EU firms urge Manila to boost aviation sector
The European Chamber of Commerce in the Philippines (ECCP) has called on the Philippine government to work on raising the pay of aviation professionals in the country and to provide incentives to the sector.
The measure is among the ECCP’s policy recommendations to the government this year to improve the local business environment.
“The Philippine aviation industry plays a crucial role in the country’s economic growth. However, one significant challenge it faces is the notable pay disparity between aviation professionals in the Philippines and those in other countries,” the group said in its report entitled “ECCP Advocacy Papers 2024.”
The ECCP said this pay gap affects not just the morale and retention of skilled professionals, adding that it also hampers the industry’s competitiveness as a whole.
The business group said the Philippines is suffering from a brain drain of aviation experts, including airline pilots, airline mechanics and air traffic officers. They noted that starting salaries abroad can be up to six times higher than the local average pay.
“With this, the aviation committee echoes the request of [the Civil Aviation Authority of the Philippines] to the Governance Commission for Government-Owned and Controlled Corporations (GCG) for it to facilitate the adjustment in the salary grades of air traffic personnel,” the report read.
The ECCP also recommended that the government conducts an in-depth analysis of the current pay structures and benefits of aviation professionals in the Philippines compared to those in other countries.
“Concerned government offices must be able to identify key factors contributing to pay disparity, such as differences in industry regulatory environment and market demand,” the ECCP said in the report.
“We also encourage industry-government collaboration to explore potential incentives or subsidies to support fair compensation for Philippine aviation professionals without compromising the industry’s financial viability,” it added.
According to the ECCP, the country’s aviation industry is a pivotal force in driving economic growth by supporting tourism and facilitating trade and commerce.
