CA cancels FedEx permit to operate in PH

MANILA, Philippines – The Court of Appeals (CA) has decided with finality on the cancellation of global airfreight forwarding company FedEx’s permit to operate in the Philippines.

The CA has ruled that FedEx is a “foreign corporation” and is thereby “disqualified in our country from operating as an ‘International freight forwarder,’ which is clearly a public utility.”

This voids the May 2011 one-year license that the Civil Aeronautics Board (CAB) issued to Federal Express Pacific Inc. The license was renewed for another 5 years after expiration.

In a statement sent to media, FedEx clarified that its Philippine operations would continue until a final ruling is handed down by the Supreme Court.

The firm said its license would expire on May 1, 2016.  

Petitions

The CA granted the petitions of Merit Freight International Inc. and Ace Logistics Inc., which both argued that CAB violated a constitutional ban when it issued FedEx a permit.

Merit further said that CAB violated the Filipino First Policy of the Constitution regarding economic regulation.

Meanwhile, Ace Logistics said CAB issued the permit to a “100% foreign-owned and foreign-based firm.”

The decision favoring the petitioners was based on Article XII, Section 11 of the Constitution, which cites that “the participation of foreign investors in the governing body of any public utility enterprise shall be limited to their proportionate share in its capital, and all the executive and managing officers of such corporation or association must be citizens of the Philippines.”

The appellate court’s 4th division said in its two-page resolution that FedEx failed to meet the Constitution’s citizenship requirement.

Declaring the permit null and void is an affirmation of CA’s earlier decision on January 23. The appellate court resolution was penned by Associate Justice Danton Bueser and concurred with by Assoc Justices Amelita Tolentino and Ramon Garcia. – Rappler.com