The appellate court had acted in favor of Merit Freight International Inc. (Merit) and Ace Logistics Inc. (Ace), which had questioned the decision of the CAB to grant FedEx a regular permit to operate from May 2, 2011, up to May 1, 2016. Merit and Ace went to the appeals court to contend that FedEx was a foreign corporation and therefore could not conduct business in the Philippines because air freight forwarding was a public utility reserved for Filipinos.
The decision is done in record time too which highly contrasts with the one regarding the massacre of Filipino journalists in Maguindanao. Anyway. This decision is the very example of what the private sector has been harping about, that such legal provisions hurt the economy. Maybe. Maybe not. (See for example a CRS report on foreign investment in the US) But I understand it’s suspect not to allow FedEx in while allowing BPOs to sprout all over the place when the difference is mere technicality in ownership and location (i.e. should be in EPZA zones). Anyway. Still, this doesn’t need a Cha-Cha. Business and jobs cannot wait for the lengthy process of Cha-Cha, if at all it will happen. Maybe a review and an amendment of the provision.