Fox Business
By Fiona Law
Published March 29, 2011 | Dow Jones Newswires
HONG KONG -(Dow Jones)- China Southern Airlines Co. (ZNH: 27.00, -0.16, -0.59%) said Tuesday it plans to buy six Boeing Co. (BA: 79.64, +0.33, +0.42%) 777 freighters, without elaborating.
The carrier said it would consider using fuel hedging instruments if needed, adding it doesn't do any fuel hedging now.
China Southern also said it is planning capital spending of CNY20.4 billion for this year.
On Monday, China Southern Airlines said its net profit surged to CNY5.80 billion last year because of increased demand for air travel and one-off gains.
Wednesday, March 30, 2011
Tuesday, March 29, 2011
3 Middle East carriers build Manchester as hub to Asian traffic
Manila Bulletin
By STEVE ROTHWELL (BLOOMBERG)
March 29, 2011, 2:38pm
Emirates, Qatar Airways Ltd. and Etihad, the biggest Arab carriers, are pouring capacity into the north English city of Manchester to win Asian traffic as British Airways funnels passengers via its crowded London Heathrow hub.
Emirates, the largest international carrier, said March 9 it would add a third daily flight to Dubai starting May 1 after existing services featuring an Airbus SAS A380 superjumbo were consistently full. The announcement came within days of Qatar and Etihad saying that routes from Abu Dhabi and Doha will go double daily from Aug. 1 and June 1, respectively.
British Airways scrapped long-haul flights from Manchester in 2008, opting to route people through Heathrow, Europe’s busiest airport, on nine daily shuttles. The UK company says it has no plans to revise the model, even though 13 scheduled carriers including Delta Air Lines Inc., Continental Airlines and Singapore Airlines Ltd. offer long-haul services from the airport, which claims a catchment of 20 million people.
“Our clients prefer flying from Manchester, so we’re very pleased with the new routes,” said Irene Hulme, who runs Travel by Design, a specialist in luxury trips to Australia, Asia and North America based in Alderley Edge, 5 miles from the airport. “People think twice about going via Heathrow. On some routes you can have a very long wait, which they find frustrating.”
Manchester was the busiest British airport outside London in 2010, attracting 17.6 million passengers, or 8.4 percent of the national total. That compares with 22 million in 2005, before the reduction in service by BA and UK rival British Midland or BMI, now owned by Deutsche Lufthansa AG. Heathrow handled 65.9 million passengers last year.
The airport, privately managed on behalf of its owners, the 10 boroughs of Greater Manchester county, estimates it will boost passenger numbers 4 percent this year, Chief Executive Officer Charlie Cornish said in an interview last month.
The Gulf carriers are targeting northern England as part of a growth splurge aimed at challenging British Airways and other carriers specializing in long-distance transfer traffic.
Emirates, the largest international carrier, said March 9 it would add a third daily flight to Dubai starting May 1 after existing services featuring an Airbus SAS A380 superjumbo were consistently full. The announcement came within days of Qatar and Etihad saying that routes from Abu Dhabi and Doha will go double daily from Aug. 1 and June 1, respectively.
British Airways scrapped long-haul flights from Manchester in 2008, opting to route people through Heathrow, Europe’s busiest airport, on nine daily shuttles. The UK company says it has no plans to revise the model, even though 13 scheduled carriers including Delta Air Lines Inc., Continental Airlines and Singapore Airlines Ltd. offer long-haul services from the airport, which claims a catchment of 20 million people.
“Our clients prefer flying from Manchester, so we’re very pleased with the new routes,” said Irene Hulme, who runs Travel by Design, a specialist in luxury trips to Australia, Asia and North America based in Alderley Edge, 5 miles from the airport. “People think twice about going via Heathrow. On some routes you can have a very long wait, which they find frustrating.”
Manchester was the busiest British airport outside London in 2010, attracting 17.6 million passengers, or 8.4 percent of the national total. That compares with 22 million in 2005, before the reduction in service by BA and UK rival British Midland or BMI, now owned by Deutsche Lufthansa AG. Heathrow handled 65.9 million passengers last year.
The airport, privately managed on behalf of its owners, the 10 boroughs of Greater Manchester county, estimates it will boost passenger numbers 4 percent this year, Chief Executive Officer Charlie Cornish said in an interview last month.
The Gulf carriers are targeting northern England as part of a growth splurge aimed at challenging British Airways and other carriers specializing in long-distance transfer traffic.
Monday, March 28, 2011
Bombardier inks deal with Chinese aircraft company
Manila Bulletin
March 27, 2011, 1:12pm
MONTREAL (AP) – Bombardier said it is partnering with China's leading aircraft manufacturer to cross-market its new CSeries jet and other aircraft.
Bombardier, the world's third-largest maker of commercial aircraft, and Commercial Aircraft Corporation of China Ltd., or COMAC, have signed a framework agreement to explore working together in marketing and customer service in an effort to help each other increase market share in both emerging and established markets.
Bombardier's vice president commercial aircraft, Benjamin Boehm, said the agreement takes away the sales advantage that its bigger rivals have had.
"A large airline that has a fleet of CSeries would see some benefit in buying a COMAC airplane over a Boeing or an Airbus airplane and vice versa,'' he said.
On the Toronto Stock Exchange, Bombardier shares were trading at CA$6.57 hours after the Montreal-based company announced the deal.
Along with cooperation on Bombardier's CSeries planes, the Canadian company and China's main civil aerospace firm said they will look at collaborating on COMAC's C919 model and future products.
The CSeries will have two models ranging between 110 and 149 seats, beginning the end of 2013. The Chinese plane will have 168 to 190 seats when it enters into service in 2016.
Funding from each company will be determined as projects are devel¬oped.
The deal will strengthen Bombardier's customer relationships in China, which will improve its chances of win-ning sales in the world's most populous country, Boehm said.
March 27, 2011, 1:12pm
MONTREAL (AP) – Bombardier said it is partnering with China's leading aircraft manufacturer to cross-market its new CSeries jet and other aircraft.
Bombardier, the world's third-largest maker of commercial aircraft, and Commercial Aircraft Corporation of China Ltd., or COMAC, have signed a framework agreement to explore working together in marketing and customer service in an effort to help each other increase market share in both emerging and established markets.
Bombardier's vice president commercial aircraft, Benjamin Boehm, said the agreement takes away the sales advantage that its bigger rivals have had.
"A large airline that has a fleet of CSeries would see some benefit in buying a COMAC airplane over a Boeing or an Airbus airplane and vice versa,'' he said.
On the Toronto Stock Exchange, Bombardier shares were trading at CA$6.57 hours after the Montreal-based company announced the deal.
Along with cooperation on Bombardier's CSeries planes, the Canadian company and China's main civil aerospace firm said they will look at collaborating on COMAC's C919 model and future products.
The CSeries will have two models ranging between 110 and 149 seats, beginning the end of 2013. The Chinese plane will have 168 to 190 seats when it enters into service in 2016.
Funding from each company will be determined as projects are devel¬oped.
The deal will strengthen Bombardier's customer relationships in China, which will improve its chances of win-ning sales in the world's most populous country, Boehm said.
‘EO 29 unfair to PHL carriers’
Business Mirror
Sunday, 27 March 2011 20:01 Recto Mercene
THE newly issued Executive Order (EO) 29 that granted unprecedented fifth freedom rights to foreign airlines without assurance that Philippine carriers will get the same reciprocal arrangement put local carriers, like Cebu Pacific and Philippine Airlines (PAL), at great disadvantage.
This was that statement of Fair Trade Alliance (FTA) convener Robert Lim Joseph, a travel and tourism industry leader, as he called on President Aquino to review EO 29 allowing pocket open skies and amend its disadvantageous provisions.
Fifth freedom is the right of an airline from one country to land in a second country, then pick up passengers and fly on to a third country where the passengers then disembark.
Joseph said in a fifth freedom environment, a foreign carrier like Singapore Airlines can fly, say, to the Diosdado Macapagal International Airport (DMIA) in Clark Fiel, Pampanga, pick up passengers there and then fly them to Los Angeles, California.
Joseph raised suspicion that lobby groups like the Makati Business Club and the Freedom to Fly Coalition, which have been pushing for unilateral and one-sided open skies, were behind the issuance of the questioned executive order.
“The Philippines can no longer get reciprocal arrangements or equal benefits from foreign governments because we have already given our skies for free. Our air negotiating panel has no more bargaining power to begin with,” Joseph stressed.
He said the EO unilaterally granted “fifth freedom rights and unrestricted capacities and frequencies to foreign air carriers” with no reciprocity to local airlines.
“This is a lopsided grant given to foreign airlines, which is detrimental to the growth of Philippine carriers,” Joseph pointed out.
“Where is the merit of government’s claim that the EO will bring in tourists when the fifth freedom privilege will instead allow foreign airlines to pick up Filipino and local residents and fly passengers out to a third country?” he asked.
Joseph also questioned government assertion that the EO will enhance the competitiveness of local carriers. “How will you enhance their competitiveness when, in fact, the EO greatly weakened their capability to compete and could even result in bankruptcies.”
“And if our local airlines go bankrupt because of the unfair and uneven playing field, what employment can you generate?” Joseph asked, as he questioned the basis for the investment and job prediction contained in the EO.
He said foreign governments do not unilaterally grant fifth freedom privileges as these are granted only within bilateral discussions with the applicant nation.
Sunday, 27 March 2011 20:01 Recto Mercene
THE newly issued Executive Order (EO) 29 that granted unprecedented fifth freedom rights to foreign airlines without assurance that Philippine carriers will get the same reciprocal arrangement put local carriers, like Cebu Pacific and Philippine Airlines (PAL), at great disadvantage.
This was that statement of Fair Trade Alliance (FTA) convener Robert Lim Joseph, a travel and tourism industry leader, as he called on President Aquino to review EO 29 allowing pocket open skies and amend its disadvantageous provisions.
Fifth freedom is the right of an airline from one country to land in a second country, then pick up passengers and fly on to a third country where the passengers then disembark.
Joseph said in a fifth freedom environment, a foreign carrier like Singapore Airlines can fly, say, to the Diosdado Macapagal International Airport (DMIA) in Clark Fiel, Pampanga, pick up passengers there and then fly them to Los Angeles, California.
Joseph raised suspicion that lobby groups like the Makati Business Club and the Freedom to Fly Coalition, which have been pushing for unilateral and one-sided open skies, were behind the issuance of the questioned executive order.
“The Philippines can no longer get reciprocal arrangements or equal benefits from foreign governments because we have already given our skies for free. Our air negotiating panel has no more bargaining power to begin with,” Joseph stressed.
He said the EO unilaterally granted “fifth freedom rights and unrestricted capacities and frequencies to foreign air carriers” with no reciprocity to local airlines.
“This is a lopsided grant given to foreign airlines, which is detrimental to the growth of Philippine carriers,” Joseph pointed out.
“Where is the merit of government’s claim that the EO will bring in tourists when the fifth freedom privilege will instead allow foreign airlines to pick up Filipino and local residents and fly passengers out to a third country?” he asked.
Joseph also questioned government assertion that the EO will enhance the competitiveness of local carriers. “How will you enhance their competitiveness when, in fact, the EO greatly weakened their capability to compete and could even result in bankruptcies.”
“And if our local airlines go bankrupt because of the unfair and uneven playing field, what employment can you generate?” Joseph asked, as he questioned the basis for the investment and job prediction contained in the EO.
He said foreign governments do not unilaterally grant fifth freedom privileges as these are granted only within bilateral discussions with the applicant nation.
Tourism groups hail 'open skies'
By Helen Flores (The Philippine Star) Updated March 27, 2011 12:00 AM
MANILA, Philippines - The Federation of Tourism Industries of the Philippines (FTIP) yesterday welcomed the signing of two executive orders allowing a partial open skies policy in secondary airports.
In a statement, FTIP president Alejandra Clemente said Executive Orders 28 and 29 signed by President Aquino last March 14 were aimed at liberalizing the entry of foreign airlines with a view to
increasing air traffic into the country.
* Clemente said connecting the Philippines to the network of countries in Southeast Asia will also create livelihood opportunities in the countryside
* “There are four billion people in the Asia-Pacific Region and at least 151 million outbound travelers per year,” she said.
* “There will be increase not only in air seat capacity but room capacity which will generate jobs and foreign exchange receipts which will help pump prime the Philippine economy.”
* EO 28 is for reorganizing the Philippine Air Negotiating Panel (PNAP) and the Philippine Air Consultation Panel (PACP), and EO 29 authorizes the Civil Aeronautics Board (CAB) and the Philippine Air Panels to pursue more aggressively the international civil aviation liberalization policy.
* EO 29 gives secondary gateways outside of NAIA the opportunity to be connected to international and local markets and bring in tourists directly to destinations that will be developed under the National Tourism Development Plan.
* Clemente noted that EO 29 strengthens EO 219 signed by former President Fidel Ramos which liberalized civil aviation to encourage the entry of more domestic and international players.
* “Cebu Pacific, Air Philippines, Sea Air, Zest Air were established since this EO (219) was implemented. The competition they generated resulted in more services to several and underserved destinations, more choices for the traveling public, and cheaper air fares,” she said.
MANILA, Philippines - The Federation of Tourism Industries of the Philippines (FTIP) yesterday welcomed the signing of two executive orders allowing a partial open skies policy in secondary airports.
In a statement, FTIP president Alejandra Clemente said Executive Orders 28 and 29 signed by President Aquino last March 14 were aimed at liberalizing the entry of foreign airlines with a view to
increasing air traffic into the country.
* Clemente said connecting the Philippines to the network of countries in Southeast Asia will also create livelihood opportunities in the countryside
* “There are four billion people in the Asia-Pacific Region and at least 151 million outbound travelers per year,” she said.
* “There will be increase not only in air seat capacity but room capacity which will generate jobs and foreign exchange receipts which will help pump prime the Philippine economy.”
* EO 28 is for reorganizing the Philippine Air Negotiating Panel (PNAP) and the Philippine Air Consultation Panel (PACP), and EO 29 authorizes the Civil Aeronautics Board (CAB) and the Philippine Air Panels to pursue more aggressively the international civil aviation liberalization policy.
* EO 29 gives secondary gateways outside of NAIA the opportunity to be connected to international and local markets and bring in tourists directly to destinations that will be developed under the National Tourism Development Plan.
* Clemente noted that EO 29 strengthens EO 219 signed by former President Fidel Ramos which liberalized civil aviation to encourage the entry of more domestic and international players.
* “Cebu Pacific, Air Philippines, Sea Air, Zest Air were established since this EO (219) was implemented. The competition they generated resulted in more services to several and underserved destinations, more choices for the traveling public, and cheaper air fares,” she said.
Wednesday, March 23, 2011
Open skies, open season
SPY BITS By Babe Romualdez (The Philippine Star) Updated March 22, 2011 12:00
PNoy’s “pocket” open skies policy – with foreign airlines allowed to expand flights to selected parts of the country – continues to draw skepticism from various sectors. For one, there is the issue of reciprocity. While local carriers are limited to a specific number of flights to other countries, the open skies policy would be like “open season” for foreign airlines since they could virtually fly freely in and out of the country, critics pointed out. Of course, Palace officials are downplaying the objections, explaining that the concept of reciprocity has a very broad definition which is not limited to just how much right will be given foreign carriers vis-à-vis local airlines, but also includes “other” benefits like the number of investments that could come in.
But the biggest question now is whether the Philippines is ready in terms of infrastructure and other support facilities. The Ninoy Aquino International Airport only has two runways and three terminals serving close to 40 carriers –which means some 40 planes taking off every two hours. Private aircraft operators also use the main runways with waiting time at the tarmac sometimes for as long as one and a half hours to get clearance for takeoff. Just imagine the aviation fuel wasted by all these aircraft waiting at the tarmac. There is a suggestion that smaller private planes should be limited to the Cubi point Sangley airport to decongest NAIA. Officials however have clarified that the pocket open skies policy does not include NAIA and that a panel will be tasked to determine which secondary airports will be included in the order – but that’s just like putting the cart before the horse.
Tourism Secretary Bert Lim who has been batting for an open skies policy over the past years is optimistic that visitors will breach the five-million mark by 2016 – but one can only imagine just how that can be done when many of our airports have poorly maintained terminal facilities with no water in the toilets and very poor ventilation. So how do we expect to attract more tourists – both of the local and foreign variety – with such poor standards? Aside from security and good service, airports should offer comfort for travelers – but this is almost impossible to maintain when airports are congested.
And then there is also the Category 2 rating that the country has been slapped with by the International Civil Aviation Organization – which in simple terms means that the country is the same, or not much better than third world African countries. If we really want to attract more visitors, we should work on acquiring a Category 1 status to put the country up to par with international aviation safety standards. But if the administration insists on implementing the open skies policy, then it should look into the possibility of transferring operations to Subic Bay International Airport with its huge passenger terminal and 9,000-foot runway and eventually making the Diosdado Macapagal International Airport or Clark Airport the primary airport for international operations whose parallel runways are capable of accommodating new generation wide-bodied aircraft, with the huge aviation complex (in fact, one of the biggest in Asia) able to sustain even cargo operations.
PNoy’s “pocket” open skies policy – with foreign airlines allowed to expand flights to selected parts of the country – continues to draw skepticism from various sectors. For one, there is the issue of reciprocity. While local carriers are limited to a specific number of flights to other countries, the open skies policy would be like “open season” for foreign airlines since they could virtually fly freely in and out of the country, critics pointed out. Of course, Palace officials are downplaying the objections, explaining that the concept of reciprocity has a very broad definition which is not limited to just how much right will be given foreign carriers vis-à-vis local airlines, but also includes “other” benefits like the number of investments that could come in.
But the biggest question now is whether the Philippines is ready in terms of infrastructure and other support facilities. The Ninoy Aquino International Airport only has two runways and three terminals serving close to 40 carriers –which means some 40 planes taking off every two hours. Private aircraft operators also use the main runways with waiting time at the tarmac sometimes for as long as one and a half hours to get clearance for takeoff. Just imagine the aviation fuel wasted by all these aircraft waiting at the tarmac. There is a suggestion that smaller private planes should be limited to the Cubi point Sangley airport to decongest NAIA. Officials however have clarified that the pocket open skies policy does not include NAIA and that a panel will be tasked to determine which secondary airports will be included in the order – but that’s just like putting the cart before the horse.
Tourism Secretary Bert Lim who has been batting for an open skies policy over the past years is optimistic that visitors will breach the five-million mark by 2016 – but one can only imagine just how that can be done when many of our airports have poorly maintained terminal facilities with no water in the toilets and very poor ventilation. So how do we expect to attract more tourists – both of the local and foreign variety – with such poor standards? Aside from security and good service, airports should offer comfort for travelers – but this is almost impossible to maintain when airports are congested.
And then there is also the Category 2 rating that the country has been slapped with by the International Civil Aviation Organization – which in simple terms means that the country is the same, or not much better than third world African countries. If we really want to attract more visitors, we should work on acquiring a Category 1 status to put the country up to par with international aviation safety standards. But if the administration insists on implementing the open skies policy, then it should look into the possibility of transferring operations to Subic Bay International Airport with its huge passenger terminal and 9,000-foot runway and eventually making the Diosdado Macapagal International Airport or Clark Airport the primary airport for international operations whose parallel runways are capable of accommodating new generation wide-bodied aircraft, with the huge aviation complex (in fact, one of the biggest in Asia) able to sustain even cargo operations.
Cebu Pacific airs concerns on open skies policy
Manila Bulletin
March 22, 2011
MANILA, Philippines - Cebu Pacific has welcomed the increase in air services into the Philippines under the open skies policy but expressed concerns about certain provisions of the executive order that are apparently ill-advised.
"Executive Order 29 would afford foreign airlines benefits so critical that if they are not reciprocated by foreign governments the growth and even the survival of Philippine carriers are at risk," the airline said.
Under EO29 foreign airlines would be able to fly freely into and out of the country. On the other hand, Philippine carriers are limited to flights specified in existing air agreements with other countries.
Cebu Pacific cited as examples: Hong Kong carriers could now mount as many flights as they liked to Cebu, whilst Philippine carriers are limited to 2,500 seats per week.
Chinese carriers would be able to fly from any of the major cities of Beijing, Shanghai or Guangzhou to Kalibo whilst Philippine carriers are denied such access by the Chinese.
Korean carriers would have unlimited access to mount flights to Cebu or Davao, whilst Philippine carriers are limited by the current entitlements that are fully utilized.
Singaporean or Malaysian carriers would be granted rights to fly to any country beyond the Philippines. Philippine carriers have no access to additional rights to fly beyond Singapore or Malaysia.
"Furthermore, to gain these rights foreign carriers will not need to invest billions of dollars for their Philippine operations. Their investments are in their own countries. Their employees are not Filipinos."
CEB has invested billions of dollars to expand air services within the country and to and from the Philippines to serve the Filipino public and tourists alike with low fares and brand new aircraft.
The airline employs 4,300 Filipinos and countless thousands more are indirectly employed. "We want the same benefits from the governments of these foreign airlines. We want reciprocity which is fair and reasonable."
March 22, 2011
MANILA, Philippines - Cebu Pacific has welcomed the increase in air services into the Philippines under the open skies policy but expressed concerns about certain provisions of the executive order that are apparently ill-advised.
"Executive Order 29 would afford foreign airlines benefits so critical that if they are not reciprocated by foreign governments the growth and even the survival of Philippine carriers are at risk," the airline said.
Under EO29 foreign airlines would be able to fly freely into and out of the country. On the other hand, Philippine carriers are limited to flights specified in existing air agreements with other countries.
Cebu Pacific cited as examples: Hong Kong carriers could now mount as many flights as they liked to Cebu, whilst Philippine carriers are limited to 2,500 seats per week.
Chinese carriers would be able to fly from any of the major cities of Beijing, Shanghai or Guangzhou to Kalibo whilst Philippine carriers are denied such access by the Chinese.
Korean carriers would have unlimited access to mount flights to Cebu or Davao, whilst Philippine carriers are limited by the current entitlements that are fully utilized.
Singaporean or Malaysian carriers would be granted rights to fly to any country beyond the Philippines. Philippine carriers have no access to additional rights to fly beyond Singapore or Malaysia.
"Furthermore, to gain these rights foreign carriers will not need to invest billions of dollars for their Philippine operations. Their investments are in their own countries. Their employees are not Filipinos."
CEB has invested billions of dollars to expand air services within the country and to and from the Philippines to serve the Filipino public and tourists alike with low fares and brand new aircraft.
The airline employs 4,300 Filipinos and countless thousands more are indirectly employed. "We want the same benefits from the governments of these foreign airlines. We want reciprocity which is fair and reasonable."
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