One limitation resulting from the downgrade to Category 2 that Dimagiba failed to mention is that no other new operator may open routes to the U.S. This means that PAL, while being limited to their existing number of flights will remain as the only operator in the Philippines allowed to fly to the U.S. Here's the section that states this limitation:
“Expansion or changes in services to the United States by such carriers are not permitted while in category 2, although new services will be permitted if operated using aircraft wet-leased from a duly authorized and properly supervised US carrier or a foreign air carrier from a category 1 country that is authorized to serve the United States using its own aircraft,” the FAA said.
Under the second group of countries, or those which do not have existing operations to the US at the time of the assessment, their carriers will not be permitted to start service to the US while in category 2 status, the FAA said.
Smells fishy to me. A stroke of genius?
While it seems at first that PAL, being the only local airline with operations to the U.S. are the ones affected by the downgrade, they are now practically guaranteed to have exclusive access to this lucrative route.