Philippine Daily Inquirer
August 24, 2011
Airphil Express recently got itself a new 180-seater Airbus A320, increasing its fleet of this aircraft to seven.
The new Airbus A320 recently taxied into the Ninoy Aquino International airport from Toulouse, France, with the airline’s own pilots in command.
The additional aircraft will enable the airline to bring more customers to more destinations in a shorter time at an affordable price, said Alfredo Herrera, AirPhil SVP for marketing and sales.
“We aim to play a dominant role in the industry by bringing more tourists around the country while beefing up our presence in the region,” Herrera said.
Airphil Express has mapped out a $250-million expansion plan and is scheduled to purchase two more A320 units later in the year.
Apart from the seven Airbus A320, AirPhil Express also has three Q300s and five Q400.
Wednesday, August 24, 2011
Friday, August 19, 2011
Cathay Pacific beefs up fleet with 12 new Boeing aircraft
Manila Bulletin
August 19, 2011
MANILA, Philippines — Cathay Pacific Airways is continuing to make significant investments to modernize and grow its fleet with an agreement with Boeing Company to purchase four Boeing 777-300ER passenger aircraft and eight Boeing 777-200 Freighters.
The 12 new aircraft have a list price of about HK$25.6 billion but will be acquired at a considerable discount, as is the usual practice in such transactions.
The aircraft are expected to be delivered to the airline between 2013 and 2016 and will be powered by General Electric GE90 engines.
Cathay Pacific already operates 22 Boeing 777-300ERs on its key long-haul routes, and with the latest purchase will have another 28 on order for delivery up to 2015.
The airline plans to retire the older aircraft in its fleet, including 21 Boeing 747-400s and 13 Airbus A340-300s, before the end of the decade as it progressively takes delivery of new-generation aircraft that will provide much greater fuel and operating cost efficiencies.
The Boeing 777-200F is a new aircraft type for Cathay Pacific and will be used to grow the freighter fleet and at the same time replace older, less fuel-efficient Boeing 747-400BCF Converted Freighters. For a typical 3,000 nautical mile trip, the 777-200F will burn 15% and 24% less fuel per payload ton than the 747-400F and 747-400BCF respectively.
The new aircraft, which can fly 4,900 nautical miles with a full payload of 102 tons, will primarily be used on regional and European routes.
The airline is also taking delivery of 10 new Boeing 747-8 Freighters, with the first two now scheduled to arrive in late September and another three being delivered by the end of 2011. The 747-8s, with a payload of nearly 130 tonnes, will be used almost exclusively on routes between Hong Kong and North America.
Cathay Pacific currently has 21 wide-bodied freighters in its fleet, but two Boeing 747-400BCFs will be sold to the airline’s cargo joint venture with Air China, while one or two more will be dry-leased to all-cargo subsidiary Air Hong Kong. Following the arrival of the new purchases and the departure of the BCFs, Cathay Pacific’s freighter fleet will number up to 35 aircraft by 2016.
With the latest purchases, Cathay Pacific now has a total of 97 new aircraft, including 79 wide-body passenger and 18 freighter aircraft, on its books for delivery up to 2019. The value of these aircraft at list prices is almost HK$200 billion. These aircraft on firm order include: 28 Boeing 777-300ERs, 19 Airbus A330s, 32 Airbus A350-900s, 10 Boeing 747-8Fs and eight Boeing 777-200Fs.
August 19, 2011
MANILA, Philippines — Cathay Pacific Airways is continuing to make significant investments to modernize and grow its fleet with an agreement with Boeing Company to purchase four Boeing 777-300ER passenger aircraft and eight Boeing 777-200 Freighters.
The 12 new aircraft have a list price of about HK$25.6 billion but will be acquired at a considerable discount, as is the usual practice in such transactions.
The aircraft are expected to be delivered to the airline between 2013 and 2016 and will be powered by General Electric GE90 engines.
Cathay Pacific already operates 22 Boeing 777-300ERs on its key long-haul routes, and with the latest purchase will have another 28 on order for delivery up to 2015.
The airline plans to retire the older aircraft in its fleet, including 21 Boeing 747-400s and 13 Airbus A340-300s, before the end of the decade as it progressively takes delivery of new-generation aircraft that will provide much greater fuel and operating cost efficiencies.
The Boeing 777-200F is a new aircraft type for Cathay Pacific and will be used to grow the freighter fleet and at the same time replace older, less fuel-efficient Boeing 747-400BCF Converted Freighters. For a typical 3,000 nautical mile trip, the 777-200F will burn 15% and 24% less fuel per payload ton than the 747-400F and 747-400BCF respectively.
The new aircraft, which can fly 4,900 nautical miles with a full payload of 102 tons, will primarily be used on regional and European routes.
The airline is also taking delivery of 10 new Boeing 747-8 Freighters, with the first two now scheduled to arrive in late September and another three being delivered by the end of 2011. The 747-8s, with a payload of nearly 130 tonnes, will be used almost exclusively on routes between Hong Kong and North America.
Cathay Pacific currently has 21 wide-bodied freighters in its fleet, but two Boeing 747-400BCFs will be sold to the airline’s cargo joint venture with Air China, while one or two more will be dry-leased to all-cargo subsidiary Air Hong Kong. Following the arrival of the new purchases and the departure of the BCFs, Cathay Pacific’s freighter fleet will number up to 35 aircraft by 2016.
With the latest purchases, Cathay Pacific now has a total of 97 new aircraft, including 79 wide-body passenger and 18 freighter aircraft, on its books for delivery up to 2019. The value of these aircraft at list prices is almost HK$200 billion. These aircraft on firm order include: 28 Boeing 777-300ERs, 19 Airbus A330s, 32 Airbus A350-900s, 10 Boeing 747-8Fs and eight Boeing 777-200Fs.
Thursday, August 18, 2011
Qantas establishing two Asia airliness
Manila Bulletin
August 18, 2011
SYDNEY (Reuters) – Australia's Qantas Airways is setting up two new airlines in Asia and ordering $9 billion of new Airbus aircraft as part of a do-or-die makeover to salvage its loss-making international business.
Qantas will also cut 1,000 jobs in Australia as it shifts its focus to the world's fastest-growing aviation market, triggering threats by unions to block the move and a government pledge to scrutinize the plans.
Qantas, which has been reviewing its offshore operations to cut costs and unprofitable routes, said it will launch a new, premium Asian airline and a Japanese budget carrier, the latter jointly with Japan Airlines and Mitsubishi Corp.
The new airlines will fly Airbus A320 jets, cementing their reputation as the plane of choice on regional networks over archrival Boeing Co . Qantas plans to acquire up to 110 of them, worth more than $9.4 billion at list prices.
As Qantas rebases its loss-making international operations in Asia, it also plans to give up some of its long-haul routes and retire older planes as well as cut jobs.
''Right now 82 out of every 100 people flying out of Australia are choosing to fly with an airline other than Qantas, not including Jetstar,'' the airline's Irish-born chief executive, Alan Joyce, told a news conference.
Joyce has cut costs and jobs since taking the helm at Qantas in 2008, with growth increasingly focused on the budget offshoot Jetstar, which he ran before becoming chief executive.
''To do nothing, or tinker around the edges, would only guarantee the end of Qantas International in our home Australian market. That would be a tragedy,'' he said, adding that the international operation's cost base was around 20 percent higher than its major rivals.
Joyce said the new premium airline was expected to be launched next year with an initial fleet size of 11 A320s.
August 18, 2011
SYDNEY (Reuters) – Australia's Qantas Airways is setting up two new airlines in Asia and ordering $9 billion of new Airbus aircraft as part of a do-or-die makeover to salvage its loss-making international business.
Qantas will also cut 1,000 jobs in Australia as it shifts its focus to the world's fastest-growing aviation market, triggering threats by unions to block the move and a government pledge to scrutinize the plans.
Qantas, which has been reviewing its offshore operations to cut costs and unprofitable routes, said it will launch a new, premium Asian airline and a Japanese budget carrier, the latter jointly with Japan Airlines and Mitsubishi Corp.
The new airlines will fly Airbus A320 jets, cementing their reputation as the plane of choice on regional networks over archrival Boeing Co . Qantas plans to acquire up to 110 of them, worth more than $9.4 billion at list prices.
As Qantas rebases its loss-making international operations in Asia, it also plans to give up some of its long-haul routes and retire older planes as well as cut jobs.
''Right now 82 out of every 100 people flying out of Australia are choosing to fly with an airline other than Qantas, not including Jetstar,'' the airline's Irish-born chief executive, Alan Joyce, told a news conference.
Joyce has cut costs and jobs since taking the helm at Qantas in 2008, with growth increasingly focused on the budget offshoot Jetstar, which he ran before becoming chief executive.
''To do nothing, or tinker around the edges, would only guarantee the end of Qantas International in our home Australian market. That would be a tragedy,'' he said, adding that the international operation's cost base was around 20 percent higher than its major rivals.
Joyce said the new premium airline was expected to be launched next year with an initial fleet size of 11 A320s.
Tuesday, August 9, 2011
Cebu Pacific finalizes order for 30 A321neo aircraft from Airbus
Manila Bulletin
August 9, 2011, 2:57pm
MANILA, Philippines — Cebu Pacific of the Philippines has finalized a firm order with Airbus for the purchase of 30 A321neo aircraft. The contract firms up a previously announced memorandum of understanding signed in June. With this latest purchase agreement the fast-growing carrier has increased its total firm orders for the A320 Family to 71, of which 16 have already been delivered. The airline currently operates 25 A320 Family aircraft, including the 16 purchased from Airbus and nine leased aircraft.
Cebu Pacific plans to configure its A321neo fleet with 220 seats in a single class layout and will fly the aircraft across its expanding pan-Asian network. This currently includes 34 domestic and 16 international destinations, including Osaka, Seoul (Incheon), Beijing, Jakarta, Bangkok and Singapore. The airline will make a decision on its engine selection for the aircraft at a later date.
"The A321neo will enable us to increase capacity on our key routes while benefiting from the lowest operating costs of any aircraft in this size category," said Lance Gokongwei, Cebu Pacific President and CEO. "With these aircraft we will continue to build upon our reputation for offering high quality low fares service with one of the most modern and youngest fleets in Asia."
"Cebu Pacific has proven itself to be one of the most efficient and successful low cost carriers in the Asian region," said John Leahy, Chief Operating Officer, Customers, Airbus. "With the step-change in fuel savings offered by the A321neo the airline will be able to strengthen its position further, flying more people at even lower cost than before."
The A321neo is the largest model in the recently launched A320neo series, which incorporates new engines and large wing tip devices called sharklets. The advances will deliver fuel savings of over 15 percent and additional payload or range capability. The fuel savings translate into some 3,600 tonnes less CO2 per aircraft per year. In addition, the aircraft will provide a double-digit reduction in NOx emissions and reduced engine noise.
The A320 Family (A318, A319, A320 and A321) is recognized as the benchmark single-aisle aircraft family. Close to 7,700 A320 Family aircraft have already been ordered and more than 4,700 delivered to more than 330 customers and operators worldwide. The A320neo series will have over 95 percent airframe commonality with the existing models, enabling it to fit seamlessly into existing A320 Family fleets.
The new engines types offered on the A320neo Family are CFM International’s LEAP-X and Pratt & Whitney’s PurePower PW1100G.
August 9, 2011, 2:57pm
MANILA, Philippines — Cebu Pacific of the Philippines has finalized a firm order with Airbus for the purchase of 30 A321neo aircraft. The contract firms up a previously announced memorandum of understanding signed in June. With this latest purchase agreement the fast-growing carrier has increased its total firm orders for the A320 Family to 71, of which 16 have already been delivered. The airline currently operates 25 A320 Family aircraft, including the 16 purchased from Airbus and nine leased aircraft.
Cebu Pacific plans to configure its A321neo fleet with 220 seats in a single class layout and will fly the aircraft across its expanding pan-Asian network. This currently includes 34 domestic and 16 international destinations, including Osaka, Seoul (Incheon), Beijing, Jakarta, Bangkok and Singapore. The airline will make a decision on its engine selection for the aircraft at a later date.
"The A321neo will enable us to increase capacity on our key routes while benefiting from the lowest operating costs of any aircraft in this size category," said Lance Gokongwei, Cebu Pacific President and CEO. "With these aircraft we will continue to build upon our reputation for offering high quality low fares service with one of the most modern and youngest fleets in Asia."
"Cebu Pacific has proven itself to be one of the most efficient and successful low cost carriers in the Asian region," said John Leahy, Chief Operating Officer, Customers, Airbus. "With the step-change in fuel savings offered by the A321neo the airline will be able to strengthen its position further, flying more people at even lower cost than before."
The A321neo is the largest model in the recently launched A320neo series, which incorporates new engines and large wing tip devices called sharklets. The advances will deliver fuel savings of over 15 percent and additional payload or range capability. The fuel savings translate into some 3,600 tonnes less CO2 per aircraft per year. In addition, the aircraft will provide a double-digit reduction in NOx emissions and reduced engine noise.
The A320 Family (A318, A319, A320 and A321) is recognized as the benchmark single-aisle aircraft family. Close to 7,700 A320 Family aircraft have already been ordered and more than 4,700 delivered to more than 330 customers and operators worldwide. The A320neo series will have over 95 percent airframe commonality with the existing models, enabling it to fit seamlessly into existing A320 Family fleets.
The new engines types offered on the A320neo Family are CFM International’s LEAP-X and Pratt & Whitney’s PurePower PW1100G.
AirphilExpress eyes flight entitlements to Malaysia
Business Mirror
Tuesday, 09 August 2011 18:39 Lenie Lectura / Reporter
THE budget airline of flag carrier Philippine Airlines (PAL) has asked the Civil Aeronautics Board (CAB)?for flight entitlements to Malaysia. Specifically, it asked the board to 1,260 seat entitlements so it could service the Manila-Kuala Lumpur (KL)-Manila route.?
The airline is also interested to fly to other points in Malaysia other than KL and also asked the CAB to grant it another 720 seat entitlements.
The Philippines and Malaysia amended on June 8 an air services agreement for both countries. From 2,300 weekly seats, both air panels agreed to increase entitlements by 2,520 additional seats.
AirphilExpress is the third airline which applied for rights to fly to Malaysia.?
Southeast Asian Airlines also sought for seat entitlements to Malaysia totaling to 5,400-weekly seats.
The company asked for 2,520 seats per week to mount flights between Clark and KL; 1,260-weekly seats to be utilized for flights between Clark and Kota Kinabalu; 540 seats per week to Kuching; another 540 seats to Penang; and the same number of seats to Langkawi.
Cebu Pacific, for its part, applied for additional 720-weekly seats. Cebu Pacific is currently mounting 10 weekly flights for the Manila-KL route. This translates to 1,800 seats a week.
Cebu Pacific vice president for marketing and distribution Candice Iyog earlier said the company intends to mount twice daily flights within the year. The twice-a-day flights are already equivalent to 2,520 weekly seats.
“So, at a minimum and within the year, we would need an additional 720 seats a week. Starting next year though we want to go three times daily on Manila-KL,” Iyog had said.?
CAB executive director Carmelo Arcilla said the board will study the applications and release its decision after hearings are concluded.
Tuesday, 09 August 2011 18:39 Lenie Lectura / Reporter
THE budget airline of flag carrier Philippine Airlines (PAL) has asked the Civil Aeronautics Board (CAB)?for flight entitlements to Malaysia. Specifically, it asked the board to 1,260 seat entitlements so it could service the Manila-Kuala Lumpur (KL)-Manila route.?
The airline is also interested to fly to other points in Malaysia other than KL and also asked the CAB to grant it another 720 seat entitlements.
The Philippines and Malaysia amended on June 8 an air services agreement for both countries. From 2,300 weekly seats, both air panels agreed to increase entitlements by 2,520 additional seats.
AirphilExpress is the third airline which applied for rights to fly to Malaysia.?
Southeast Asian Airlines also sought for seat entitlements to Malaysia totaling to 5,400-weekly seats.
The company asked for 2,520 seats per week to mount flights between Clark and KL; 1,260-weekly seats to be utilized for flights between Clark and Kota Kinabalu; 540 seats per week to Kuching; another 540 seats to Penang; and the same number of seats to Langkawi.
Cebu Pacific, for its part, applied for additional 720-weekly seats. Cebu Pacific is currently mounting 10 weekly flights for the Manila-KL route. This translates to 1,800 seats a week.
Cebu Pacific vice president for marketing and distribution Candice Iyog earlier said the company intends to mount twice daily flights within the year. The twice-a-day flights are already equivalent to 2,520 weekly seats.
“So, at a minimum and within the year, we would need an additional 720 seats a week. Starting next year though we want to go three times daily on Manila-KL,” Iyog had said.?
CAB executive director Carmelo Arcilla said the board will study the applications and release its decision after hearings are concluded.
Monday, August 8, 2011
MAS, AirAsia plan share swap deal, to implement route synergies
Manila Bulletin
By LIAU Y-SING
August 8, 2011, 3:15pm
KUALA LUMPUR (Reuters) – Malaysian Airline System (MAS) and rival AirAsia are planning a share swap that would give AirAsia's parent a 20 percent stake in Malaysia's national airline, a source with direct knowledge of the deal said on Monday.
Under the deal, Malaysia's state investment arm, Khazanah Nasional, which currently owns close to 70 percent of MAS, would take a 10 percent stake in AirAsia, said the source who asked not to be identified because the deal has not been announced.
''This will help to improve synergies between the two,'' the source said. ''They have been competing unnecessarily in the past and they will now pool their resources together.''
AmResearch in Kuala Lumpur said in a note on Monday that the share swap could position MAS as a premium, long-haul carrier, while AirAsia takes on the domestic, short-haul network.
The share swap is expected to aid MAS, which has struggled to stay profitable, although it would be the second time in 10 years that the national carrier is being restructured to help its bottom line, analysts said.
AirAsia's chief executive, Tony Fernandes, and his deputy Kamarudin Meranun, will sit on the board of MAS after the restructuring, the source said, adding that CIMB is the deal's adviser.
Officials at MAS and Khazanah Nasional were not immediately available for comment. AirAsia officials said the airline would make a statement within a day or two.
The two airlines halted trading in their shares until Tuesday, saying separately they need time to prepare an announcement relating to ''a material transaction.''
Khazanah Nasional and AirAsia shareholders had denied on Sunday reports that AirAsia's shareholders will emerge as the largest owners of national carrier MAS shares.
The global aviation sector has been hit by rising fuel prices and economic instability, but MAS and AirAsia have adopted different strategies to deal with the challenges.
MAS managing director Azmil Zahruddin told Reuters in March that the airline was prepared for a stronger future, although the Japan earthquake in March posed a challenge.
In May, MAS posted a first quarter net loss of 242.3 million ringgit ($80.4 million) compared to a profit of 310.6 million ringgit a year earlier, after a decent FY2010 that saw its net profit surpass expectations of a net loss.
In 2001, the authorities bailed out the then loss-making MAS with about $472 million of state money, drawing fierce criticism from investors who painted the deal as government interference in the market.
''AirAsia was set up to liberalise Malaysian skies, but with this partnership, I see us going back to monopolies,'' said another aviation analyst with a local bank. ''At the end of the day, it's the consumers who will suffer as monopolies usually mean higher airfares.''
AirAsia recorded a net profit of 171.9 million ringgit in the first quarter, down almost 25 percent from a year earlier.
It is on a regional expansion drive, with a source saying it had recently drawn up plans to buy an extra 100 Airbus A320neo jets, potentially taking a record-breaking order to 300.
The budget carrier plans initial public offerings in Bangkok and Indonesia as it capitalizes on demand in the region for cheap air travel.
By LIAU Y-SING
August 8, 2011, 3:15pm
KUALA LUMPUR (Reuters) – Malaysian Airline System (MAS) and rival AirAsia are planning a share swap that would give AirAsia's parent a 20 percent stake in Malaysia's national airline, a source with direct knowledge of the deal said on Monday.
Under the deal, Malaysia's state investment arm, Khazanah Nasional, which currently owns close to 70 percent of MAS, would take a 10 percent stake in AirAsia, said the source who asked not to be identified because the deal has not been announced.
''This will help to improve synergies between the two,'' the source said. ''They have been competing unnecessarily in the past and they will now pool their resources together.''
AmResearch in Kuala Lumpur said in a note on Monday that the share swap could position MAS as a premium, long-haul carrier, while AirAsia takes on the domestic, short-haul network.
The share swap is expected to aid MAS, which has struggled to stay profitable, although it would be the second time in 10 years that the national carrier is being restructured to help its bottom line, analysts said.
AirAsia's chief executive, Tony Fernandes, and his deputy Kamarudin Meranun, will sit on the board of MAS after the restructuring, the source said, adding that CIMB is the deal's adviser.
Officials at MAS and Khazanah Nasional were not immediately available for comment. AirAsia officials said the airline would make a statement within a day or two.
The two airlines halted trading in their shares until Tuesday, saying separately they need time to prepare an announcement relating to ''a material transaction.''
Khazanah Nasional and AirAsia shareholders had denied on Sunday reports that AirAsia's shareholders will emerge as the largest owners of national carrier MAS shares.
The global aviation sector has been hit by rising fuel prices and economic instability, but MAS and AirAsia have adopted different strategies to deal with the challenges.
MAS managing director Azmil Zahruddin told Reuters in March that the airline was prepared for a stronger future, although the Japan earthquake in March posed a challenge.
In May, MAS posted a first quarter net loss of 242.3 million ringgit ($80.4 million) compared to a profit of 310.6 million ringgit a year earlier, after a decent FY2010 that saw its net profit surpass expectations of a net loss.
In 2001, the authorities bailed out the then loss-making MAS with about $472 million of state money, drawing fierce criticism from investors who painted the deal as government interference in the market.
''AirAsia was set up to liberalise Malaysian skies, but with this partnership, I see us going back to monopolies,'' said another aviation analyst with a local bank. ''At the end of the day, it's the consumers who will suffer as monopolies usually mean higher airfares.''
AirAsia recorded a net profit of 171.9 million ringgit in the first quarter, down almost 25 percent from a year earlier.
It is on a regional expansion drive, with a source saying it had recently drawn up plans to buy an extra 100 Airbus A320neo jets, potentially taking a record-breaking order to 300.
The budget carrier plans initial public offerings in Bangkok and Indonesia as it capitalizes on demand in the region for cheap air travel.
SilkAir inaugurates flights to Kokata
Manila Bulletin
August 8, 2011, 2:59am
MANILA, Philippines — SilkAir the regional wing of Singapore Airlines operated its first flight to Kolkata, the capital city of the state of West Bengal.
With the introduction of this four times weekly service, SilkAir now serves seven destinations in India.
The first flight, MI 488, took off 01 August at 1315 hours from Singapore Changi Airport Terminal 2 and is scheduled to arrive at Netaji Subhash Chandra Bose International Airport at 1500 hours. The return flight will depart from Kolkata at 2350 hours tonight and arrive in Singapore at 0635 hours tomorrow (all times local).
These newly introduced flights to Kolkata will complement Singapore Airlines’ three times weekly flights to the city. In total, the SIA Group of airlines will offer a combined daily flight service between Singapore and Kolkata.
“SilkAir’s new flights add to Singapore Airlines’ existing services, thus giving our customers more flexibility and choice of schedules,” said Mr Marvin Tan, Chief Executive SilkAir.
Singapore Airlines passengers from Manila and SilkAir passengers from Cebu and Davao enjoy seamless flight connections to a wide choice of flights to India by both airlines.
Formerly known as Calcutta, the city was established in 1690 by the East India Company and is known for prominent icons such as Mother Teresa, the Catholic nun who devoted her life to helping the poor and sick and Rabindranath Tagore, the first Asian winner of the Nobel Prize for Literature.
The city is the main business, commercial and financial hub of eastern India and houses a rich collection of buildings of significant historical interest and heritage, with many still retaining a colonial architecture reflecting Kolkata’s past as the former capital of British India.
August 8, 2011, 2:59am
MANILA, Philippines — SilkAir the regional wing of Singapore Airlines operated its first flight to Kolkata, the capital city of the state of West Bengal.
With the introduction of this four times weekly service, SilkAir now serves seven destinations in India.
The first flight, MI 488, took off 01 August at 1315 hours from Singapore Changi Airport Terminal 2 and is scheduled to arrive at Netaji Subhash Chandra Bose International Airport at 1500 hours. The return flight will depart from Kolkata at 2350 hours tonight and arrive in Singapore at 0635 hours tomorrow (all times local).
These newly introduced flights to Kolkata will complement Singapore Airlines’ three times weekly flights to the city. In total, the SIA Group of airlines will offer a combined daily flight service between Singapore and Kolkata.
“SilkAir’s new flights add to Singapore Airlines’ existing services, thus giving our customers more flexibility and choice of schedules,” said Mr Marvin Tan, Chief Executive SilkAir.
Singapore Airlines passengers from Manila and SilkAir passengers from Cebu and Davao enjoy seamless flight connections to a wide choice of flights to India by both airlines.
Formerly known as Calcutta, the city was established in 1690 by the East India Company and is known for prominent icons such as Mother Teresa, the Catholic nun who devoted her life to helping the poor and sick and Rabindranath Tagore, the first Asian winner of the Nobel Prize for Literature.
The city is the main business, commercial and financial hub of eastern India and houses a rich collection of buildings of significant historical interest and heritage, with many still retaining a colonial architecture reflecting Kolkata’s past as the former capital of British India.
Sunday, August 7, 2011
Airphil Express sees hike in local market share to 25% by yearend
The Philippine Star
By Mary Ann LL. Reyes (The Philippine Star) Updated August 07, 2011 12:00 AM
MANILA, Philippines - Lucio Tan-owned Airphil Express is projecting an increase in its domestic market share this year to 25 percent from 19 percent last year.
From 1.5 million passengers carried last year, Airphil is expecting this to increase to four million in 2011 as the carrier embarks on a major move to offer domestic and Southeast Asian routes from its just announced second hub in Clark.
Airphil is set to extend its operation base to Pampanga with the signing of a contract with the Clark International Airport Corp. (CIAC) which operates the Diosdado Macapagal International Airport (DMIA).
Airphil senior vice president for marketing and sales Alfredo Herrera said this is all in line with their expansion process and consistent with their growth strategy to solidify their position as a key player in the local budget airline market.
With seven Airbus A320s, three Q300s and five Q400 under its wing, the company is increasing its fleet size with the acquisition of two more brand new A320s arriving before yearend and for more next year.
“As end-April this year. Our market share is already at 23 percent. We expect to end the year with 25 percent. Our objective is to be a strong number two,” Herrera said.
For the first half of 2011, he revealed that Airphil had better top and bottom line numbers compared to the same period last year. “Our revenues were better than target but our bottom line was lower than expectation due to higher fuel prices,” Herrera explained.
For his part, CIAC president and CEO Victor Jose Luciano said that with the Clark airport having a catchment population of 25 million from both Central and Northern Luzon, they are developing Clark as part of a twin airport system to complement the Manila airports especially now that NAIA is becoming full and congested. “We are preparing to make Clark in three to five years’ time an international gateway. This partnership between CIAC and Airphil is a big boost to this,” he added.
With more aircraft acquisitions recently, Airphil has been able to expand routes and has commenced its Manila-Tacloban flight and Cebu-Hong kong flight. It will soon launch its Manila-Ozamiz and Davao-Iloilo routes.
Currently, Airphil flies to 25 domestic and two international destinations along with selected domestic flights originating from Davao and Zamboanga.
By Mary Ann LL. Reyes (The Philippine Star) Updated August 07, 2011 12:00 AM
MANILA, Philippines - Lucio Tan-owned Airphil Express is projecting an increase in its domestic market share this year to 25 percent from 19 percent last year.
From 1.5 million passengers carried last year, Airphil is expecting this to increase to four million in 2011 as the carrier embarks on a major move to offer domestic and Southeast Asian routes from its just announced second hub in Clark.
Airphil is set to extend its operation base to Pampanga with the signing of a contract with the Clark International Airport Corp. (CIAC) which operates the Diosdado Macapagal International Airport (DMIA).
Airphil senior vice president for marketing and sales Alfredo Herrera said this is all in line with their expansion process and consistent with their growth strategy to solidify their position as a key player in the local budget airline market.
With seven Airbus A320s, three Q300s and five Q400 under its wing, the company is increasing its fleet size with the acquisition of two more brand new A320s arriving before yearend and for more next year.
“As end-April this year. Our market share is already at 23 percent. We expect to end the year with 25 percent. Our objective is to be a strong number two,” Herrera said.
For the first half of 2011, he revealed that Airphil had better top and bottom line numbers compared to the same period last year. “Our revenues were better than target but our bottom line was lower than expectation due to higher fuel prices,” Herrera explained.
For his part, CIAC president and CEO Victor Jose Luciano said that with the Clark airport having a catchment population of 25 million from both Central and Northern Luzon, they are developing Clark as part of a twin airport system to complement the Manila airports especially now that NAIA is becoming full and congested. “We are preparing to make Clark in three to five years’ time an international gateway. This partnership between CIAC and Airphil is a big boost to this,” he added.
With more aircraft acquisitions recently, Airphil has been able to expand routes and has commenced its Manila-Tacloban flight and Cebu-Hong kong flight. It will soon launch its Manila-Ozamiz and Davao-Iloilo routes.
Currently, Airphil flies to 25 domestic and two international destinations along with selected domestic flights originating from Davao and Zamboanga.
AirphilExpress eyes 25% market share by end-2011
Business Mirror
Sunday, 07 August 2011 18:07 Lenie Lectura / Reporter
WITH the scheduled arrival of new aircraft, new routes to explore, and a new hub, low-cost carrier (LCC) AirphilExpress (APX) intends to be a strong second player in the domestic travel sector.
With a market share of 23 percent at end-April, APX aims to increase this to at least 25 percent by the end of the year. It also targets to transport 4 million passengers this year from 1.5 million in 2010.
“We want to be a strong second LCC. We want to narrow that gap with [Cebu Pacific],” said senior vice president for marketing and sales Alfredo Herrera.
APX is 99-percent owned by the Lucio Tan Group of Companies. It is also Philippine Airlines’ budget carrier.
The company announced last week that its two new Airbus A320s are set to arrive this year and four more will come in by next year.
APX will also add domestic and international routes very soon as it expands its presence starting October??in Clark, Pampanga where it will put up a new hub. “AirphilExpress will soon be offering domestic and Southeast Asian routes based in the Clark international airport to serve the growing number of travelers based in the northern regions of the country,” said Herrera. “This is in line with our expansion process and consistent with our growth strategy to solidify our position as a key player in the local budget airline market.”
At present, APX operates from Manila, Cebu, Davao and Zamboanga. It flies to 25 domestic and two international destinations—Singapore and Hong Kong. Its fleet is composed of seven A320s, three Q300s and five Q400s. It recently commenced Manila-Tacloban flight, and will soon launch Manila-Ozamiz and Davao-Iloilo routes. A Cebu-Hong Kong flight also debuted in July.
Herrera declined to identify the airline’s planned new routes. “We won’t announce it yet because if we do our competitors will start to bring down fares for those routes,” he said.
APX seeks to corner a considerable share of the budget airline market by offering travelers with more value propositions. Among them are free 15-kilo check-in luggage allowance plus seven-kilo hand-carry baggage that used to be standard among budget carriers.
The airline also offers 20-percent discount to students. It recently launched a customer loyalty program where loyal APX travelers can receive a free ticket after logging in 10 trips.
Sunday, 07 August 2011 18:07 Lenie Lectura / Reporter
WITH the scheduled arrival of new aircraft, new routes to explore, and a new hub, low-cost carrier (LCC) AirphilExpress (APX) intends to be a strong second player in the domestic travel sector.
With a market share of 23 percent at end-April, APX aims to increase this to at least 25 percent by the end of the year. It also targets to transport 4 million passengers this year from 1.5 million in 2010.
“We want to be a strong second LCC. We want to narrow that gap with [Cebu Pacific],” said senior vice president for marketing and sales Alfredo Herrera.
APX is 99-percent owned by the Lucio Tan Group of Companies. It is also Philippine Airlines’ budget carrier.
The company announced last week that its two new Airbus A320s are set to arrive this year and four more will come in by next year.
APX will also add domestic and international routes very soon as it expands its presence starting October??in Clark, Pampanga where it will put up a new hub. “AirphilExpress will soon be offering domestic and Southeast Asian routes based in the Clark international airport to serve the growing number of travelers based in the northern regions of the country,” said Herrera. “This is in line with our expansion process and consistent with our growth strategy to solidify our position as a key player in the local budget airline market.”
At present, APX operates from Manila, Cebu, Davao and Zamboanga. It flies to 25 domestic and two international destinations—Singapore and Hong Kong. Its fleet is composed of seven A320s, three Q300s and five Q400s. It recently commenced Manila-Tacloban flight, and will soon launch Manila-Ozamiz and Davao-Iloilo routes. A Cebu-Hong Kong flight also debuted in July.
Herrera declined to identify the airline’s planned new routes. “We won’t announce it yet because if we do our competitors will start to bring down fares for those routes,” he said.
APX seeks to corner a considerable share of the budget airline market by offering travelers with more value propositions. Among them are free 15-kilo check-in luggage allowance plus seven-kilo hand-carry baggage that used to be standard among budget carriers.
The airline also offers 20-percent discount to students. It recently launched a customer loyalty program where loyal APX travelers can receive a free ticket after logging in 10 trips.
Friday, August 5, 2011
AirPhil eyes 25% market share, adds new aircraft
Domestic market seen to continue growth
By: Paolo G. Montecillo
Philippine Daily Inquirer
10:21 pm | Friday, August 5th, 2011
The Lucio Tan group is taking on Gokongwei-led Cebu Pacific on all fronts, with budget unit AirPhil Express looking to take a significant bite out of the latter’s market share by the end of this year.
At a press conference Friday, AirPhil Express said it was set to add several more domestic and international destinations to its growing route network as it takes delivery of new aircraft.
Even as the airline industry struggles with high fuel prices, AirPhil Express, the sister company of flag carrier Philippine Airlines (PAL), said all airlines were expected to post healthy growth rates this year as more Filipinos start to travel by air.
“Our objective in the medium term is to become a strong number two budget carrier in the country. We want to close the gap with our rival,” AirPhil senior vice president for sales and marketing Alfredo Herrera said.
Cebu Pacific has a market share of 48 percent.
Herrera said AirPhil, for its part, ended last year with a 19-percent share of the local air travel market. By the end of this year, he said the company wanted this number to go up to 25 percent, or the equivalent of four million passengers.
He said the company was expecting to take delivery of two brand-new 180-seater Airbus A320 aircraft this year. Four more are slated to be delivered in 2012, adding to the company’s current fleet of seven jets.
He said industry growth continued to be driven by stiff competition among local players.
“People who have never taken the plane are now traveling by air as much as they can because prices are so reasonable,” Herrera told reporters.
AirPhil announced on Friday that it would put up a hub at the Diosdado Macapagal International Airport (DMIA) in Clark Freeport, Pampanga. Under its memorandum of agreement with Clark International Airport Corp., AirPhil will start operations at the facility by October this year.
Once in Clark, AirPhil will join other budget carriers like Cebu Pacific and Malaysia’s Air Asia that have chosen to put up major hubs at the facility north of Metro Manila. Air Asia’s local unit, Air Asia Philippines, has also chosen Clark as its local hub once it launches its operations later this year.
Aside from offering competitive prices, Herrera said AirPhil was also the only budget carrier that did not charge extra for baggage. The company allows passengers to have 15 kilos of free check-in luggage. It also allows seven kilos of free hand-carry baggage.
“This is an extremely important provision that has been taken for granted and now much appreciated by our passengers,” Herrera said.
By: Paolo G. Montecillo
Philippine Daily Inquirer
10:21 pm | Friday, August 5th, 2011
The Lucio Tan group is taking on Gokongwei-led Cebu Pacific on all fronts, with budget unit AirPhil Express looking to take a significant bite out of the latter’s market share by the end of this year.
At a press conference Friday, AirPhil Express said it was set to add several more domestic and international destinations to its growing route network as it takes delivery of new aircraft.
Even as the airline industry struggles with high fuel prices, AirPhil Express, the sister company of flag carrier Philippine Airlines (PAL), said all airlines were expected to post healthy growth rates this year as more Filipinos start to travel by air.
“Our objective in the medium term is to become a strong number two budget carrier in the country. We want to close the gap with our rival,” AirPhil senior vice president for sales and marketing Alfredo Herrera said.
Cebu Pacific has a market share of 48 percent.
Herrera said AirPhil, for its part, ended last year with a 19-percent share of the local air travel market. By the end of this year, he said the company wanted this number to go up to 25 percent, or the equivalent of four million passengers.
He said the company was expecting to take delivery of two brand-new 180-seater Airbus A320 aircraft this year. Four more are slated to be delivered in 2012, adding to the company’s current fleet of seven jets.
He said industry growth continued to be driven by stiff competition among local players.
“People who have never taken the plane are now traveling by air as much as they can because prices are so reasonable,” Herrera told reporters.
AirPhil announced on Friday that it would put up a hub at the Diosdado Macapagal International Airport (DMIA) in Clark Freeport, Pampanga. Under its memorandum of agreement with Clark International Airport Corp., AirPhil will start operations at the facility by October this year.
Once in Clark, AirPhil will join other budget carriers like Cebu Pacific and Malaysia’s Air Asia that have chosen to put up major hubs at the facility north of Metro Manila. Air Asia’s local unit, Air Asia Philippines, has also chosen Clark as its local hub once it launches its operations later this year.
Aside from offering competitive prices, Herrera said AirPhil was also the only budget carrier that did not charge extra for baggage. The company allows passengers to have 15 kilos of free check-in luggage. It also allows seven kilos of free hand-carry baggage.
“This is an extremely important provision that has been taken for granted and now much appreciated by our passengers,” Herrera said.
Fuel costs trim airlines' earnings
Manila Bulletin
By JOHN HEILPRIN
August 5, 2011, 1:51pm
GENEVA (AP) – Sky-high fuel prices have hit the profits of the world's airlines though Europe's carriers recovered after suffering last year from a volcanic ash cloud that brought traffic to a standstill, the industry's main lobby group said.
The International Air Transport Association said early results from a sample of airlines globally show they will post $1.04 billion in profits for the second quarter of 2011, a big drop from the $2.88 billion in profits for the same quarter a year earlier.
"The sample is too small as yet to come to clear conclusions but Asian airlines appear to have been under (the) most pressure, whereas European airlines have improved operating profits (partly because second-quarter 2010 results were hit by the ash cloud last year),'' the Geneva-based group said.
Along with Europe's recovery, another bright spot for airlines is that air travel volume overall looks to be expanding at a rate of 4-5 percent a year, IATA said, though air travel and freight dipped lower in June.
But IATA said those sources of revenue have been more than offset by the rise in jet fuel prices above $130 a barrel on worries about supply, which partly reflects the ongoing civil war in Libya.
By JOHN HEILPRIN
August 5, 2011, 1:51pm
GENEVA (AP) – Sky-high fuel prices have hit the profits of the world's airlines though Europe's carriers recovered after suffering last year from a volcanic ash cloud that brought traffic to a standstill, the industry's main lobby group said.
The International Air Transport Association said early results from a sample of airlines globally show they will post $1.04 billion in profits for the second quarter of 2011, a big drop from the $2.88 billion in profits for the same quarter a year earlier.
"The sample is too small as yet to come to clear conclusions but Asian airlines appear to have been under (the) most pressure, whereas European airlines have improved operating profits (partly because second-quarter 2010 results were hit by the ash cloud last year),'' the Geneva-based group said.
Along with Europe's recovery, another bright spot for airlines is that air travel volume overall looks to be expanding at a rate of 4-5 percent a year, IATA said, though air travel and freight dipped lower in June.
But IATA said those sources of revenue have been more than offset by the rise in jet fuel prices above $130 a barrel on worries about supply, which partly reflects the ongoing civil war in Libya.
Monday, August 1, 2011
Tiger Airways remains grounded
Online business reporter Michael Janda
Updated August 01, 2011 12:59:41
Budget airline Tiger Airways will not resume flying until at least August 3, after a court hearing about its grounding was adjourned.
The Federal Court was due to hear an application by the Civil Aviation Safety Authority (CASA) to extend the Tiger grounding, but it and the airline have agreed to adjourn that hearing until August 3.
Both parties agreed to the adjournment to give them time to keep working through the safety issues raised by CASA that triggered the grounding at the start of last month.
Tiger Airways says neither it nor CASA see any point in holding the hearing while they are in ongoing discussions regarding the suspension.
The airline says the adjournment means it will be grounded until at least Wednesday.
Tiger says press reports that it will recommence flights on Friday August 5 are speculation.
The airline says it will make a formal announcement about the resumption of flights at the appropriate time.
Updated August 01, 2011 12:59:41
Budget airline Tiger Airways will not resume flying until at least August 3, after a court hearing about its grounding was adjourned.
The Federal Court was due to hear an application by the Civil Aviation Safety Authority (CASA) to extend the Tiger grounding, but it and the airline have agreed to adjourn that hearing until August 3.
Both parties agreed to the adjournment to give them time to keep working through the safety issues raised by CASA that triggered the grounding at the start of last month.
Tiger Airways says neither it nor CASA see any point in holding the hearing while they are in ongoing discussions regarding the suspension.
The airline says the adjournment means it will be grounded until at least Wednesday.
Tiger says press reports that it will recommence flights on Friday August 5 are speculation.
The airline says it will make a formal announcement about the resumption of flights at the appropriate time.
FAA upgrade essential for tourism growth
Philippine Star
August 1, 2011
There are some basics, not within the jurisdiction of the Tourism Secretary that must be delivered if we are to make any real headway in our tourism program. These are the same basics I have long referred to as the “homework” that must be accomplished even before the Tourism Secretary embarks on road shows abroad. I have said this during the time of former Tourism Secretary Ace Durano and I am saying it again now. Any tourism program foisted on us is just so much hot air unless these basics are met.
First basic requirement is successfully getting ourselves out of the US FAA Category 2 downgrade and taken off the list of countries with a substandard aviation regulatory environment and facilities by European aviation regulators. This Category 2 rating prevents our airlines from increasing their flights to the US or even changing the type of aircrafts our carriers use. Our downgrade also prevents us from getting more European tourists and our airlines from flying to Europe.
I understand that P-Noy has given the Civil Aviation Authority of the Philippines (CAAP) up to the end of the year to secure this upgrade. We are not holding our breath, however. The new charter for the authority supposedly grants it greater administrative autonomy, allowing it to hire the qualified experts and to change procedures to meet the regulatory standards sought by the FAA. But I understand its personnel are basically the same old incompetent people who caused our downgrade to begin with. The new law should have made it possible to fire everybody and start fresh. Now it seems we still have the same handicap of incompetent staff that may even have established rackets within the agency. We still have check pilots who are retired air force people who are not qualified to fly the planes they are supposed to be check pilots for.
The P-Noy administration may use as an excuse the time it took them to get rid of Ate Glue’s midnight appointee as CAAP head. But I hear from private sector sources dealing with CAAP that P-Noy didn’t do better. The new man he appointed to head CAAP, those in the know tell me, can hardly be described as someone who is up to the daunting challenge. His main credential, I am told, is being the personal pilot of P-Noy and his family in the past.
But things are supposedly moving… whether it is fast enough to matter is another question. A foreign consultant who is said to have helped some other countries successfully deal with a similar downgrade has been hired and is helping work through the requirements. I am also told that newly installed DOTC Secretary Mar Roxas has already met with Tourism Secretary Bertie Lim and both are cognizant of the urgency of getting the FAA credentials.
The urgency of the situation cannot be overemphasized. Because of the downgrade, Philippine Airlines is not allowed to increase its flights from the current 33 frequencies per week. PAL ordered 6 new B777 (370 seats) and delivery started in 2009. PAL could have theoretically deployed these fuel efficient planes to the US, where the Philippine carriers are allowed to fly to 28 points. The Category 2 downgrade prevents PAL from using these brand new airplanes even if these were all manufactured by an American company. The US has also issued an advisory warning US citizens in the Philippines to refrain from using Philippine-based carriers effective since 2008.
The European Union also banned Philippine registered carriers from European skies. The Europeans also warned EU citizens to refrain from using Philippine-based carriers effective from April 1, 2010. This ban caused mass cancellations of European tour groups and is still causing us problems in getting more European tourists to come because the ban prevents the tourists from getting travel insurance that covers domestic flights on Philippine carriers.
The failure of the Arroyo administration to address this problem, despite numerous press releases of deadlines Ms. Arroyo supposedly set, is a serious dereliction of their duty. As the Philippine Travel and Tours Association (PTTA) noted, “the downgrade cast a negative image of the country as an unsafe destination with untrustworthy facilities and infrastructure.” How can we have a tourism promotion campaign if we are officially tagged as unsafe by our current principal markets?
While this unfortunate observation about government aviation facilities and infrastructure may be partly true, in fairness to our airlines, they have been observing international safety standards. Our international pilots, for instance, are licensed by the US FAA and the aircrafts of our airlines are maintained by internationally respected entities like Lufthansa for PAL in a facility at NAIA and Singapore Airlines for Cebu Pacific in a facility in Clark.
PTTA has pointed out that the overall share of US arrivals in total Philippines arrivals between 2007 and 2010 has declined. For the PTTA, however, “the real impact of the FAA downgrading and EU ban is the opportunity cost of forgone traffic that could have been attracted had the downgrading and EU ban not occurred.” One of the biggest opportunity loss is the failure of PAL to deploy its new more fuel efficient B777 fleet to the US and fly to new cities in the US. Cebu Pacific also cannot start a trans-Pacific route with the downgrade in effect.
The FAA downgrade likewise prevents Philippine carriers with smaller aircraft to tap US territories such as Guam. Lance Gokongwei once told me he would have wanted Cebu Pacific to fly to Guam which is within the range of their A320 fleet. The EU blacklisting also prevents Philippine carriers from flying to Europe.
Then there is this other homework… the matter of visas to nationals of the two most important growth markets for travel and tourism in our region: China and India. For some shortsighted reasons, the DFA is said to be reluctant to lift visa requirements because visa fees are a good source of income for our consulates and embassies abroad. The Immigration Bureau is concerned about enforcement capability once the more nationals from these presently restricted nationals come. They should all see the big picture: the benefits expanded tourism will bring to our country.
PAL has started direct flights to New Delhi to start tapping this rich market. I understand the direct flights are nearly empty while those that stop at Bangkok have decent load factors until Bangkok. The Indian government is already giving Filipino nationals visas on arrival, thus promoting India as a tourist destination for Filipinos. But we are not taking advantage of the same opportunity for the return flight because of bureaucratic shortsightedness.
Of course there is the matter of congestion at NAIA, the third homework that must be attended to with a lot more urgency and I do not mean just the terminal buildings. More important, I am told by airline officials that there are no more landing/take off slots to be had at NAIA, which means our ability to increase our visitor numbers is now severely curtailed. We can and we should redirect them to Clark and other open skies airports but we aren’t doing much in that area too.
One last issue --- the common carriers tax is supposedly an irritant with the foreign carriers operating here. The DOF and the BIR have just reiterated the justification for retaining the tax in some form or another. Sources tell me that Bertie is unable to convince Secretary Purisima to see the situation his way… removing the tax will increase flights, bring in more tourists who will spend more and thus the BIR can collect more taxes from the tourism sector.
In a letter to Secretary Purisima, the airlines pointed out that because the tax discriminates against foreign airlines, it negates the potential benefits to the tourism industry of the liberal aviation policies of the Aquino administration. In the meantime, KLM, the only European airline operating a direct flight from Manila to Europe is reportedly seriously considering bypassing us too in exasperation.
As the private tourism sector emphasized to me, we need everyone working in one direction and it is not just the Tourism Secretary’s fault we are getting nowhere. As I have been saying… first things first… let us do our homework and remove the hindrances to a thriving tourism sector before anyone talks marketing on television or international road shows.
Guns vs women
Dr. Ernie E contributed these three top reasons why a lot of men prefer guns over women.
You can trade an old 44 for a new 22.
If you admire a friend’s gun and tell him so, he will probably let you try it out a few times.
You can buy a silencer for a gun.
August 1, 2011
There are some basics, not within the jurisdiction of the Tourism Secretary that must be delivered if we are to make any real headway in our tourism program. These are the same basics I have long referred to as the “homework” that must be accomplished even before the Tourism Secretary embarks on road shows abroad. I have said this during the time of former Tourism Secretary Ace Durano and I am saying it again now. Any tourism program foisted on us is just so much hot air unless these basics are met.
First basic requirement is successfully getting ourselves out of the US FAA Category 2 downgrade and taken off the list of countries with a substandard aviation regulatory environment and facilities by European aviation regulators. This Category 2 rating prevents our airlines from increasing their flights to the US or even changing the type of aircrafts our carriers use. Our downgrade also prevents us from getting more European tourists and our airlines from flying to Europe.
I understand that P-Noy has given the Civil Aviation Authority of the Philippines (CAAP) up to the end of the year to secure this upgrade. We are not holding our breath, however. The new charter for the authority supposedly grants it greater administrative autonomy, allowing it to hire the qualified experts and to change procedures to meet the regulatory standards sought by the FAA. But I understand its personnel are basically the same old incompetent people who caused our downgrade to begin with. The new law should have made it possible to fire everybody and start fresh. Now it seems we still have the same handicap of incompetent staff that may even have established rackets within the agency. We still have check pilots who are retired air force people who are not qualified to fly the planes they are supposed to be check pilots for.
The P-Noy administration may use as an excuse the time it took them to get rid of Ate Glue’s midnight appointee as CAAP head. But I hear from private sector sources dealing with CAAP that P-Noy didn’t do better. The new man he appointed to head CAAP, those in the know tell me, can hardly be described as someone who is up to the daunting challenge. His main credential, I am told, is being the personal pilot of P-Noy and his family in the past.
But things are supposedly moving… whether it is fast enough to matter is another question. A foreign consultant who is said to have helped some other countries successfully deal with a similar downgrade has been hired and is helping work through the requirements. I am also told that newly installed DOTC Secretary Mar Roxas has already met with Tourism Secretary Bertie Lim and both are cognizant of the urgency of getting the FAA credentials.
The urgency of the situation cannot be overemphasized. Because of the downgrade, Philippine Airlines is not allowed to increase its flights from the current 33 frequencies per week. PAL ordered 6 new B777 (370 seats) and delivery started in 2009. PAL could have theoretically deployed these fuel efficient planes to the US, where the Philippine carriers are allowed to fly to 28 points. The Category 2 downgrade prevents PAL from using these brand new airplanes even if these were all manufactured by an American company. The US has also issued an advisory warning US citizens in the Philippines to refrain from using Philippine-based carriers effective since 2008.
The European Union also banned Philippine registered carriers from European skies. The Europeans also warned EU citizens to refrain from using Philippine-based carriers effective from April 1, 2010. This ban caused mass cancellations of European tour groups and is still causing us problems in getting more European tourists to come because the ban prevents the tourists from getting travel insurance that covers domestic flights on Philippine carriers.
The failure of the Arroyo administration to address this problem, despite numerous press releases of deadlines Ms. Arroyo supposedly set, is a serious dereliction of their duty. As the Philippine Travel and Tours Association (PTTA) noted, “the downgrade cast a negative image of the country as an unsafe destination with untrustworthy facilities and infrastructure.” How can we have a tourism promotion campaign if we are officially tagged as unsafe by our current principal markets?
While this unfortunate observation about government aviation facilities and infrastructure may be partly true, in fairness to our airlines, they have been observing international safety standards. Our international pilots, for instance, are licensed by the US FAA and the aircrafts of our airlines are maintained by internationally respected entities like Lufthansa for PAL in a facility at NAIA and Singapore Airlines for Cebu Pacific in a facility in Clark.
PTTA has pointed out that the overall share of US arrivals in total Philippines arrivals between 2007 and 2010 has declined. For the PTTA, however, “the real impact of the FAA downgrading and EU ban is the opportunity cost of forgone traffic that could have been attracted had the downgrading and EU ban not occurred.” One of the biggest opportunity loss is the failure of PAL to deploy its new more fuel efficient B777 fleet to the US and fly to new cities in the US. Cebu Pacific also cannot start a trans-Pacific route with the downgrade in effect.
The FAA downgrade likewise prevents Philippine carriers with smaller aircraft to tap US territories such as Guam. Lance Gokongwei once told me he would have wanted Cebu Pacific to fly to Guam which is within the range of their A320 fleet. The EU blacklisting also prevents Philippine carriers from flying to Europe.
Then there is this other homework… the matter of visas to nationals of the two most important growth markets for travel and tourism in our region: China and India. For some shortsighted reasons, the DFA is said to be reluctant to lift visa requirements because visa fees are a good source of income for our consulates and embassies abroad. The Immigration Bureau is concerned about enforcement capability once the more nationals from these presently restricted nationals come. They should all see the big picture: the benefits expanded tourism will bring to our country.
PAL has started direct flights to New Delhi to start tapping this rich market. I understand the direct flights are nearly empty while those that stop at Bangkok have decent load factors until Bangkok. The Indian government is already giving Filipino nationals visas on arrival, thus promoting India as a tourist destination for Filipinos. But we are not taking advantage of the same opportunity for the return flight because of bureaucratic shortsightedness.
Of course there is the matter of congestion at NAIA, the third homework that must be attended to with a lot more urgency and I do not mean just the terminal buildings. More important, I am told by airline officials that there are no more landing/take off slots to be had at NAIA, which means our ability to increase our visitor numbers is now severely curtailed. We can and we should redirect them to Clark and other open skies airports but we aren’t doing much in that area too.
One last issue --- the common carriers tax is supposedly an irritant with the foreign carriers operating here. The DOF and the BIR have just reiterated the justification for retaining the tax in some form or another. Sources tell me that Bertie is unable to convince Secretary Purisima to see the situation his way… removing the tax will increase flights, bring in more tourists who will spend more and thus the BIR can collect more taxes from the tourism sector.
In a letter to Secretary Purisima, the airlines pointed out that because the tax discriminates against foreign airlines, it negates the potential benefits to the tourism industry of the liberal aviation policies of the Aquino administration. In the meantime, KLM, the only European airline operating a direct flight from Manila to Europe is reportedly seriously considering bypassing us too in exasperation.
As the private tourism sector emphasized to me, we need everyone working in one direction and it is not just the Tourism Secretary’s fault we are getting nowhere. As I have been saying… first things first… let us do our homework and remove the hindrances to a thriving tourism sector before anyone talks marketing on television or international road shows.
Guns vs women
Dr. Ernie E contributed these three top reasons why a lot of men prefer guns over women.
You can trade an old 44 for a new 22.
If you admire a friend’s gun and tell him so, he will probably let you try it out a few times.
You can buy a silencer for a gun.
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