DBM: P45.7 million saved Jan.-July in fare agreement with airlines

By Elijah Joseph C. Tubayan, Reporter
THE GOVERNMENT has saved P45.7 million from the Government Fares Agreement (GFA) as of the first seven months of the year, the Department of Budget and Management (DBM) said.
The DBM said that about 160 agencies tapped the GFA program with P480.1 million worth of airline tickets as of end-July 2018.
“Th(ese) savings were generated from airline tickets purchased by government agencies enrolled in the program at a discount of 8% to 9% of the regular prices of participating airlines,” The DBM said in a statement on Friday.
It also noted the amount does not include unquantified savings from additional benefits from the program such as free first rebooking fee, waived processing fee for domestic and international tickets and additional weight allowances, as well as airport lounge privileges.
The GFA is an initiative of the Department of Budget and Management (DBM) and the PS-Philippine Government Electronic Procurement System (PS-PhilGEPS) to “ensure savings in the procurement of the air transportation needs of all government employees for their official trips.”
The government is partnered with Philippine Airlines (PAL) and Cebu Pacific (CEB) since 2016.
It also inked a new GFA with Air Asia Philippines on May 2 this year.