will save P519.38 million.
The government allots P10.3 billion budget for domestic airline travel for 2016.
According to procurement service Executive Director Atty. Jose Tomas C. Syquia, their 2015 survey found that airline tickets ranked as a one of the top commonly-required item in the procurement activities of government agencies.
The roll-out plan for the “Domestic Air Travel as a Common Use” program will start in May.
During the initial implementation, ticket purchases will be charged under the PS-PhilGEPS’ revolving fund, in coordination with the Land Bank of the Philippines to take into account the existing credit lines of government agencies. (With PNA report)