Saturday, April 30, 2011

Repair facility for A380 to rise in Manila

April 30, 2011
Manila Standard Today
By Eric B. Apolonio

THE Philippines will have a repair facility for the giant A380 jet ready by January, officials said Friday, and even though none of its airports is equipped to handle the commercial flights of the largest passenger airliner in the world.

Lufthansa Technik Philippines on Friday broke ground for the 8,448-square-meter, $30-million aircraft maintenance hangar at the Ninoy Aquino International Airport that will make Manila one of only four places in the world—-after Paris, Dubai and Singapore—where the double-decker, wide-body aircraft may be maintained and repaired.

German Ambassador Christian-Ludwig Weber-Lortsch says the facility, a joint venture by Lufthansa and businessman Lucio Tan’s MacroAsia, will create 400 jobs here and ensure the continued employment of the 2,7000 employees of the publicly-listed MacroAsia.

The groundbreaking was attended by Lufthansa Technik (Germany) chief operating officer Thomas Krueger, Lufthansa Technik chairman Washington Sycip, Ambassador Delia Domingo, Philippine Airlines president Jaime Bautista, Philippine Export Zone Authority Director-General Lilia de Lima, and MacroAsia chairman Joseph Chua.

“We are happy that ... the hangar ... will put the Philippines on the aviation map,” Lufthansa Technik Philippines president Bernhard Krueger-Sprengel said.

“We [also] have a maintenance facility in Clark, and our long-term plan is we follow where the customer goes,” he said.

Thursday, April 28, 2011

AirAsia X renews maintenance contract with Lufthansa Tecknik

April 27, 2011, 4:58pm
Manila Bulletin

MANILA, Philippines — AirAsia X, the world’s first successful long-haul, low-cost airline, has renewed its contract with the Manila-based maintenance, repair and overhaul (MRO) company, Lufthansa Tecknik Philippines (LTP).

Anaz Ahmad Tajuddin, AirAsia X’s Head of Engineering said: “The expansion of the agreement between AirAsia X and Lufthansa Technik Philippines is our commitment towards providing continuous quality services to our passengers."

"The teamwork and partnership we receive from Lufthansa Technik Philippines have ensured proven reliability of our aircraft thus far. We look forward to further breed this partnership in ensuring we are the world’s best.”

The supplemental contract comes a year after the signing of the three-year base maintenance agreement between the two companies that covers base maintenance services to AirAsia X’s Airbus fleet of nine A330s and two A340s.

The contract covers C-checks to be done this year for AirAsia X’s Airbus fleet. During the first year of the agreement, LTP provided MRO services including C-checks, a heavy maintenance check, several cabin retrofit and aircraft painting.

“The expansion of our agreement with AirAsia X is a true manifestation of the success of our partnership with one of the world’s fastest growing airlines today. We intend to make this partnership evolve further by staying committed in delivering results in terms of quality, short and reliable turnaround times, and cost predictability,” said Dino Santos, LTP sales manager.

AirAsia X is the long-haul low fare affiliate of AirAsia, Asia’s leading and largest low-cost airline. It was introduced in January 2007 under the concept of providing long-haul flights at affordable rates.

AirAsia X’s network of destinations includes Australia, China, Taiwan, Korea, Japan France, India, New Zealand, Tehran and the UK. (EHL)

Wednesday, April 27, 2011

Australia threatens Tiger's license to fly

April 26, 2011, 4:46pm
Manila Bulletin

SYDNEY, April 26 (AFP) – Australia's air safety regulator has issued a warning to Tiger Airways Australia, the budget carrier said, with reports linking it to flight training and maintenance concerns.

Tiger, whose parent company is Singaporean, said the Civil Aviation Safety Authority (CASA) had served it a ''show cause'' notice last month threatening to vary, suspend or cancel its licence.

Reportedly related to training and monitoring of pilots and maintenance, it is the first such notice to be issued to a major Australian airline since 2001, when CASA threatened to ground the now-defunct Ansett Airways over jet safety.

A Tiger spokeswoman stressed that there were no serious safety concerns but declined to comment on the details.

''CASA asked Tiger to clarify certain matters, which Tiger has responded to promptly and in full,'' the spokeswoman said.

''Basically what they've done is they've asked for a few corrective measures – those were implemented,' she added.

''If CASA had any concerns they would certainly shut us down. That hasn't occurred. We continue to operate with CASA's approval.''

Regulators were now believed to be considering Tiger's response to the notice.

CASA told AFP it was not ''saying anything really except that we don't comment on show cause notices.''

It came as Tiger cancelled several services in Australia, stranding hundreds of passengers ahead of a five-day break to mark Easter and a war veteran's holiday -- traditionally one of the busiest times for airlines.

Tiger said the cancellations were not due to the show cause notice but related to ''operational issues''.

Passengers would receive a full refund, credit to fly at another time or could be transferred to another Tiger flight of their choice, the spokeswoman said.

Tiger Airways Australia is a subsidiary of Singapore-based Tiger Airways Holdings, which is part-owned by Singapore Airlines. It has been flying in Australia since 2007 and last month celebrated its seven-millionth passenger with a $1 fare sale across 19 domestic routes.

It describes itself as Australia's ''only true low-fare airline'' and has reportedly driven down domestic ticket prices by 30 percent since entering the market.

Biggest US airlines have combined 1Q loss over $1B

Business Mirror
The Associated Press April 26, 2011, 5:05PM ET
By JOSHUA FREED and DAVID KOENIG
Business Week

Biggest US airlines have combined 1Q loss over $1B

With fresh red ink at Delta and US Airways, the five biggest U.S. airlines showed a combined loss of more than $1 billion for the first quarter. Soaring jet fuel prices are the big culprit.

The total loss was only about $100 million larger than a year ago, even though jet fuel spending jumped by 28 percent, nearly $1.9 billion. Airlines were able to narrow the difference in fuel spending with a 12 percent increase in revenue.

They have raised fares seven times since the start of the year and would like to keep doing that to offset higher fuel costs.

"We must fully recapture our costs on every flight, every day, to maintain and improve our earnings performance," said Delta CEO Richard Anderson.

Delta Air Lines Inc., which reported a $318 million loss on Tuesday, said fare increases covered 70 percent of the run-up in fuel costs for the first quarter. That's not enough.

US Airways Group Inc. lost $114 million in the quarter. On Tuesday, it announced new reductions to its flying schedule in the second half of the year, which should cut costs and perhaps drive up fares.

The Delta and US Airways number came after United Continental Holdings Inc. and American Airlines parent AMR Corp. reported huge losses last week. Southwest Airlines Co. was alone among the five biggest U.S. airline operators in posting a profit, and just $5 million at that.

Between them, the five airlines lost $1.08 billion in the first three months of this year, when several big storms in the U.S. and the earthquake in Japan compounded the problem of costly jet fuel. A year ago, the same airlines lost $978 million. Fuel spending jumped to $8.45 billion from $6.60 billion a year earlier.

Still, Tuesday's losses at Delta and US Airways were not as large as analysts had feared. And airline executives' tough talk about raising fares and cutting flights may have cheered investors.

Delta shares jumped 99 cents, or 11 percent, to close at $9.99, US Airways shares rose 52 cents, or 6.3 percent, to $8.80, and other airline stocks also rose. Airline stocks have been hammered recently by rising oil prices. Delta shares are down 21 percent since the beginning of the year, while US Airways shares lost 12 percent.

With fuel costing more than $3 a gallon -- spot prices are up about 50 percent since September -- airlines are culling flights that don't produce enough revenue.

Delta will cut flying 4 percent compared to a year earlier starting in September, including 8 to 10 percent on routes across the Atlantic.

It will also park 20 more planes this year than planned, including some of the largest planes used for international flights. All told, Delta now plans to sideline 140 planes over the next year and a half, from its smallest propeller-driven regional planes to big international jets.

Delta's fuel bill rose 29 percent, or $483 million, in the first quarter compared to a year earlier. Higher ticket prices boosted revenue 13 percent, to $7.75 billion.

Delta's loss for the quarter that ended March 31 was 38 cents per share. A year ago Delta lost $256 million, or 31 cents per share. Analysts surveyed by FactSet expected a loss of 50 cents a share and revenue of $7.61 billion.

For US Airways, the loss was 71 cents per share, or 68 cents per share not counting special items. Analysts expected a loss of 73 cents per share excluding items.

The airline saw fuel costs jump $272 million, almost 39 percent, compared with a year ago. It is the only U.S. airline that does not hedge against fuel price spikes. Executives said they expect to spend $1.45 billion more on fuel this year than last year.

US Airways, based in Tempe, Ariz., also said it would reduce capacity by a half-percent in the third quarter and by 2 percent in the fourth quarter after growing in the first half of the year.

Tuesday, April 26, 2011

The stink at Naia Terminal 1

Manila Standard Today
April 25, 2011

In news reports over the weekend, Manila International Airport Authority general manager Jose Angel Honrado promised that all toilets at the Terminal 1 of the Ninoy Aquino International Airport would be clean, would have running water, and would be provided with paper and soap in the next two to three months.

 I don’t know whether we should laugh or cry.

 On one hand, it is a relief to know that something is finally going to be done about the stink at our main international airport. On the other hand, the context around the planned “improvements” is dismaying.

 First of all it is exasperating that the people in charge of the international airport are doing the planned improvements only because the stink has caught the attention of the global traveling community. The web site “The Guide to Sleeping in Airports” (sleepinginairports.net), recently ranked the NAIA Terminal 1 the fifth worst airport in the world (the top worst in Asia) for the year 2010.

 Honrado took a swipe at the Web site that gave NAIA Terminal 1 a bad rap by labeling it as a Web site “geared toward budget travelers who slept in airports to save on lodging.” He said Terminal 1 could not accommodate airport sleepers, given the space limitations. What he was saying in effect was that the Website was barking up the wrong tree.

 Not that I want to fight for bragging rights to having NAIA Terminal 1 declared as the worst airport, but anyone with half a brain, a fairly good eyesight, and a functioning nose can easily conclude that the only reason we didn’t rank worst overall was simply because we’ve had less traffic compared to the other airports in the list – and yes, because a large percentage of those who give feedback on the website are airport sleepers. If one were to read the comments made by travelers in the Web site, the complaints against Charles de Gaulle, Los Angeles, or even Moscow had to do with facilities that weren’t even available at the NAIA Terminal 1 such as wi-fi and yes, sleeping arrangements.

 So Honrado makes it appear that as things are, he is in fact doing us a big favor that he is responding at all to global criticism on the state of NAIA Terminal 1. If we really come down to it, what the heck does he think his job is if not to make sure that the terminal meets global benchmarks in terms of facilities and services to those using it?

 The stink at the NAIA Terminal 1 didn’t happen overnight and it certainly was there when he came on board as general manager. What took him so long to get around to fixing the mess?

 Many columnists and bloggers (including myself) have been whining about the state of our international airport for quite sometime now. Cecile Zamora Van Straten also known as chuvaness (www.chuvaness.com) has been writing about the mortifying condition of NAIA Terminal 1 for the longest time now, even posting in her blog damning evidence of the decay such as the horrible conditions of its toilets.

 Honrado also makes it appear as if the state of the toilets at NAIA Terminal 1 is the full extent of the problems. I have news for him. The filthy state of the NAIA Terminal 1 toilets is the easiest to pinpoint because it is so blatant that it assaults the senses. But no sir, stinking toilets are a problem, but there are more insidious problems that plague NAIA Terminal 1.

 The other facilities at NAIA Terminal 1 are just awful. There are no decent places for lounging, or for eating, or even shops for browsing. The carpets are in the same condition as the toilets—filthy and smelly. There are not enough chairs so quite a number of passengers have to endure the onset of varicose veins from standing around too long. The last time I went through Terminal 1, my companion had to sit on his carry-on luggage because he didn’t have the courage to sit on the grimy floor and he was feeling the onset of a cramp on his legs. The unspoken rule at the Terminal 1 is simple: If you find a chair, guard it with your life. At the arrival area, one has to fight for trolleys and cough up money to be able to use them.

 The personnel who work in the terminal seem like they have simply been drafted for the job without any consideration for the critical role they play as the first and last Filipinos that travelers coming in or out of the country encounter. Many of them are surly, cannot give answers even to the most basic questions, and yes, prone to corruption. Someone referred to them as thieves in uniform.

 One cannot help but get the impression that everyone in the darned stinking terminal is angling for a tip! The attendants at the toilets are particularly more notorious and they are not even subtle about it, they openly accost people to leave tips. Foreigners pointedly ignore them pretending they don’t understand; but Filipinos cannot pretend not to understand Tagalog so we have to endure the usual sob stories about how miserable their lives are and being made to feel guilty that we have the means to travel while our kababayan are left cleaning up toilets.

 A number of studies have established a direct correlation between employees’ ability to do their jobs well and the state of their work environment. These findings must be relevant in this case because the problems in the other terminals (2 and 3) are not as pronounced as those in NAIA Terminal 1.

 The customs people are just as corrupt, perhaps even more so. The last time I used the NAIA, I came in from a trip from Bangkok. I bought a few (less than 20 pieces of clothing items I bought at the weekend market, nothing fancy or expensive) for relatives. For some strange reason, my luggage had a huge X mark done in chalk when it came out. You cannot believe the kind of trouble I went through as I had to conduct a very public inventory of the contents of my luggage. They didn’t find anything because there was truly nothing that could be taxed and yet the Customs people continued to hassle me, insisting that they were only doing so because the x-ray machine saw something. Someone suggested I pay a fixed amount, a suggestion I quickly melted down with the fiercest glare I could manage. After almost thirty minutes, I pulled out a pen and notebook and went through the motions of documenting the whole thing while dropping hints that I was going to write the customs commissioner about the harassment. They let me pass through.

 My best friend who works for an NGO traveled to Cambodia recently. He seemed to have experienced a sudden charge of nationalism after having seen Angkor Wat because he decided to declare in his entry form a silver band with a semi-precious stone worth about 20 dollars that he bought in Cambodia for his partner. Boy, was he hassled by the Customs people—they even insisted that he pay five times the amount of the ring. Of course they let him go after he started making a scene.

 The annoying thing is that these things happen only to ordinary mortals. People with political connections are treated like royalty and don’t go the aggravations at our international airports.

 Honrado’s promise that conditions at the toilets at NAIA Terminal 1 will soon be a thing of the past is a step in the right direction. But it’s not enough.

Sunday, April 24, 2011

American Airlines hits Orbitz with antitrust suit

Manila Bulletin
April 23, 2011, 8:36pm

FORT WORTH, Texas (AP) – American Airlines raised the stakes in its battle with ticket sellers by suing travel website Orbitz and distributor Travelport Ltd., accusing them of monopoly tactics.

American says the companies are trying to control the distribution of airline tickets to business travelers and are retaliating against American for objecting.

Orbitz and Travelport denied American's charges. Orbitz said Wednesday that American was trying to grab control over ticket distribution to limit customer choice and reduce competition.

American's antitrust lawsuit, filed this week in federal district court in Texas, is the latest twist in an ongoing battle that led American to pull its flight listings from Orbitz last December.

American officials said Travelport was the primary target of their lawsuit. The airline wants to reduce the cost of distributing tickets by requiring online travel agencies to get flight and fare information directly from its computer system, which would cut commissions that so-called global distribution systems charge for providing the data to travel agencies.

In the lawsuit American said most of its passenger revenue still comes from tickets sold by travel agents who get information from the distribution systems. Travelport owns three of the five big systems, which handled $2.7 billion in American ticket sales last year.

Vietnam Airlines set to start London flights

Manila Bulletin
April 23, 2011, 8:30pm

HANOI (Dow Jones) – Vietnam Airlines plans to start direct flights between the country's two largest cities of Hanoi and Ho Chi Minh City and London from late this year, state media said. The country's flag carrier will use Boeing B777-200ER aircraft for the routes, reported the Vietnam News Agency, citing the company's chief executive Pham Ngoc Minh. Minh said Vietnam Airlines will initially operate four flights per week on the routes, and will increase to seven flights per week from 2014, according to the report.

Asiana Airlines taps Lufthansa Technik for heavy maintenance

Manila Bulletin
April 23, 2011, 8:34pm

MANILA, Philippines – Asiana Airlines has contracted Lufthansa Technik Philippines (LTP) for the heavy maintenance check on one of its Airbus A320 aircraft.

“The track record of Lufthansa Technik Philippines in base maintenance check for the Airbus family of aircraft is one of the compelling reasons for entrusting one of our A320s to them," said S.H. Lee, Asiana's general manager for aircraft and support purchasing.

"We are confident that with LTP’s expertise behind our base maintenance requirements, we will be able to continue providing our award-winning service in the skies,” Lee said.

The A320 aircraft is part of Asiana’s mixed fleet of 70 Airbus and Boeing aircraft.

LTP is able to provide base maintenance checks on Korean-registered A320 and A330 aircraft through the Approved Maintenance Organization certificate issued by the Republic of Korea.

“We welcome this development in our years of partnership with Asiana. We are glad that they have recognized the years of partnership that we have with them and our efforts of providing them consistent and top quality service,” said Dominik Wiener-Silva, LTP vice president for marketing and sales.

Lufthansa Technik and Asiana Airlines have already been cooperating for 20 twenty years. Currently, both companies are also working together in the fields of CF6-80 engine maintenance and component services TCS for Airbus A321 and Boeing B737 aircraft.

Asiana Airlines, one of South Korea’s major carriers was awarded the Airline of the Year 2009 by Air Transport World and awarded Airline of the Year 2010 by Skytrax. The airline has placed an order for six Airbus A380s for delivery in 2014. (EHL)

Saturday, April 23, 2011

Asiana Airlines taps Lufthansa Technik for heavy maintenance

April 23, 2011, 8:34pm
Manila Bulletin

MANILA, Philippines – Asiana Airlines has contracted Lufthansa Technik Philippines (LTP) for the heavy maintenance check on one of its Airbus A320 aircraft.

“The track record of Lufthansa Technik Philippines in base maintenance check for the Airbus family of aircraft is one of the compelling reasons for entrusting one of our A320s to them," said S.H. Lee, Asiana's general manager for aircraft and support purchasing.

"We are confident that with LTP’s expertise behind our base maintenance requirements, we will be able to continue providing our award-winning service in the skies,” Lee said.

The A320 aircraft is part of Asiana’s mixed fleet of 70 Airbus and Boeing aircraft.

LTP is able to provide base maintenance checks on Korean-registered A320 and A330 aircraft through the Approved Maintenance Organization certificate issued by the Republic of Korea.

“We welcome this development in our years of partnership with Asiana. We are glad that they have recognized the years of partnership that we have with them and our efforts of providing them consistent and top quality service,” said Dominik Wiener-Silva, LTP vice president for marketing and sales.

Lufthansa Technik and Asiana Airlines have already been cooperating for 20 twenty years. Currently, both companies are also working together in the fields of CF6-80 engine maintenance and component services TCS for Airbus A321 and Boeing B737 aircraft.

Asiana Airlines, one of South Korea’s major carriers was awarded the Airline of the Year 2009 by Air Transport World and awarded Airline of the Year 2010 by Skytrax. The airline has placed an order for six Airbus A380s for delivery in 2014. (EHL)

Vietnam Airlines set to start London flights

April 23, 2011, 8:30pm

HANOI (Dow Jones) – Vietnam Airlines plans to start direct flights between the country's two largest cities of Hanoi and Ho Chi Minh City and London from late this year, state media said. The country's flag carrier will use Boeing B777-200ER aircraft for the routes, reported the Vietnam News Agency, citing the company's chief executive Pham Ngoc Minh. Minh said Vietnam Airlines will initially operate four flights per week on the routes, and will increase to seven flights per week from 2014, according to the report.

Thursday, April 21, 2011

National embarrassment

Wednesday, April 20, 2011
Manila Standard Today

EMBARRASSMENT does not begin to capture the sentiment that many Filipinos feel at the dismal ranking—fifth worst in the world—that the Ninoy Aquino International Airport received from an online travel guide. The shame that such notoriety brings is made more painful by the realization that the assessment is well deserved. The truth hurts.

How many Filipinos who have traveled through the modern airports of our neighbors—Singapore, Hong Kong, South Korea and Malaysia—have not felt a twinge of envy when they compare these towering glass and steel structures with their own port of origin, a squat 28-year-old terminal with concrete walls, tacky vinyl tiles and restrooms that are never quite clean enough?

Unfortunately, the problem goes beyond the physical facilities. Services, too, are poor, as travelers must put up with long queues, especially at Immigration. Free Internet service, a convenience that many seasoned travelers have come to expect from a modern airport, remains a vague promise.

In more cosmopolitan airports, travelers can while away the time before flights at posh shops that they would typically find in an upscale mall. The stalls at Terminal 1, on the other hand, feel like they were transported from a flea market from Tutuban Mall in the Divisoria district.

That all this is allowed to continue at an airport named in honor of the martyred father of the current President must be an extra source of embarrassment for the current administration.

Our collective embarrassment, however, quickly turns to chagrin when we consider how little we get in return for the P750 terminal fee that we must pay every time we fly out through NAIA.

Given the sad state of affairs, we welcomed the Tourism Department’s promise of a major facelift at all three NAIA international terminals before the year ends.

Improvements in the physical facilities include replacing the floors and ceiling, presumably to throw off the Third-World aura of Terminal 1; replacing some walls with glass to create the illusion of more space; and building more presentable restrooms, the department says.

There are also plans to convert the parking lot outside the terminal into a park for people waiting for arrivals.

Tourism Secretary Alberto Lim is absolutely correct when he says that the airport is the first and last impression that visitors have of the country, and we look forward to the improvements that he has promised.

Given this administration’s predilection for charging the public for services that the government ought to be providing free, however, we would oppose any move to increase the terminal fee to cover the costs. After all, Filipino travelers have yet to get back the benefits commensurate to what they have already paid all these years.

Open Skies will boost tourism, govt says

Manila Standard Today
by Jeremiah F. de Guzman
Wednesday, April 20, 2011

THE government on Tuesday defended its Open-Skies policy amid strong opposition from local carriers over the lack of reciprocity.

“It’s not reciprocity but the totality of mutual benefits that should be looked into and its effects on local tourism,” Civil Aeronautics Board executive director Porvenir Porciuncula said in a public hearing.

“I don’t think they [the carriers] will be hurt,” he said.

Porciuncula said the mutual benefits of the Open-Skies policy had less to do with the reciprocity of rights given to carriers but to the effects the policy would have on tourism, employment, investments and cash receipts as a result of an increase in inbound travel.

Porciuncula said the local carriers could also benefit from the increased inbound traffic since only they were allowed to fly domestic routes.

He said that part of the implementing rules of the order provided that if a foreign government failed to provide the same rights granted to its carriers operating in the Philippines within 12 months, the national government could revoke its carriers’ rights.

Two executive orders signed in March reorganized the country’s air negotiating and consultation panels and authorized the Civil Aeronautics Board and the air panels to pursue the liberalization policy more aggressively.

Benjamin Solis, the Transport Department’s aviation management adviser, said the latest executive orders provided the parameters for the aviation agencies of different countries to exchange rights or privileges.

“They may not be exact grants, but there are exchanges and they are mutually done by the bilateral partners,” Solis said.

Wednesday, April 20, 2011

Air fare 'war' heats up airline industry

Manila Bulletin
By EDU LOPEZ
April 19, 2011, 11:54pm

MANILA, Philippines – The entry of budget airlines six years ago has changed the landscape of the domestic airline industry.

Local passenger traffic has increased as air fare rates become more affordable to more Filipinos.

The highly-competitive environment forced domestic airlines to cut fare rates, offering promos, valued-added services, expanding their network and pouring in millions of dollars to acquire more modern and efficient aircraft.

Cebu Pacific (CEB), the country’s leading low-cost carrier, was the first local airline to challenge the dominance of Philippine Airlines (PAL).

CEB has recently increased its turbo-prop flights, strengthening its position further as the largest turbo-prop operator in the country.

The airline operates an average of 82 turbo-prop flights a day compared to Philippine Airlines (PAL) and Airphil Express’ combined 64 flights.

“We utilize our ATR aircraft for 22 destinations and 25 routes, more than PAL and Airphil Express combined,” said CEB VP for Marketing and Distribution Candice Iyog.

“These inter-island flights serviced by our ATR turbo-prop aircraft allow passengers to connect from different provinces to main cities such as Davao, Cebu and Manila. The movement of travelers from one city to another within the country greatly stimulates the tourism and economy,” Iyog said.

CEB operates 12 turbo-prop routes from Manila to Catarman, Tuguegarao and Virac. It also flies from Davao to Cagayan de Oro using an ATR aircraft.

To maintain its lead in the domestic market, Cebu Pacific has regularly offered passengers with promo tickets for advanced travels.

The airline has offered summer seat sale of P777 fare to all its 33 domestic destinations for travel from June 1 to July 31, 2011. It has launched seat sale to Bangkok, Singapore, Hong Kong, Macau, Kota Kinabalu, Taipei and from two domestic hubs for travel from June 1 to August 31, 2011.

Cebu Pacific has slashed its fares by 50 percent to all its destinations for travel from June 1 to August 31, 2011.

“This 50% off seat sale is our way of thanking our passengers for continuing to make us number one in the Philippines. We broke several records when it comes to the number of passengers carried in the 1st quarter of 2011, and we will continue to offer more opportunities for everyone to fly," said Iyog.

Last March 30, CEB flew 36,949 guests, breaking previous records for the most number of passengers flown in one day. The previous records were 36,893 passengers in March 28, 2011 and 34,871 passengers in January 2, 2011.

“With our brand-new aircraft fleet, extensive route network and on-time performance, we hope to break this record again during the peak summer months and help boost travel and tourism to and from the country,” Iyog added.

Cebu Pacific bagged the Budget Friendliest LCC Award at the Low Cost Airlines World Asia-Pacific Conference held in Singapore, besting other contenders Air Arabia, Air Asia, Jetstar Asia, SpiceJet and Spring Airlines.

Voted on by aviation industry professionals and LCC executives in the Asia-Pacific region, the Friendliest LCC Award recognizes the low-cost carrier with the low fares and overall great service.

PAL offers exclusive promos, cuts fares

In response, flag carrier Philippine Airlines (PAL) has unveiled exclusive promos to private or government-owned firms including multi-nationals.

Executives and staff who frequently travel by air can enjoy special perks and added convenience with PAL's special and customized promos and travel packages either individually or as a group, complemented by frequent flyer rewards program and world-class cabin service.

It is also offering "Buy One Take One" special promotional fares on Mabuhay (Business) class.

PAL’s online booking features a fully automated facility called ‘Calendar Pricing,’ which immediately displays the lowest fare available over a seven-day range 'three days before and three days after the planned travel date "thus allowing travelers to decide quickly when it is most convenient and cheapest to fly."

With the recent tsunami and nuclear disaster in Japan, PAL has slashed its fares by more than 30 percent on inbound flights from Narita, Japan to help Filipino evacuees from Fukushima prefecture.

The price of a one-way ticket from Narita to Manila or Narita-Cebu has been reduced for a limited time to about US$335, against the regular rate of US$500.

The airline’s latest airlift assistance is the company’s modest contribution to the Philippine government in repatriating Filipino victims of the earthquake, tsunami and radiation leaks from the Fukushima nuclear reactor.

PAL has carried a 10-ton shipment of relief goods sent by the Department of Social Welfare and Development (DSWD) for Japan. The donated goods were contained in 500 boxes and sacks, consisting of blankets, ready-to-eat food, noodles, bottled water and others.

When the Libyan crisis erupted, PAL has flown Filipino evacuees through repatriation flights chartered by DoLE, securing necessary overfly and landing permits, including ground handling arrangement.

Threatened by the recent union strike, PAL had put in place contingency measures to minimize flight disruptions and avoid passenger inconvenience in case a threatened walkout by its ground workers.

Since its founding 70 years ago, PAL has been linked with the Filipino nation as the pioneer flag carrier, major air transport utility and partner in nation-building.

The flag carrier is bidding to replicate its past success in the more demanding operating and competitive landscape of the future.

As the pioneer national flag carrier, PAL had operated on many occasions special flights to evacuate Filipinos in troubled areas, including the 2008 social unrest in Bangkok, Thailand; the 1990 first Gulf War “the largest to date encompassing 30 flights and more than 10,000 evacuated Filipinos; the 1989 war in Lebanon; and the 1980 Iran-Iraq war that displaced more than a thousand Filipinos who fled to Jordan and Kuwait.

The airline has recently expanded its international network with a new direct service from Manila to New Delhi with six weekly flights, three non-stop flights between the two capitals and three flights routed via Bangkok.

The air fare rates ‘war’ could further heat up competition among the the low-cost carriers (LCC) with the entry this year of the AirAsia in partnership with the Cojuangco group.

Airphil Express continues network expansion

Not to be outdone, Airphil Express, a budget airline and a sister company of PAL, has continuously expanded its network with Singapore as its first international destination.

Airphil has rebranded into a full fledged low cost carrier with its new look, new management and a strong bias for customer benefit. It is the country’s fastest growing low-cost carrier and a strong contender in the regional market.

With its planned additional investments of $250 million dollars, the airline is eyeing the acquisition of 20 more aircraft to service both domestic and the expanding international operations including improvement in technology and operational systems.

Joining the highly-competitive industry is Zest Air, owned by Amb. Alfredo Yao. The airline started operating in September 2008 and expanded to Southeast Asian countries the following year.

Leisure airline SEAIR airline operates in tourist destination from Clark and Manila to Caticlan and Borongan in Visayas; Basco and Clark in Northern Luzon; Baler and Tablas in Southern Luzon; Daet in Bicol; Busuanga in Palawan, and Jolo, Tawi-Tawi and Zamboanga in Mindanao. The airline flies direct service from Manila to El Nido in Palawan to Boracay, and Marinduque.

The airline has acquired more 32-seater Dornier 328’s to meet its growing markets of Batanes, Caticlan, and Romblon.

Open skies policy

Domestic airlines have expressed concern on certain provisions of the open skies policy that would put local carriers at a disadvantage to foreign airlines.

"Executive Order (EO) 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," said Cebu Pacific.

It would allow foreign airlines to fly freely into and out of the country. On the other hand, domestic carriers are limited to flights specified in existing air agreements with other countries.

CEB has invested billions of dollars to expand air services within the country and serve Filipino public and tourists alike with low fares and brand new aircraft.

The airline employs 4,300 Filipinos and countless thousands more are indirectly benefited. "We want the same benefits from the governments of these foreign airlines. We want reciprocity which is fair and reasonable."

CEB has a strong record of supporting increased air traffic rights, and has fought hard for such increases. The airline has been a major driver of tourism growth in this country.

"We believe the push to increase tourism can be achieved, by allowing both foreign and Philippine carriers equal access to traffic rights. We do not believe it is fair to deny CEB the right to compete."

“If the Philippine government puts out the welcome mat for a foreign airline, CEB fully supports that, as long as that foreign airline’s government grants Philippine carriers the same opportunity. All CEB asks for is reciprocity and a level playing field," the airline added.

Open skies regulations out early next month

Business World
April 19, 2011 11:49:19 PM

FOREIGN CARRIERS can begin applying for new entitlements next month with the government scheduling an early May release of rules implementing a "pocket open skies" policy.

A public hearing was held yesterday on proposed guidelines, which Civil Aeronautics Board (CAB) deputy director Porvenir P. Porciuncula said "should be finished by May 2 ... after which we can start receiving applications from foreign [carriers]."

Malacañang last month issued Executive Orders (EOs) 28 and 29, which respectively reorganized the country’s negotiating panels and ordered continued liberalization of the air industry.

The CAB was ordered to draft the implementing rules and regulations (IRR) of the new policy -- targeted at increasing traffic to secondary airports -- and Mr. Porciuncula said the agency would be reviewing position papers due on Monday from airlines, government agencies and other stakeholders.

The CAB yesterday reiterated the government’s position of working towards overall benefits for the country as it noted domestic carriers’ concerns that they would not be getting the same access to foreign airlines’ home countries.

"It’s not reciprocity but the totality of mutual benefits that should be looked into," Mr. Porciuncula said.

The draft IRR allows the CAB to take back entitlements if a foreign carrier’s home state does not allow reciprocal rights within 12 months.

However, it also allows the board to waive reciprocal rights if allowing foreign airlines added entry is seen as in the "national interest."

The reciprocity concern was again raised yesterday by Cebu Air, Inc. and South East Asian Airlines, Inc. (Seair).

"We’re asking that local carriers be given the opportunity to compete," Cebu Air Vice-President Alex B. Reyes said during the public hearing.

"We see that the draft IRR [would give us a] disadvantage if it would open up Philippine skies without mandating that the same benefits would be provided to local airlines," he added.

Seair President and Chief Executive Officer Avelino L. Zapanta, for his part, said the applications of foreign airlines "should be accompanied with the endorsement of their governments that they are willing to grant the same rights to any Philippine carrier." -- K. A. Martin

Cathay Pacific and Dragonair traffic down 2.8% in March

Manila Bulletin
April 19, 2011, 3:25pm

MANILA, Philippines -- Combined Cathay Pacific and Dragonair traffic figures for March 2011 showed a slight year-on-year drop in the number of passengers carried, while there was an increase in the amount of cargo and mail carried.

Both airlines carried a total of 2,159,885 passengers last month down 2.8% on March 2010 while the passenger load factor was down 8.8 percentage points to 76.9%. Capacity for the month, measured in available seat kilometres (ASKs), was up by 9.8%.

Cathay and Dragonair carried 161,461 tonnes of cargo and mail in March 2011, an increase of 1.4% compared to the same month last year, while the cargo and mail load factor was down 10.7 percentage points to 71%.

Capacity, measured in available cargo/mail tonne kilometres, was up by 21.1%, while cargo and mail tonne kilometres flown were up by 5.3%.

Cathay Pacific General Manager Revenue Management Tom Owen said: "Although premium demand remained firm in most markets, the slump in demand on all our Japanese routes is evident."

"North American and Southeast Asian markets remained strong, although it was a challenging month for the Economy Class cabins on European and South West Pacific routes, affected to some extent by an Easter seasonality shift as well as heightened competition. China markets remain encouragingly strong overall, although we face revenue challenges specifically on the Shanghai routes off a very high base in 2010."

Cathay Pacific General Manager Cargo Sales & Marketing James Woodrow said: "While demand back into Asia remained robust during March, the demand from Hong Kong and Shanghai was comparatively soft particularly to Europe." (EHL)

Open-skies draft IRR may be revised after carriers air concerns

Business Mirror
Tuesday, 19 April 2011 20:39   Lenie Lectura / Reporter

THE Civil Aeronautics Board (CAB) is open to revising the draft implementing rules and regulations (IRR) of Executive Order (EO) 29 after airlines voiced out their concerns on reciprocity.

“We will consider all of them. We will discuss all concerns during our May 2 meeting. Afterward, we will issue the final copy of the IRR,” said CAB deputy executive director Porvenir Porciuncula after the public hearing on Tuesday.

Under the proposed IRR, the board is allowing foreign carriers to apply for new air rights or increase in frequencies that are “over and above the limitations imposed by relevant Air Service Agreements.”

Under the existing setup, carriers are granted traffic rights based on the bilateral deals agreed upon by the air panel of both countries.

However, the CAB proposed under Rule IV of paragraph 4.1 that “the Philippine air panels shall hold consultation talks with the respective state of registry of the carriers operating under EO 20 to include such frequencies and capacities in their present bilateral agreement with the Philippines as regular traffic rights. Such inclusion shall include the reciprocal grant to Philippine carriers of equivalent traffic rights by the state of registry of such carriers.”

In case of failure to reach mutual agreement to grant reciprocal rights to Philippine carriers within 12 months from the grant mentioned in paragraph 4.1, the CAB may revoke the said grant.

Section 4.2 states that, “The board reserves the right to revoke, suspend or restrict operations hereby granted in the event that the state of registry of the foreign carrier...failed to extend equal opportunity to Philippine carriers.”

Philippine Airlines (PAL) said it will “challenge” the government if it will pursue to approve the draft IRR.  “Under RA [Republic Act] 776, it should be only for three days within which the government can act on an application. Twelve months are way too long,” said a PAL lawyer, who does not want to be identified.

Cebu Pacific, meanwhile, is pushing for a mutual and equal exchange of sovereign air rights between the Philippines and other countries so local carriers can compete with foreign airlines on a level playing field.

Cebu Pacific stressed during the public hearing that the IRR does not address the need for reciprocity. “Foreign airlines are granted unlimited access to Cebu from Hong Kong but we are still limited to 2,500 seats,” said the airline, adding that without reciprocity it will not be in the position to compete with the foreign airlines which can fly freely to the Philippines.

“EO 29 [Open Skies] opened our skies to bring in more tourists and Cebu Pacific remains supportive of the government’s thrust to boost tourism to the country. If given the opportunity to compete, Cebu Pacific’s trademark low fares will stoke competition and keep the foreign carriers on their toes, which is the best way to bring in the tourists. It will also benefit our own OFWs who work and live abroad. Please allow us to participate in this competition because EO 29 excludes Philippine carriers. We are ready and fit to compete with the best and the biggest foreign carriers under the same rules,” it said.

Cathay Pacific and Dragonair traffic down 2.8% in March

Manila Bulletin
April 19, 2011, 3:25pm

MANILA, Philippines -- Combined Cathay Pacific and Dragonair traffic figures for March 2011 showed a slight year-on-year drop in the number of passengers carried, while there was an increase in the amount of cargo and mail carried.

Both airlines carried a total of 2,159,885 passengers last month down 2.8% on March 2010 while the passenger load factor was down 8.8 percentage points to 76.9%. Capacity for the month, measured in available seat kilometres (ASKs), was up by 9.8%.

Cathay and Dragonair carried 161,461 tonnes of cargo and mail in March 2011, an increase of 1.4% compared to the same month last year, while the cargo and mail load factor was down 10.7 percentage points to 71%.

Capacity, measured in available cargo/mail tonne kilometres, was up by 21.1%, while cargo and mail tonne kilometres flown were up by 5.3%.

Cathay Pacific General Manager Revenue Management Tom Owen said: "Although premium demand remained firm in most markets, the slump in demand on all our Japanese routes is evident."

"North American and Southeast Asian markets remained strong, although it was a challenging month for the Economy Class cabins on European and South West Pacific routes, affected to some extent by an Easter seasonality shift as well as heightened competition. China markets remain encouragingly strong overall, although we face revenue challenges specifically on the Shanghai routes off a very high base in 2010."

Cathay Pacific General Manager Cargo Sales & Marketing James Woodrow said: "While demand back into Asia remained robust during March, the demand from Hong Kong and Shanghai was comparatively soft particularly to Europe." (EHL)

Qantas hikes fuel surcharges, says oil price a major threat

By NARAYANAN SOMASUNDARAM and BALAZS KORANYI
April 19, 2011, 3:16pm

SYDNEY, Australia (Reuters) – Australia's Qantas Airways on Tuesday announced hefty increases in fuel surcharges on international routes in response to surging fuel prices, adding A$100 ($105) to the cost of one-way fares from Australia to Europe and North America.

The increases, the third such move in calendar 2011, were accompanied by fare rises and higher fuel surcharges on domestic routes and followed recently announced plans to scale back some flights and cut management jobs.

''The cost of jet fuel at the moment is the single biggest threat to our business since the global financial crisis,'' Qantas Chief Executive Alan Joyce told a business lunch after announcing the surcharge and fuel hikes in a statement.

Qantas is not only struggling with rising jet fuel prices; its business has also been disrupted by natural disasters in key markets this year, including the Japan earthquake and tsunami, floods in Australia and an earthquake in New Zealand.

Qantas shares traded 0.5 percent lower at A$2.11 in mid-afternoon trade, outperforming a 1.3 percent fall for the broader market.

Joyce said Qantas would spend A$3.7 billion on fuel in 2010/11 (July/June), noting that additional fuel costs would not be recovered by the airline even after surcharges, hedging and fare hikes.

''If these (fuel) prices are sustained, next year's fuel bill will be hundreds of millions of dollars more,'' he said.

Qantas said its fuel bill for the second half of 2010/11 alone would be A$2 billion.

The airline has also estimated that the recent disasters will hurt its earnings by A$140 million.

Many carriers have been steadily raising fares this year as $100-a-barrel oil threatens profits just as airlines are recovering from the global credit crisis.

Tuesday, April 19, 2011

Gov’t seen still unable to enforce international aviation standards

Business World
April 18, 2011 11:14:55 PM

THE GOVERNMENT is believed to be still unable to enforce international standards for civil aviation due to inadequate staffing of the regulator, infrastructure, aircraft checking and data systems, risk consultancy Pacific Strategies and Assessments (PSA) said ahead of the country’s plans to invite foreign auditors before the year ends.

Results of the 48-page PSA study, said to be commissioned by "a consortium of foreign investors," could mean that the Philippines will fail an international audit eyed for this year, the consultancy’s business intelligence director, Peter Troilo, said in a phone interview last Sunday.

The study, completed last month, listed several problems that have been observed to persist despite state efforts to address earlier international downgrades.

‘Ill-prepared’

The first point dealt with the Civil Aviation Authority of the Philippines (CAAP) which was deemed to be "drastically underfunded, understaffed and ill-equipped to comply with international civil authority standards."

As such, this oversight regime is "ill-prepared and enforce international civil aviation standards," PSA said.

"The country’s damaging ‘brain drain’ phenomenon has also had a negative impact...Every year CAAP loses approximately 60 check pilots and safety inspectors, 1,200 aircraft mechanics and 200 general aircraft specialists," PSA claimed.

The study also noted how an audit by the International Civil Aviation Organization (ICAO) was indefinitely postponed in December last year due to reorganization in the CAAP.

This, after several foreign bodies gave low marks to the Philippine government’s safety readiness and thus limited the operations of Philippine carriers abroad.

The US Federal Aviation Authority (FAA) issued a low rating for the Philippine aviation sector due to policies that are below international standards and lack of qualified safety personnel.

The FAA downgraded the Philippines to "category 2" from "category 1" in 2008 after a safety audit in November 2007, preventing Philippine carriers from expanding operations in the US.

PSA noted in its report that category 2 means that CAAP "does not provide safety oversight of its air carrier operators in accordance with the minimum safety oversight standards established by ICAO."

ICAO had designated the country as a "significant safety concern" in December 2009.

The European Union (EU) also blacklisted the Philippines in April last year.

Deficiencies

The PSA study went on to note that Philippine air traffic management systems and navigational aids are "substandard and antiquated," while runway construction and preservation were "poor."

"The CAAP Employees Union claims that over 90% of the navigational aids used at the country’s airports are unreliable and prone to malfunctioning due to negligence and poor maintenance," PSA claimed, noting that more than half have reportedly reached their 15-year serviceable life and are already due for replacement.

"[And] there have been multiple reports of damaged runway asphalt and other forms of runway deterioration...," it added without elaborating.

In addition, the study noted "major practical...deficiencies in aircraft care and maintenance."

The same study had also found wanting government enforcement for tracking aircraft parts to ensure they are genuine and of high quality.

Finally, the study pointed to "insufficient" data systems on errors, incidents and accidents.

"CAAP has not implemented or enforced information sharing or reporting systems or protocols...," PSA claimed.

"There is significant risk that CAAP will fail at the next audit," Mr. Troilo said in the telephone interview.

The government plans to invite an FAA team by September to conduct an audit, earlier reports show. ICAO and the EU were said to be up for invitation after the FAA audit.

The audits will be done in hopes of obtaining a rating upgrade, which will allow local airlines to expand operations -- adding locations and frequencies of flights -- in the US or in Europe.

"CAAP has claimed that it has fixed a number of issues raised against it, so it is possible that they [sic] will pass," Mr. Troilo said.

"However, without major overhauls, it is certainly at risk at failing the next ICAO audit, and others."

‘The issue is economics’

Sought for comment, the CAAP said it is hard at work laying down improvements.

"We are being helped by consultants and former FAA auditors. They are guiding us," CAAP Director-General Ramon S. Gutierrez said in a telephone interview yesterday.

The September target for an audit may move, depending on the government’s preparedness, Mr. Gutierrez said, "but still [CAAP is] looking at [having one] by yearend hopefully".

Sought for comment on the PSA’s identified problems regarding staffing, infrastructure, checking mechanisms and data systems, Mr. Gutierrez only pointed to the issue of funding.

"The issue is economics," he said in a text message. -- Kathleen A. Martin with a report from A. M. G. Roa 

Malaysian plane struck by birds?

Business Mirror
Monday, 18 April 2011 21:20   Recto Mercene / Reporter

AN apparent bird strike broke the windshield of Malaysian Airlines Flight MH086, forcing it to divert to the Ninoy Aquino International Airport (Naia), landing at 6 p.m. on Saturday.

No one was reported hurt among the 137 passengers and cockpit crew, including 117 Taiwanese, according to the Civil Aviation Authority of the Philippines (Caap).

The airplane, a B737-800, came from Kota Kinabalu, eastern Malaysia, bound for Kaohsiung, Taiwan, when the pilot reported “a minor collision with an unidentified object.”

Air-traffic controllers reported that Flight MH086 requested to be diverted to the Naia while cruising at about 31,000 feet over the Visayas at a speed of about 500 mph.

“Request to be diverted to Manila due to a cracked window,” the pilot was reported as saying while flying over Puerto Princesa, Palawan, on the way to Kaohsiung.

The pilot did not make it clear whether the strike occurred at 31,000 feet or when he was still at a lower altitude, according to Director General Ramon Gutierrez of the Caap.

However, the latest report obtained by the BusinessMirror from aviation sources said the Malaysian airplane encountered the still-unidentified object while climbing to its assigned altitude while over the airspace of Bangkok, Thailand

It was only when the pilot reached its cruising altitude of 31,000 feet over Palawan that the cockpit window started to break, sources said.

The 137 passengers spent a night at a hotel in Manila, and were visited by Donald Lee, Taiwan’s representative to the Philippines.

Most birds fly below 500 feet, except during migration. When migrating, however, birds often climb to relatively great heights.

Generally, long-distance migrants seem to start out at about 5,000 feet and then progressively climb to around 20,000 feet.

Just like jet planes, the optimum cruise altitude of migrant birds increases as their “fuel” is used up and their weight declines.

“The greatest altitude documented as of the mid-1980s was a Ruppell’s griffon, an African vulture, struck by an airliner at 37,000 feet.”

The highest-flying bird is the bar-headed goose which flies 25,000 feet above the ground.

In the Philippines Capt. Sonny Jose, a former Philippine Airlines A330 pilot said he saw an eagle at 15,000 over Mount Banahaw while flying from Australia to Manila.

He said a B737 usually has a cruising altitude of 41,000 feet and speed of 500 mph.

However, he said the Malaysian plane was probably at a lower altitude when he encountered what could possibly be a migrating bird.

Rey Aguinaldo, Environment and Natural Resources, National Capital Region division chief and project officer of the Las Piñas-Parañaque Bird Sanctuary, said in the Philippines it is common to encounter migratory birds flying from 10,000 and 15,000 feet.

He said ducks and geese are known to fly at altitudes of between 15,000 to 20,000 feet, while eagles, vultures and hawks fly at 25,000 feet.

Reports said the passengers were shaken by the incident but none of them were injured, according to Lee, of the Taiwan Economic Cooperation Office.

One passenger was quoted as saying that during the flight, he felt pain in his ears when the cabin pressure dropped. Shortly after that, he recalled, a crew member broadcast that there had been a minor accident and that the cockpit’s glass had cracks.
 There was great anxiety among the passengers but there was no panic.

Officials at the Naia could not exactly say whether the crack was temporarily repaired by a sealant, for eventual replacement of windshield in Taiwan.

Flight MH086 left the Naia at 4 p.m. on Sunday.

Reciprocity should be key aspect of EO 29

02:17:26 (Mla time) April 18, 2011 
Lance Y. Gokongwei
Philippine Daily Inquirer

WE HAVE always been supportive of Aviation liberalization including “open skies” agreements with other countries. Why wouldn’t we be? We were a major beneficiary of domestic aviation de-regulation. And we have never been shy telling media about our support for a liberalized aviation industry.

But a few weeks ago, we broke corporate tradition at Cebu Pacific, and went public with our concern over the lack of reciprocity under EO 29. It was a first in CEB’s 15-year history.
We decided to come out and engage the issue constructively so there would be a better understanding of why reciprocity based on equal opportunity is extremely important not just to Cebu Pacific but also to the public in general.

We agree with the objective of EO 29 to bring in more tourists. It is posited that if foreign carriers are allowed to compete and freely fly to the Philippines the tourists would come.
There are two key aspects introduced in EO 29: increased competition and unlimited access to our skies by foreign carriers. We have no issues with these.

We would like to add a third aspect: reciprocity. We would like to be part of this competition. If foreign carriers are given unlimited access on routes to and from the Philippines, we believe it is only fair, that CEB and other local airlines be given unlimited access to and from the Philippines to these carriers’ home countries, on an equal opportunity of access; on a level playing field.

Reciprocity will keep all airlines on their toes and allow Filipino carriers like CEB to compete with foreign carriers. Ultimately, more competition leads to lower fares, benefiting not only CEB but the whole tourism industry, here and abroad.

We are very proud to say that Cebu Pacific’s low fares played a major role in spurring growth in tourism as shown by the 127 percent growth in domestic tourism in the last five years. From 7.3 million in 2006 to 16.6 million passengers in 2010.

International tourism from the markets we serve has grown much faster than from the markets we do not fly to. Last year alone we grew our International traffic by 39 percent. That’s 2.2 million passengers in 2010 alone.

Further examination of the data will prove the case. In 2005, a year before we started flying CEB planes to Singapore, tourist arrivals were estimated at 69,435. Since we introduced lower fares to Singapore in 2006, that rate has grown by 74 percent, resulting in 121,083 tourist arrivals from Singapore last year.

Perhaps, at the risk of sounding immodest, these facts show we have championed tourism and will continue to do so wherever we are allowed to fly and compete.

Examples of lack of reciprocity


Now, let me cite a few examples of the consequences of non-reciprocity:

Seat limitations skewed to favor foreign carriers over local carriers. The existing agreement between the Philippines and Hong Kong limits local carriers to only 2,500 seats per week on the Hong Kong-Cebu route; Hong Kong carriers get the same number. Under EO 29, Philippine carriers will still be limited to 2,500 per week but all Hong Kong carriers can now fly this route without any limit.

Exhaustion of air rights in major destinations and routes.

An early EO in 2008 declaring “open skies” sans reciprocity in Clark resulted in Hong Kong Express flying into Clark without limitations. CEB was unable to compete because air rights to Hong Kong were fully utilized at that time. CEB could not use Clark unless it reduced its HK services from Cebu. This was solved only after subsequent bilateral air talks resulted in additional air rights. This undue delay in CEB’s ability to compete with a foreign carrier should not have happened if reciprocity was in place. CEB has been flying to HK everyday since and offering the lowest fares out of Clark.

Inability to offer lower fares to potential high yield tourist markets. Japan has always been considered a major tourism market. Currently CEB flies to Osaka three times weekly. We have been asking for additional flights to Osaka which the Philippines is entitled to under the current Philippine-Japan Air Services Agreement. However our request, to this day, has not been approved. In the meantime, All Nippon Airways (ANA) was recently allowed to come in and operate flights from Tokyo to Manila under the very same Air Services Agreement. This is another example of the lack of reciprocity.

Example where reciprocity worked

A notable success story that we think we can build on and use as model is Korea:

In 2007, the Philippines negotiated a new air services agreement with South Korea, raising the capacity limit for each country to 19,000 seats a week almost a three-fold jump from the previous limit of 6,800.

As a result, today, we compete with Korean carriers on Incheon and Busan routes, and airlines such as Korean Air, Asiana, Air Busan, and Jeju Air are adding flights into the Philippines. Korea today is the country’s No. 1 source of tourists.

Moving forward

We propose that we move on these three fronts to realize quick wins:

Japan open skies—Japan had signed open skies agreements this year with Singapore, Malaysia, and South Korea; and with the US late last year. It took their respective governments an average of just more than a month to finalize these agreements. Japan is open to more such agreements with ASEAN and this presents an opportunity the Philippines must grab quickly.

Asean open skies—There are currently efforts to have an Asean Open Skies regime but the Philippines and Indonesia remain as holdouts. If we sign this, the region will be open to each country’s carriers on an equal footing. This is a regional effort which I think will work better than a unilateral approach.

Middle East and Europe open skies—We also support reciprocal open skies agreements with regions like the Middle East and Europe where Philippine carriers don’t fly to today provided of course we can, if and when we are ready.

CEB position

Let me just quickly repeat our position:

We welcome and support EO 29, the opening of all Philippine airports, except Manila, to all foreign carriers. However, we would like, to also be given the opportunity to compete with these foreign carriers on those same routes, and offer our trademark low fares not only to their nationals/tourists but to our own OFWs as well who live or work there. This is reciprocity and is most fair.

EO29 also offers to foreign carriers unlimited ‘fifth freedom rights’. We have no issue with this provided their governments allow us the same opportunity. We believe the requested reciprocity can be accommodated in EO 29’s implementing rules and regulations.

We are not asking for special favors. We became the Philippines’ largest National Flag Carrier without any. We have invested heavily in the country, employ more than 4,000 Filipinos and we have given every Juan the opportunity to fly with our low fares. All we ask for is the opportunity to compete on a level playing field.

Let us have Open Skies for all, not Open Skies for foreign airlines and Closed Skies for Filipino carriers.

(Gokongwei, president of Cebu Pacific, made this statement in a recent forum.)

Monday, April 18, 2011

International flight passengers increase

Business World
April 17, 2011 11:07:36 PM

PASSENGERS on international flights going through the country increased by 12.42% to 14.013 million last year from 12.465 million in 2009, with those leaving the country outnumbering the ones incoming, data the Civil Aeronautics Board (CAB) released over the weekend showed.

Outgoing passengers totaled 7.08 million last year, up 11.8% from 6.33 million in 2009.

In comparison, incoming passengers increased by 13.06% to 6.93 million from 6.13 million in the same comparative years.

CAB officials could not be immediately reached for comment.

Philippine Airlines (PAL) accounted for the biggest bulk of passengers -- 28.07% -- last year at 3.93 million, up 15.8% from 3.39 million in 2009.

"Improved passenger numbers is a welcome development. It signifies slow recovery of travel sector," PAL Spokesperson Cielo C. Villaluna said via text yesterday.

However, Ms. Villaluna cautioned that growth in the carrier’s passengers may be threatened by currently volatile fuel prices, the airline’s ongoing labor dispute and the crisis in Japan.

Budget carrier Cebu Air, Inc., on the other hand, accounted for 14.73% with 2.0634 million last year, a 26.93% increase from 1.63 million in 2009.

"Twenty-ten was really a good year for [Cebu Air]. We added a lot of international flights in 2010 and we also offered a lot of low rates to encourage travel," Candice A. Iyog, Cebu Air vice-president for marketing and distribution, said in a separate telephone interview yesterday.

Cathay Pacific Airways, meanwhile, accounted for the third biggest passenger complement at 9.58% with 1.34 million last year.

But that total was a 2.82% dip from the 1.38 million passengers recorded in 2009.

Singapore Airlines was fourth with 659,452 passengers last year, up 15.46% from 571,151 in 2009.

In terms of domestic flights, data CAB released in February showed that the number of passengers increased 12.27% to 16.56 million last year from 14.75 million in 2009.

The growth was attributed by CAB to stronger domestic tourism and greater price competition among airlines. -- K. A. Martin

Pilot in Pope’s first visit sets the record straight

Philippine Daily Inquirer
First Posted 21:48:00 04/17/2011

IN AN article on Pope John Paul II’s first visit to the Philippines (Inquirer, 2/20/11), Rolando Luna claimed that he piloted the papal plane to various parts of our country. Several pilots, mostly retired, have asked me to say publicly that Luna’s claim is inaccurate. Records show I was the “aircraft commander” of the papal plane.

 It was on Feb. 18, 1981 that the PAL vice president for flight operations designated me as such. I was given the flight information folder which named the cockpit crew and cabin crew, together with the back-up aircraft with its own cockpit and cabin crew. Listed were the VIP passengers on board. I was provided the complete route of the flight, weather forecast and temperature.

 At no time did Luna ever serve as pilot of the papal plane. I did, from start to finish. My co-pilot was First Officer Virgilio Ochan.

 Inside the plane, before takeoff, Philippine Airlines chair and president Roman Cruz introduced me to the Pope as pilot of the papal plane for the entire visit. I, in turn, introduced my crew members. When I was about to go to the cockpit, the Pope called me and whispered, “I am now totally in your hands.” I assured him, saying, “Your Holiness is in safe hands.”

 When the historic papal visit ended in Subic, his holiness kindly gave us a memento: a picture-taking with every crew member. To this day, all of us treasure these photos with the Pope.

 Print and broadcast media interviewed me when Pope John Paul II revisited the Philippines in 1995, and when he died. They came all the way to my residence in Toledo City, asking me to share with them my personal impressions of the Pope at close range.

Saturday, April 16, 2011

Singapore Airlines raises fuel fee as crude jumps

Associated Press, Singapore | Fri, 04/15/2011 5:21 PM | Business

Singapore Airlines Ltd. says it will raise fuel surcharges for its flights after jet fuel prices increased more than 30 percent since the beginning of the year.

The airline said in a statement Friday that passengers issued tickets on or after April 21 will be charged up to an additional $32.

The airline said the new fee will partially offset higher operating costs from rising fuel prices.

The airline has increased fuel levies several times during the last year as crude oil jumped to above $110 a barrel this week from $70 last summer. It last raised its fuel surcharges by up to $26 per ticket on March 9.

Singapore Airlines is the world's second-largest carrier by market capitalization.

Singapore Airlines raises fuel fee as crude jumps

Associated Press, Singapore | Fri, 04/15/2011 5:21 PM | Business

Singapore Airlines Ltd. says it will raise fuel surcharges for its flights after jet fuel prices increased more than 30 percent since the beginning of the year.

The airline said in a statement Friday that passengers issued tickets on or after April 21 will be charged up to an additional $32.

The airline said the new fee will partially offset higher operating costs from rising fuel prices.

The airline has increased fuel levies several times during the last year as crude oil jumped to above $110 a barrel this week from $70 last summer. It last raised its fuel surcharges by up to $26 per ticket on March 9.

Singapore Airlines is the world's second-largest carrier by market capitalization.

Friday, April 15, 2011

Draft ‘open skies’ rules seek to address reciprocity

Business World
April 14, 2011 11:11:53 PM

DRAFT RULES implementing the "pocket open skies" policy seek to appease local carriers’ concerns regarding reciprocity but also maintain that national interest will be paramount in setting air services deals.

Reciprocity, in this context, refers to local carriers being granted the same air rights the Philippines allows foreign airlines. The proposed implementing rules and regulations (IRR) in this case gives the foreign carriers’ home states one year to approve identical privileges.

"The [Civil Aeronautics] Board, in case of failure to reach mutual agreement to grant reciprocal rights to Philippine carriers within 12 months from the grant ... may revoke the said grant," the draft IRR states.

The rules, however, also state that operations without reciprocal rights can be allowed if the board "deems it to promote national interest and/or mutual benefits."

Candice A. Iyog, Cebu Air, Inc. vice-president for marketing and distribution, said that the draft IRR was not enough.

"It does not address the need for reciprocity ... we will raise all our concerns next week during the hearing scheduled for the [draft IRR]," Ms. Iyog said.

An April 19 public hearing has been scheduled.

Ms. Iyog said the airline was consistent in its support for the "pocket open skies" policy and in also demanding "equal opportunity".

"All we’re asking for is the opportunity to compete. If it’s not granted, we will not be able to be in the position to compete with these airlines without the rights to fly in their country while foreign carriers can fly freely to the Philippines," she said.

Concurring, Philippine Airlines spokesperson Cielo C. Villaluna said, "We welcome the fact that the government recognizes need for reciprocity in air rights negotiations. However, what is in the national interest may be susceptible to varying interpretations".

"As such, PAL has always maintained that in all negotiations, all stakeholders like airlines, the travel and tourism sector, and others must be consulted as to what is in the best interest of all," she added.

President Benigno S. C. Aquino III last month ordered the further opening of Philippine skies to foreign airlines in the aim of promoting investments and trade and providing travelers more choices.

Two executive orders (EOs) were issued by Malacañang: EO 29 authorizing the Civil Aeronautics Board and negotiators to "pursue more aggressively the international civil aviation liberalization policy" and EO 28 which again splits the country’s negotiating panel into two.

Carriers were demoted to being observers in air service agreement negotiations, prompting the Fair Trade Alliance (FTA) yesterday to call for their reinstatement.

"It’s important that the representatives of the local carriers are there ... If the representatives are there, reciprocity will be ensured," FTA senior program officer Ember R. Cruz said in a briefing.

They called for a review of EOs 28 and 29 but Palace spokesperson Ricky A. Carandang said "We are not likely to revise." -- K. A. Martin with A. M. G. Roa

Malaysia's AirAsia says Q1 load factor at 81 pct

ATN - April 14th, 2011 - Category: Business

KUALA LUMPUR, Malaysia – Malaysian budget carrier AirAsia said it filled 81 percent of the space available for passengers in the first quarter, up seven percentage points from a year earlier, with high oil prices not having an impact on forward sales, its chief executive said on Wednesday.

“It’s been a good first quarter,” said Tony Fernandes.

“We have not seen any slow (down) in demand. In terms of the second quarter this year versus the second quarter last year, the forward sales still look quite strong,” he told reporters at the sidelines of the annual Invest Malaysia conference.

Fernandes also said Asia’s largest budget carrier by fleet size was on track to list its Thai and Indonesian units in the fourth quarter of 2011.

“They may list at the same time because they are reaching out to different sources of capital,” he said.

Asked if AirAsia planned to impose a fuel surcharge to offset high oil prices, he said: “Not at the moment (but) we’re not far away from where we have to put one (surcharge) in.”

Brent crude rebounded to above $122 on Wednesday, halting a two-day decline, on fears that the Libya conflict could settle into a bloody stalemate, while a sudden disruption in Kuwaiti oil exports boosted sentiment.

Open skies or bust?

Updated April 14, 2011 12:00 AM
SPY BITS By Babe Romualdez
Philippines Star

No one will argue that there are a lot of advantages to tourism if we have an “open skies” policy, but the big question is: Are we ready for it? Recently, the Ninoy Aquino International Airport (NAIA) terminal 1 was voted as one of the worst airports in the world by the website “The Guide to Sleeping in Airports”, with travelers describing it in such uncomplimentary terms as worse than a cattle yard. If a big airport like New York’s John F. Kennedy airport has a hard time accommodating big jets (like what happened a couple of days ago when an Air France A380 jumbo jet collided with a much smaller Delta Comair Bombardier CRJ-700), imagine what worse things could happen in our airports? The French airplane was taxiing on the runway for takeoff to Paris when its left wing clipped the Comair aircraft which has just landed from Boston – making the smaller plane look like a toy as it spun by almost 90 degrees.

Although both aircraft sustained some damage, fortunately no one was hurt. The accident however focuses attention once more on the difficulty of airports in handling a new class of giant planes. Just imagine what bedlam and commotion could happen at the Ninoy Aquino International Airport if we open our skies to large aircraft like the Airbus 380 or the new Boeing 747-8. Fortunately (or unfortunately), it might take several decades more before our airports can be upgraded to accommodate new generation planes – but maybe Clark International Airport in Pampanga would be a good candidate. But then again is the transport system to and from Clark ready?

Breezing through Hawaiian Air

While Air France passengers were nearly scared out of their wits due to the collision at JFK, passengers of Hawaiian Airlines will be pleasantly surprised at the redesigned ticket lobbies that can totally make one “breeze through” the check in process. The new self-service stations will do away with lengthy lines and other hassles associated with luggage weigh-ins, tagging and obtaining of boarding passes since a passenger can check himself in for any interisland, mainland or international flight through the use of state-of-the-art technology that completes the entire process in no time at all. Passengers can place checked-in luggage straight into the single conveyor belt for USDA inspection, TSA screening and loading.

And if anyone wants an upgrade or other services, they can settle the fees right there and then especially with the presence of Hawaiian Airline’s customer service agents for further assistance. Definitely, the revolutionary process takes away a lot of the hassles in traveling. We were told that this breezy innovation was a result of two years of study and research on the part of the airline – which hopefully our local airlines can soon replicate for passengers.

Kingdom’s $200-million investment

Despite the turmoil that’s beginning to spread like an epidemic in the Arab world, a lot of Filipinos are heartened to note that relations between the Philippines and Middle Eastern countries like Saudi Arabia continue to be strong. This was evident during the recent visit of Vice President Jejomar Binay to the office of Saudi Prince Alwaleed’s Kingdom Holding Company where VP Binay was warmly received. The discussion centered on investment issues and the strengthening of bilateral economic relations between the two countries.

Prince Alwaleed has solid investments in the Philippines, among them the $200-million project to construct the Raffles Residences in the heart of Makati’s business district. The project, which is a joint venture between Kingdom Hotel Investments and Ayala Land, consists of a 279-room Fairmont Hotel, a 30-suite Raffles Hotel and 236 Raffles branded private residences, with both hotels expected to open by 2012. We were told that some 1,600 workers have been employed for the project, and off-plan residential sales have reached over $75 million to date with some 75 percent of the units already sold.  It can also be recalled that Saudi Arabia also made a generous donation for medical aid to the victims of typhoon Ondoy in 2009.

Smart options

The incessant increase in oil prices is energizing public officials into thinking of “smart” options to alleviate the plight of poor Filipinos, like the bidding out of “Smart cards” (so-called because of an embedded chip containing a microprocessor) to give fuel subsidies to jeepney and tricycle operators. The Department of Agriculture followed suit, drawing up a database of potential beneficiaries from the farming and fishery sector for the government fuel subsidy program. But as usual, a lot of discussion is now being devoted to the implementing rules and regulations, with several sectors also questioning the procurement process and the criteria in determining the beneficiaries.

One other smart option worth looking into is the huge investment made by Smartmatic for research and development centers in Taiwan and Panama worth $60 million over the next five years. According to sources, the company’s expansion plans in the global market are geared towards technological solutions not only in the area of elections but in identity management and “Smart Cities.” The Smart Cities component incorporates security applications for critical-mission projects for governments, such as public safety platforms, public transport systems, emergency management solutions and even census/data gathering programs – essential areas that can help improve people’s quality of life.

 Spy Bits sources said the choice of Panama was due to the country’s geographic advantage especially with its accessibility to both the Atlantic and the Pacific, while the extraordinary boom in Taiwan’s tech industries and the abundance of talented people in the electronics field made it very attractive. But aren’t a lot of workers in Taiwan Filipinos?

‘Open skies’ draft IRR skirts reciprocity rule

First Posted 21:32:00 04/14/2011
By Paolo Montecillo
Philippine Daily Inquirer

MANILA, Philippines—Ignoring calls made by the country’s top carriers, the government said it would allow foreign airlines to fly to the Philippines under the new “open skies” policy, even if it would not be reciprocated by the host countries of those airlines.

While it is still a priority, reciprocity of air rights for local carries will not be a requirement in allowing foreign airlines to mount more flights to the Philippines, the new implementing rules and regulations (IRR) for Executive Order No. 29 showed.

Signed earlier this year, EO 29 liberalizes the air rights regime in the country.

Under the new rules, foreign carriers that wish to mount flights to the Philippines may apply for new air rights that are over and above existing Air Service Agreements, which are bilateral deals that impose specific limits on the number of flights between two countries.

This is meant to allow more foreigners to travel to the Philippines, and in the process, help develop the country’s tourism sector and boost economic activity in far-flung areas.

Airports in Metro Manila are not covered by the “open skies” order.

A condition in the new rules states, “Such inclusion shall include the reciprocal grant to Philippine carriers of equivalent traffic rights” by the respective home countries of foreign airlines.

“The board reserves the right to revoke, suspend or restrict operations hereby granted in the event that the state of registry of the foreign carrier... failed to extend equal opportunity to Philippine carriers,” the rules made by the Civil Aeronautics Board (CAB) said.

“(But) the board may continue to allow operations of traffic rights... if the board deems that it promotes national interest and mutual benefits,” it added.

Earlier, local carriers’ Cebu Pacific and Philippine Airlines (PAL) called on the government to protect the country’s air travel industry by making sure that local carriers get the same air rights that foreign airlines will get.

However, business groups have said the fate of local carriers should not be the government’s concern, noting that liberalizing air rights would bring in much-needed investments into the country and increase competition in the industry.

Malaysia's AirAsia says Q1 load factor at 81 pct

Apr-14-11 8:01pm
Written by anytimesnews
Zimbio

KUALA LUMPUR, Malaysia – Malaysian budget carrier AirAsia said it filled 81 percent of the space available for passengers in the first quarter, up seven percentage points from a year earlier, with high oil prices not having an impact on forward sales, its chief executive said on Wednesday.

“It’s been a good first quarter,” said Tony Fernandes.

“We have not seen any slow (down) in demand. In terms of the second quarter this year versus the second quarter last year, the forward sales still look quite strong,” he told reporters at the sidelines of the annual Invest Malaysia conference.

Fernandes also said Asia’s largest budget carrier by fleet size was on track to list its Thai and Indonesian units in the fourth quarter of 2011.

“They may list at the same time because they are reaching out to different sources of capital,” he said.

Asked if AirAsia planned to impose a fuel surcharge to offset high oil prices, he said: “Not at the moment (but) we’re not far away from where we have to put one (surcharge) in.”

Brent crude rebounded to above $122 on Wednesday, halting a two-day decline, on fears that the Libya conflict could settle into a bloody stalemate, while a sudden disruption in Kuwaiti oil exports boosted sentiment.

Malaysia's AirAsia says Q1 load factor at 81 pct

ATN - April 14th, 2011 - Category: Business

KUALA LUMPUR, Malaysia – Malaysian budget carrier AirAsia said it filled 81 percent of the space available for passengers in the first quarter, up seven percentage points from a year earlier, with high oil prices not having an impact on forward sales, its chief executive said on Wednesday.

“It’s been a good first quarter,” said Tony Fernandes.

“We have not seen any slow (down) in demand. In terms of the second quarter this year versus the second quarter last year, the forward sales still look quite strong,” he told reporters at the sidelines of the annual Invest Malaysia conference.

Fernandes also said Asia’s largest budget carrier by fleet size was on track to list its Thai and Indonesian units in the fourth quarter of 2011.

“They may list at the same time because they are reaching out to different sources of capital,” he said.

Asked if AirAsia planned to impose a fuel surcharge to offset high oil prices, he said: “Not at the moment (but) we’re not far away from where we have to put one (surcharge) in.”

Brent crude rebounded to above $122 on Wednesday, halting a two-day decline, on fears that the Libya conflict could settle into a bloody stalemate, while a sudden disruption in Kuwaiti oil exports boosted sentiment.

Malaysia's AirAsia says Q1 load factor at 81 pct

ATN
April 14, 2011

KUALA LUMPUR, Malaysia – Malaysian budget carrier AirAsia said it filled 81 percent of the space available for passengers in the first quarter, up seven percentage points from a year earlier, with high oil prices not having an impact on forward sales, its chief executive said on Wednesday.

“It’s been a good first quarter,” said Tony Fernandes.

“We have not seen any slow (down) in demand. In terms of the second quarter this year versus the second quarter last year, the forward sales still look quite strong,” he told reporters at the sidelines of the annual Invest Malaysia conference.

Fernandes also said Asia’s largest budget carrier by fleet size was on track to list its Thai and Indonesian units in the fourth quarter of 2011.

“They may list at the same time because they are reaching out to different sources of capital,” he said.

Asked if AirAsia planned to impose a fuel surcharge to offset high oil prices, he said: “Not at the moment (but) we’re not far away from where we have to put one (surcharge) in.”

Brent crude rebounded to above $122 on Wednesday, halting a two-day decline, on fears that the Libya conflict could settle into a bloody stalemate, while a sudden disruption in Kuwaiti oil exports boosted sentiment.

http://www.anytimesnews.com/2011/04/14/malaysias-airasia-says-q1-load-factor-at-81-pct

Thursday, April 14, 2011

Cathay Pacific orders 15 Airbus A330-300s

April 13, 2011, 3:47pm
Manila Bulletin

Cathay Pacific orders 15 Airbus A330-300s

MANILA, Philippines -- Cathay Pacific Airways has placed its ninth order for A330-300s in March for 15 more aircraft, which together with its subsidiary Dragonair brings the company’s total orders for the type up to 54.

The airline is Airbus’ largest A330 customer and operator with a fleet of 46 in service and a further 21 to be delivered.

Airbus’ monthly orders and deliveries report reveals that total orders for the A330-300, the larger version of the world’s most popular mid-sized wide-body, soared past the 500 order mark following an order from Cathay Pacific Airways.

In the past three years alone, the A330 has attracted 27 new operators proving that the aircraft’s versatility, reliability and efficiency remain unequalled and continue to be the winning combination in the medium to long-haul market.

Airbus said the wide market appeal of the A330 is demonstrated daily by over 90 operators, including network carriers, low cost, charter and flag carriers, who fly A330s on all missions from 30 minutes to over 14 hours, with one taking off every minute of every day.

More than 860 million passengers have enjoyed travelling on board the light, bright and spacious A330 cabin to and from the 300 airports it serves today.

With a true wide-body fuselage allowing very high comfort standards, the A330-300 is able to accommodate seat and class configurations to suit diverse customer requirements.

It has a range of up to 10,400 km with a typical 300 passenger load. Highly efficient and optimised for the medium “to long range market, the A330-300 offers the best balance between range and cost.’’

The A330-300 remains the most economic means of flying 300 or so passengers on medium range routes in true long haul comfort. Orders for the A330-300 stand at 511. (EHL)

Monday, April 11, 2011

Jazeera Airways expected to fly to Cairo in May

Mon Apr 11, 2011 11:00am GMT
Reuters
By Ahmed Hagagy

KUWAIT (Reuters) - Kuwait's low-cost carrier Jazeera Airways is expected to start flights to Egypt's capital in May and post a profit this year, the firm's chairman said.

Jazeera Airways, which posted a net loss of 2.8 million dinars in 2010, swung to net profit of 2 million dinars in the fourth quarter.

"The firm aims at posting profit in each quarter of 2011," chairman Marwan Boodai told Reuters in an interview.

The carrier, which aims to fly 82 routes in the Middle East within the next five years, won approval this week from the Egyptian Civil Aviation Authority to start flights to Cairo, a long-awaited move.

"We were deprived for years from operating flights to Cairo airport, which is considered one of the most important regional destinations," Boodai said.

The carrier, which competes with United Arab Emirates-based Air Arabia and Dubai-based low cost carrier flydubai, is seeking approval from Saudi authorities to operate flights within the kingdom.

Last week, the Shura Council, an advisory council, called for a study on allowing Gulf airlines to fly domestic routes in the biggest Arab economy as its national carrier struggles to meet demand.

Currently, Saudi Airlines and low-cost carrier Nationall Air Services serve a domestic market of around 27 million people.

Boodai said that the carrier eyed a market share of up to 15 percent in 2011, adding that in 2012 the picture would change with Jazeera expanding its fleet.

Jazeera said last week that it would receive four new Airbus A320s between 2012 and 2014. The firm has 11 A320s in operation.

Jazeera was back to normal operations in Egypt, Lebanon and Bahrain, despite political unrest, Boodai said.

The Arab world has been rocked by a wave of pro-democracy protests which toppled Egypt's and Tunisia's leaders and sparked demonstrations in Bahrain, Kuwait, Oman and Saudi Arabia.

Qatar Airways unveils its biggest promotion ever

Manila Bulletin
April 10, 2011, 1:56pm

QATAR -- Taking the level of excitement to new heights, Qatar Airways has unveiled the long-awaited highlight of its 100th destination launch campaign a ‘two for the price of one’ ticket offer marking the biggest promotion in its 14-year history.

The Doha-based carrier has reached the historic milestone of 100 destinations last April 6 with the start of flights to the Syrian City of Aleppo.

Customers from around the world can book two tickets for the price of one on qatarairways.com/100. Terms & conditions apply. Bookings are based on the time zone they are booking from.

This never-seen-before Qatar Airways offer is valid for travel between 1st May 2011 and 10th June 2011, with travel to be completed by 11th June 2011.

Qatar Airways Chief Executive Office Akbar Al Baker said: “The launch of our 100th destination is a great milestone in the success story of Qatar Airways. Since our re-launch just over 14 years ago, the airline has grown from strength to strength at a phenomenal pace, and this remarkable achievement of reaching 100 destinations would not have been possible without the loyal support of our customers, who have supported our business over the years.

“Our 100th destination launch is a perfect opportunity to say ‘thank you’ to all our customers, valued partners, corporate and leisure travellers for making Qatar Airways their airline of choice.

“Through this amazing global promotion, we are pleased to give back and to share this historic moment with our customers. It is also a great way for those who have never flown with Qatar Airways before to try our service and see how our Five Star service sets us apart from others,” added Al Baker.

The fabulous offer is the ultimate highlight of an array of promotions for travellers around the world to celebrate Qatar Airways’ 100th destination launch.

In addition, to the ‘two for one’ offer, Qatar Airways is running an online competition until 16th April 2011 on qatarairways.com/100 for which customers may sign up for a chance to win one of 100 pairs of free tickets to any destination of their choice on Qatar Airways’ network. Customers have extra chances to win free tickets if they refer the offer to friends.

Sunday, April 10, 2011

Amadeus makes Singapore Airlines schedules available to travel agencies

Manila Bulletin
April 9, 2011, 2:53am

MANILA, Philippines – Amadeus, a leading travel technology partner and transaction processor for the global travel and tourism industry, recently announced that travel agencies worldwide using its platform will now have access to Singapore Airlines data.

The five-year agreement Amadeus signed with Singapore Airlines will allow them to distribute its flight schedules, fares, and other service information to all travel agencies and third party channels.

Amadeus Asia-Pacific president David Brett said they are delighted with the agreement they signed with the airline which it considers as one of the top international airlines.

“Amadeus is proud to partner with Singapore Airlines for their distribution and information technology needs. It is one of the most respected brands and a leading airline not just in Asia but globally,” Brett said.

Singapore Airlines flies four times daily to Manila giving travelers from the country increased connectivity to other international destinations.

Since starting its Philippine operations in 1997, Amadeus has become the leading service provider of travel agencies in the country. In the Asia-Pacific region, it services close to 20,000 travel agencies.

It has also been providing its technology to local airlines including Cebu Pacific Air, South East Asian Airlines, and Zest Airways Inc.

Amadeus has operations in 39 countries and markets in the Asia Pacific including Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

Friday, April 8, 2011

Cathay Pacific says has lifted Air China stake to 18.77 pct

Reuters
April 7, 2011

(Reuters) - Cathay Pacific Airways Ltd has slightly increased its stake in Air China Ltd , paying about HK$40 million ($5.15 million) for 5.48 million shares, a filing to the Hong Kong stock exchange showed on Thursday.

A Cathay spokeswoman on Thursday confirmed the acquisition and said Cathay's holding in Air China , the national flag carrier, had risen to 18.77 percent from 18.43 percent.

Hong Kong's dominant carrier, bought the Hong Kong-listed Air China shares, or H-shares, for an average HK$7.348 each, the filing said.

Cathay had said Air China was a good investment and it would increase its holding in the company.

Air China is a substantial shareholder of Cathay, owning nearly 30 percent as of the end of 2010, just behind that of Swire Pacific Ltd , which held about 43 percent of Cathay.

Shares in Cathay have fallen 10 percent this year, but have outperformed Air China, which dropped 16 percent in the same period. (Reporting by Alison Leung; Editing by Chris Lewis)

Thursday, April 7, 2011

CebuPac bats for reciprocity in ‘open skies’ policy adoption

Philippine Daily Inquirer
First Posted 21:22:00 04/05/2011
By Paolo Luis G. Montecillo

MANILA, Philippines—Gokongwei-led Cebu Pacific has called on the government to make good on its promise that the liberalization of the country’s air rights would not be skewed in favor of foreign airlines at the expense of local firms.

The company supports the government’s efforts to develop the local tourism sector, with an “open skies” regime as a key enabler and one of the drivers of economic growth, Cebu Pacific president and CEO Lance Gokongwei said in a speech on Tuesday.

But Gokongwei stressed the need for reciprocity in implementing an “open skies” policy. He urged the government to grant perks only to airlines from countries that do the same for carriers from the Philippines.

“We have always been supportive of aviation liberalization including ‘open skies’ agreements with other countries,” Gokongwei said.

Today, the number of flights between two countries depends on pre-determined limit agreed upon by two governments. With an “open skies” policy, foreign airlines will be allowed to fly to the Philippines as much as they want, with the only limit being airport space.

“We were a major beneficiary of domestic aviation deregulation, and we have never been shy about our support for a liberalized aviation industry,” he added.

However, he said the company had to break “corporate tradition” by expressing concern over the lack of reciprocity under Executive Order No. 29, which mandates the implementation of the liberalized rules.

“If foreign carriers are given unlimited access on routes to and from the Philippines, we believe it is only fair that Cebu Pacific and other local airlines be given unlimited access to and from the Philippines to these carriers’ home countries,” he said.

He said this would result in a more competitive but fair playing field that would translate to better services to consumers and lower fares.

Gokongwei noted that although the government had been more liberal in granting additional seat entitlements in the past few years, the lack of reciprocity had made it easier for foreign airlines to fly to the Philippines than it had for local firms to fly abroad.

For instance, requests by local airlines to mount additional flights to Japan have repeatedly been snubbed. But recently, All Nippon Airways was allowed to mount new direct flights to Tokyo.

Gokongwei said the Philippines should consider entering into a bilateral “open skies” regime with Japan, similar to what Malaysia and Indonesia have done.

He also called on the government to fast-track the signing of the multilateral “open skies” deal with other Southeast Asian nations. This deal seeks to include secondary airports in the region as the existing deal covers only main airports.

The government should also consider a similar deal with Middle Eastern countries and Europe, where no Philippine carrier currently flies.

The Makati Business Club (MBC) earlier said the government should ignore the pleas by local airlines. The “open skies” regime, said the group formerly led by now Tourism Secretary Alberto Lim, would attract additional investments in the country, outweighing the disadvantages enumerated by the local airlines.