US embassy cable - 05MANILA4814

UNCLAS SECTION 01 OF 02 MANILA 004814 
 
SIPDIS 
 
Sensitive 
 
STATE FOR EAP/PMBS 
STATE ALSO PASS USAID FOR AA/ANE and AA/G 
TREASURY FOR OASIA 
TRANSPORTATION FOR FAA 
SINGAPORE AND TOKYO FOR FAA 
 
E.O. 12958: N/A 
TAGS: EAIR, PGOV, EINV, RP 
SUBJECT: Air Traffic Controller Staffing "Not Unsafe" 
 
REF: A) Manila 4421 
 
     B) Manila 3838 
     C) Manila 3760 
     D) Manila 1150 
 
Sensitive but Unclassified - Not for Internet - Protect 
Accordingly. 
 
1.  (SBU) Summary.  Our most recent discussions and 
observations indicated no aviation safety threat at this 
time due to air traffic controller (ATC) staffing.  In a 
meeting October 6 with DCM, econoffs, and a senior U.S. FAA 
rep, GRP officials acknowledged a staffing deficit but 
provided credible data and background that showed sufficient 
staffing to operate safely with overtime shifts.  GRP 
officials described the situation as "better than one year 
ago" because they are training more ATCs than they lose to 
attrition.  A site tour of ATC and other facilities at the 
Manila Airport and our discussions with U.S. carrier 
representatives also indicated normal and safe operations 
with no evidence to suggest declining air traffic control 
quality.  End summary. 
 
2.  (SBU) DCM, senior FAA rep Chris Metts, and econoffs met 
with Undersecretary for Airport Transportation Security 
Cecilio R. Penilla, Air Transportation Office (ATO) Director 
General Nilo C. Jatico, and other ATO officials on October 6 
to discuss air traffic controller staffing and the potential 
impact on aviation safety.  ATO officials admitted a "43 
percent" staffing deficit but said that they sufficiently 
covered operations by managing overtime within ICAO 
standards, staffing according to traffic needs, and training 
new hires and military ATCs (refs a-b).  ATO officials 
explained that ATCs work a two-hour on, one-hour off 
rotation so that even if they clocked two eight-hour shifts, 
they actually worked at most 8-10 hours in that timeframe. 
FAA rep and emboffs concluded that there are no indications 
or symptoms of any breach of safety. 
 
3.  (SBU) ATO officials described the situation as "better 
than one year ago" because they trained more ATCs than they 
lost to attrition.  The emigration of experienced ATCs 
remains a serious problem.  ATCs receive low salaries, now 
about $340-$535 per month (depending on experience), often 
less than one-fourth the salary of counterparts in the 
region and many multiples below U.S. or European pay scales. 
ATO officials underscored that they are seeking legislation 
to create an autonomous civil aviation authority so that 
they can train, hire, and compensate as needed (refs a-b). 
Current government ceilings on hiring and salaries pose 
major obstacles, and Congress does not assign a high 
priority to ATO funding requests, according to ATO 
officials. 
 
4.  (SBU) ATO officials said that most ATCs appreciate the 
overtime and consider it a vital part of their salaries. 
ATO officials stated that an Executive Order freezing 
overtime pay for Philippine government employees created 
discontent, which nearly erupted in a strike among ATCs (ref 
c).  ATO officials petitioned and received a waiver, 
however, to allow the payment of overtime to ATCs and 
thereby averting any potential crisis.  Jatico suggested 
that Secretary of Transportation and Communication Mendoza 
"misspoke" and may have overstated the urgency to the Charge 
in a misguided attempt to obtain the most funds for this 
cause (ref a).  Jatico agreed that the situation could have 
become dangerous if it had not been immediately addressed 
through the waiver. 
 
5.  (U) In separate discussions with users of the air 
traffic control system here, representatives from Northwest 
Airlines (NWA) and UPS told us that there is no noticeable 
change in air traffic control quality.  Neither carrier has 
experienced or heard of unusual delays in flight operations 
at airports in the Manila area.  Both noted ATC cooperation 
and flexibility; UPS cited coordination for an enhanced 
aircraft approach that should be starting soon.  Embassy 
JUSMAG representative noted that U.S. military pilots 
experienced no sequence, separation, or other flight or 
landing anomalies that would indicate ATC problems.  Metts 
pointed out that the nearest U.S. air traffic facility in 
Oakland corroborated these findings. 
 
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Comment 
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6.  (SBU) All data and conversations with industry suggest 
that ATC staffing is not a safety concern at this time. 
Secretary Mendoza appears to have been off the mark when he 
 
SIPDIS 
described the ATC deficiency as "dangerous" (ref a).  He may 
have meant that staffing shortfalls and low wages were 
dangerous and unhealthy in the larger context of future 
civil aviation developments in the Philippines but was not 
referring to daily operations. 
 
7.  (SBU) The Philippines still faces a possible downgrade 
to FAA Category 2 based on related air safety issues.  In 
order to maintain its Category 1 status, ATO must 
demonstrate in the coming months that its aviation action 
plan, drawn up last year, is on track and sustainable (ref 
d).  GRP officials and FAA rep agreed that Congressional 
legislation to create a civil aviation authority is needed 
to ensure sustained funding for training and other important 
ongoing activities in the action plan.  This legislation 
would also establish the enforcement authority necessary to 
run an aviation oversight industry.  FAA officials plan to 
return to Manila to review progress on this issue in the 
next two months.  However, Congress, currently distracted by 
a number of political controversies and potential 
constitutional amendments, may have difficulty focusing on 
this critical legislation for civil aviation.  In addition 
to implications for air safety, a downgrade to Category 2 
would also represent an embarrassment for the Arroyo 
Administration, a serious problem for the important tourism 
sector, and another negative signal to the investor 
community. 
 
Jones