Manila Bulletin
September 30, 2011
MANILA, Philippines — Airlines, airports, air navigation service providers and manufacturers committed to improve fuel efficiency by 1.5% annually to 2020 and cut CO2 emissions in half by 2050, the International Air Transport Association (IATA) pledged.
Hence, the association is inviting governments to join industry as committed partners in a global approach to reducing aviation’s carbon emissions that could also include a global Emissions Trading Scheme (ETS) or other compensation measures.
“The industry’s value chain is united around ambitious targets and a clear strategy to reduce its carbon footprint,” reiterated Tony Tyler, IATA’s Director General and CEO in a speech at the recent Greener Skies conference in Hong Kong.
“To achieve the positive economic measures, technology improvements, more efficient infrastructure and better operations necessary to meet our targets, governments need to be much more proactive stakeholders and real partners,” he stressed.
Indeed, cutting net emissions in half by 2050, compared to 2005 is a challenging target, Tyler conceded.
“Airlines represent 2% of global man-made CO2 emissions. This year that is estimated to be some 650 million tonnes of CO2 emitted while carrying 2.8 billion passengers and 46 million tonnes of cargo,” he elaborated.
By 2050, the industry aspires to carry 16 billion passengers and 400 million tones of cargo with some 320 million tonnes of CO2 emissions.
The industry has agreed on a four-pillar strategy to achieve emissions reductions that has also been endorsed by governments through the International Civil Aviation Organization (ICAO). The four pillars are: (1) investments in technology, (2) more efficient infrastructure, (3) more efficient operations and (4) positive economic measures.
Sustainable biofuels for aviation are also rapidly evolving. At least six airlines have carried commercial passengers on flights powered by biofuels. Over their lifecycle, sustainable biofuels could reduce the industry’s carbon footprint by up to 80%.
“Biofuels could be a game changer,” the CEO noted. “But despite the quick progress to date, some major hurdles still remain, such as bringing big oil on board and getting the policy framework of fiscal and legal incentives to encourage their commercialization. We need positive economic measures that result from strategic government decisions to support the growth of green economies – including aviation.”
Friday, September 30, 2011
Phl one of most liberalized in terms of air access
Philippine Star
September 30, 2011
MANILA, Philippines - A tourism group has debunked the recurring claim by open skies advocates that the Philippines needs to further open up its skies to attract more tourists as it revealed information that the country is one of the most liberalized in terms of air access by foreign carriers.
“Open skies advocates have been harping on the need for full open skies to attract more tourists but in reality we have already a very liberalized air policy as shown by the Travel & Tourism Competitiveness Report 2011 of the World Economic Forum,” Robert Lim Joseph, founder of TourismWatch Philippines, said.
Joseph said based on the report, the Philippines is ranked 29 out of 139 countries in terms of “Openness of bilateral Air Service Agreements.”
He said although the Philippines is number 29 in terms of openness, tourists are still not coming in droves compared to its Southeast Asian neighbors like Thailand, Malaysia and Indonesia.
Besides being exceedingly open to foreign carriers, the Philippines ranks number 30 out of 139 countries in terms of “Available seat kilometers, international.”
“This all proves that the poor performance of our tourism sector is not about accessibility to Philippine air market and availability of airline seats but other factors,” he said.
For ticket taxes and airport charges, the Philippines ranked 20 in the world out of 139 countries “so we cannot understand the rantings of the lobbyists to cancel our taxes on foreign carriers when this is not the issue.”
Joseph cited the reasons why tourists hesitate to visit the Philippines based on the findings of the report.
He said the Philippines ranks 112 in terms of quality of air transport infrastructure; 99 in terms of effectiveness of marketing and branding; 132 in terms of hotel rooms; 123 in terms of transparency of government policymaking; 105 in terms of reliability of police services; 109 in terms of safety and security; 114 in terms of quality of roads (specially to tourist destinations), and 70 in terms of government prioritization of the travel and tourism industry.
Joseph said these are the factors that the government should look into and address to boost tourism.
September 30, 2011
MANILA, Philippines - A tourism group has debunked the recurring claim by open skies advocates that the Philippines needs to further open up its skies to attract more tourists as it revealed information that the country is one of the most liberalized in terms of air access by foreign carriers.
“Open skies advocates have been harping on the need for full open skies to attract more tourists but in reality we have already a very liberalized air policy as shown by the Travel & Tourism Competitiveness Report 2011 of the World Economic Forum,” Robert Lim Joseph, founder of TourismWatch Philippines, said.
Joseph said based on the report, the Philippines is ranked 29 out of 139 countries in terms of “Openness of bilateral Air Service Agreements.”
He said although the Philippines is number 29 in terms of openness, tourists are still not coming in droves compared to its Southeast Asian neighbors like Thailand, Malaysia and Indonesia.
Besides being exceedingly open to foreign carriers, the Philippines ranks number 30 out of 139 countries in terms of “Available seat kilometers, international.”
“This all proves that the poor performance of our tourism sector is not about accessibility to Philippine air market and availability of airline seats but other factors,” he said.
For ticket taxes and airport charges, the Philippines ranked 20 in the world out of 139 countries “so we cannot understand the rantings of the lobbyists to cancel our taxes on foreign carriers when this is not the issue.”
Joseph cited the reasons why tourists hesitate to visit the Philippines based on the findings of the report.
He said the Philippines ranks 112 in terms of quality of air transport infrastructure; 99 in terms of effectiveness of marketing and branding; 132 in terms of hotel rooms; 123 in terms of transparency of government policymaking; 105 in terms of reliability of police services; 109 in terms of safety and security; 114 in terms of quality of roads (specially to tourist destinations), and 70 in terms of government prioritization of the travel and tourism industry.
Joseph said these are the factors that the government should look into and address to boost tourism.
Thursday, September 22, 2011
Asia Pacific needs 182,300 pilots
Manila Bulletin
September 22, 2011
MANILA, Philippines — Boeing forecasts the Asia Pacific region will require hundreds of thousands of new commercial airline pilots and technicians over the next 20 years to support airline fleet modernization and the rapid growth of air travel.
The 2011 Boeing Pilot & Technician Outlook calls for 182,300 new pilots and 247,400 new technicians in the Asia Pacific region through 2030. The greatest need is in China, which will require 72,700 pilots and 108,300 technicians over the next 20 years.
"The demand for aviation personnel is evident today. In Asia we're already beginning to see some delays and operational disruptions due to a shortage of pilots," said Roei Ganzarski, chief customer officer, Boeing Flight Services.
"To ensure the success of our industry as travel demands grows, it is critical that we continue to foster a talent pipeline of capable and well-trained aviation personnel."
North East Asia will need 20,800 pilots and 30,200 technicians over the next 20 years. South East Asia will require 47,100 pilots and 60,600 technicians. The Oceania region will need 13,600 pilots and 15,600 technicians and South West Asia will need 28,100 pilots and 32,700 technicians.
"As an industry we must make a concentrated effort to get younger generations excited about careers in aviation. We are competing for talent with alluring hi-tech companies and we need to do a better job showcasing our industry as a global, technological, multi-faceted environment where individuals from all backgrounds and disciplines can make a significant impact," Ganzarski added. (EHL)
September 22, 2011
MANILA, Philippines — Boeing forecasts the Asia Pacific region will require hundreds of thousands of new commercial airline pilots and technicians over the next 20 years to support airline fleet modernization and the rapid growth of air travel.
The 2011 Boeing Pilot & Technician Outlook calls for 182,300 new pilots and 247,400 new technicians in the Asia Pacific region through 2030. The greatest need is in China, which will require 72,700 pilots and 108,300 technicians over the next 20 years.
"The demand for aviation personnel is evident today. In Asia we're already beginning to see some delays and operational disruptions due to a shortage of pilots," said Roei Ganzarski, chief customer officer, Boeing Flight Services.
"To ensure the success of our industry as travel demands grows, it is critical that we continue to foster a talent pipeline of capable and well-trained aviation personnel."
North East Asia will need 20,800 pilots and 30,200 technicians over the next 20 years. South East Asia will require 47,100 pilots and 60,600 technicians. The Oceania region will need 13,600 pilots and 15,600 technicians and South West Asia will need 28,100 pilots and 32,700 technicians.
"As an industry we must make a concentrated effort to get younger generations excited about careers in aviation. We are competing for talent with alluring hi-tech companies and we need to do a better job showcasing our industry as a global, technological, multi-faceted environment where individuals from all backgrounds and disciplines can make a significant impact," Ganzarski added. (EHL)
Airphil Express upgrades customer service
Manila Bulletin
September 22, 2011
MANILA, Philippines — Recognizing the growth in social media as an exciting chance to expand customer service reach, the budget airline with the most aggressive growth rates in the country is also the first to introduce round-the-clock dedicated customer support service on popular social media sites, Twitter and Facebook. Airphil Express’ 24/7 social networking presence is seen as integral to operationalizing its customer-oriented policy, not just during flights but also in the crucial before-and-after sales.
The development of Airphil Express’ customer service feature is instructive of what it takes for a brand to be receptive to the pulse of consumers. When first launched in March this year, Airphil Express provided social media customer support during office hours from 9 a.m. to 5 p.m. Less than three months later, the servicing period was extended until 10 p.m. weekdays and included weekends, which more than doubled the incoming number of comments from Twitter and Facebook users. Noting that messages asking for updates about flights especially during the rainy season were being posted in the wee hours, the airline pushed for the August launch of its “any time of the day, any day of the week” customer assistance to provide quicker or almost real-time responses, just less than six months since the airline started the feature.
The dynamics of customer service around the world have changed since the boom of social networking. The “personal” becomes “public” in a matter of seconds, and this becomes an area of opportunity or a source of problem for many businesses, especially if complaints are not attended to or are being acknowledged but not fast enough for the consumer involved.
September 22, 2011
MANILA, Philippines — Recognizing the growth in social media as an exciting chance to expand customer service reach, the budget airline with the most aggressive growth rates in the country is also the first to introduce round-the-clock dedicated customer support service on popular social media sites, Twitter and Facebook. Airphil Express’ 24/7 social networking presence is seen as integral to operationalizing its customer-oriented policy, not just during flights but also in the crucial before-and-after sales.
The development of Airphil Express’ customer service feature is instructive of what it takes for a brand to be receptive to the pulse of consumers. When first launched in March this year, Airphil Express provided social media customer support during office hours from 9 a.m. to 5 p.m. Less than three months later, the servicing period was extended until 10 p.m. weekdays and included weekends, which more than doubled the incoming number of comments from Twitter and Facebook users. Noting that messages asking for updates about flights especially during the rainy season were being posted in the wee hours, the airline pushed for the August launch of its “any time of the day, any day of the week” customer assistance to provide quicker or almost real-time responses, just less than six months since the airline started the feature.
The dynamics of customer service around the world have changed since the boom of social networking. The “personal” becomes “public” in a matter of seconds, and this becomes an area of opportunity or a source of problem for many businesses, especially if complaints are not attended to or are being acknowledged but not fast enough for the consumer involved.
Open Skies EO has not gotten off the ground!
Philippine Star
September 22, 2011
Last Monday, the Department of Tourism (DoT) held a road show on Executive Order No. 29 a.k.a. Open Skies Policy at the Grand Hotel in Cebu City. They had only one resource speaker, Atty. Jose Claro S. Tesoro who tried to sell this outdated idea called Open Skies Policy. In the end, we learned that this is not really a fully opened Open Skies policy as the EO still features a Philippine Air Negotiating Panel. What do we need to negotiate if we open our skies already huh?
The proponents for the Open Skies policy insist that when we embrace it, there will be a flood of foreign airlines coming to the country. Hence I asked a simple question, “How many airlines have come to the Philippines since EO No. 29 was signed by the President?” Atty. Tesoro told me that Tiger Air was going to fly from Singapore to Davao. But I have previous knowledge that this was planned during the time of President GMA.
I pressed on that the Open Skies Policy was a failure in the sense that for the Mactan Cebu International Airport Authority (MCIAA) there were 70 entitlements given to foreign airlines, but they never came. Atty. Tesoro’s reply was, we did not do enough to promote Cebu to those airlines. That reply begs the question as to who should promote Cebu? Well, years ago during the dark years of Martial Law, Cebu did promote itself as “An Island in the Pacific” and it was a great hit as Japanese tourists came to Cebu on chartered flights. But since the return to democracy, I thought that promoting the Philippines is the job of the DOT? I hope we’re not getting confusing signals here. This is why I believe that the Open Skies Policy hasn’t lifted off.
September 22, 2011
Last Monday, the Department of Tourism (DoT) held a road show on Executive Order No. 29 a.k.a. Open Skies Policy at the Grand Hotel in Cebu City. They had only one resource speaker, Atty. Jose Claro S. Tesoro who tried to sell this outdated idea called Open Skies Policy. In the end, we learned that this is not really a fully opened Open Skies policy as the EO still features a Philippine Air Negotiating Panel. What do we need to negotiate if we open our skies already huh?
The proponents for the Open Skies policy insist that when we embrace it, there will be a flood of foreign airlines coming to the country. Hence I asked a simple question, “How many airlines have come to the Philippines since EO No. 29 was signed by the President?” Atty. Tesoro told me that Tiger Air was going to fly from Singapore to Davao. But I have previous knowledge that this was planned during the time of President GMA.
I pressed on that the Open Skies Policy was a failure in the sense that for the Mactan Cebu International Airport Authority (MCIAA) there were 70 entitlements given to foreign airlines, but they never came. Atty. Tesoro’s reply was, we did not do enough to promote Cebu to those airlines. That reply begs the question as to who should promote Cebu? Well, years ago during the dark years of Martial Law, Cebu did promote itself as “An Island in the Pacific” and it was a great hit as Japanese tourists came to Cebu on chartered flights. But since the return to democracy, I thought that promoting the Philippines is the job of the DOT? I hope we’re not getting confusing signals here. This is why I believe that the Open Skies Policy hasn’t lifted off.
IATA forecasts falling airline profits in 2012 amid weaker economies
Manila Bulletin
September 22, 2011
MANILA, Philippines — This early, the International Air Transport Association (IATA) expects 2012 will be more difficult for the airline industry with profits falling to $4.9 billion on revenues of $632 billion for a net margin of just 0.8%.
“It looks like we are headed for another year in the doldrums,” warned Tony Tyler, IATA’s Director General and CEO. “With business confidence declining, it is difficult to see any potential for significant profitable growth.”
Despite high oil prices and economic uncertainty, “Airlines are going to make a little more money in 2011 than we thought,” he maintained. However, given the weak global economies it won’t be much.
While airline profits may rise from the $4 billion projected in June to $6.9 billion, “We should keep the improvement in perspective. The $2.9 billion bottom line improvement is equal to about a half a percent of revenue. And the margin is a paltry 1.2%. Airlines are competing in a very tough environment,” he expounded.
IATA emphasized that despite the improvements, profitability at these levels is still exceptionally weak (1.2% net margin) considering the industry’s total revenues of $594 billion.
World trade basically stopped growing at the end of 2010. The strong travel trend in 2011 is built on residual confidence from economic optimism at the beginning of the year. While some economies may be more durable, like China, the overall outlook is for a weaker end to 2011.
Air freight stagnated since the start of the year. IATA slashed its full-year volume growth projection from 5.5% to 1.4%. Airlines are expected to carry 46.4 million tons of cargo in 2011, down from the previous forecast of 48.2 million.
Air freight volumes reached their post-recession peak in May 2010, largely driven by re-stocking. July’s traffic was 4% lower than that level. It appears unlikely that a revival in air freight will begin before 2012.
Airlines managed to restore passenger load factors back to the 2010 highs. By July the global passenger load factor stood at 83.1%. Airlines met the better than expected passenger demand with more intense asset utilization. As much of this capacity also came with belly space for cargo, the freight load factor sank to 45.0% by July.
Tighter supply and demand conditions in passenger markets over the first half of the year are expected to offset the impact of a weaker second half. As a result passenger yield growth projection remained unchanged at 3.0%.
September 22, 2011
MANILA, Philippines — This early, the International Air Transport Association (IATA) expects 2012 will be more difficult for the airline industry with profits falling to $4.9 billion on revenues of $632 billion for a net margin of just 0.8%.
“It looks like we are headed for another year in the doldrums,” warned Tony Tyler, IATA’s Director General and CEO. “With business confidence declining, it is difficult to see any potential for significant profitable growth.”
Despite high oil prices and economic uncertainty, “Airlines are going to make a little more money in 2011 than we thought,” he maintained. However, given the weak global economies it won’t be much.
While airline profits may rise from the $4 billion projected in June to $6.9 billion, “We should keep the improvement in perspective. The $2.9 billion bottom line improvement is equal to about a half a percent of revenue. And the margin is a paltry 1.2%. Airlines are competing in a very tough environment,” he expounded.
IATA emphasized that despite the improvements, profitability at these levels is still exceptionally weak (1.2% net margin) considering the industry’s total revenues of $594 billion.
World trade basically stopped growing at the end of 2010. The strong travel trend in 2011 is built on residual confidence from economic optimism at the beginning of the year. While some economies may be more durable, like China, the overall outlook is for a weaker end to 2011.
Air freight stagnated since the start of the year. IATA slashed its full-year volume growth projection from 5.5% to 1.4%. Airlines are expected to carry 46.4 million tons of cargo in 2011, down from the previous forecast of 48.2 million.
Air freight volumes reached their post-recession peak in May 2010, largely driven by re-stocking. July’s traffic was 4% lower than that level. It appears unlikely that a revival in air freight will begin before 2012.
Airlines managed to restore passenger load factors back to the 2010 highs. By July the global passenger load factor stood at 83.1%. Airlines met the better than expected passenger demand with more intense asset utilization. As much of this capacity also came with belly space for cargo, the freight load factor sank to 45.0% by July.
Tighter supply and demand conditions in passenger markets over the first half of the year are expected to offset the impact of a weaker second half. As a result passenger yield growth projection remained unchanged at 3.0%.
Wednesday, September 21, 2011
Airphil Express moves to expand customer reach
Philippine Daily Inquirer
September 21, 2011
Recognizing the opportunity offered by social media in expanding customer reach, Airphil Express introduced a round-the-clock dedicated customer support service on popular social media sites Twitter and Facebook.
Airphil Express’ 24/7 social networking presence is in line with its customer-oriented policy, not just during flights but also in the crucial before-and-after sales.
The development of Airphil Express’ customer service feature is instructive of what it takes for a brand to be receptive to the pulse of consumers. When first launched in March this year, Airphil Express provided social media customer support during office hours from 9 a.m. to 5 p.m.
Less than three months later, the servicing period was extended until 10 p.m. initially on weekdays and, later, even on weekends, which more than doubled the incoming number of comments from Twitter and Facebook users. Noting that messages asking for updates about flights especially during the rainy season were being posted in the wee hours, the airline pushed for the August launch of its “any time of the day, any day of the week” customer assistance to provide an almost real-time responses, just less than six months since the airline started the feature.
September 21, 2011
Recognizing the opportunity offered by social media in expanding customer reach, Airphil Express introduced a round-the-clock dedicated customer support service on popular social media sites Twitter and Facebook.
Airphil Express’ 24/7 social networking presence is in line with its customer-oriented policy, not just during flights but also in the crucial before-and-after sales.
The development of Airphil Express’ customer service feature is instructive of what it takes for a brand to be receptive to the pulse of consumers. When first launched in March this year, Airphil Express provided social media customer support during office hours from 9 a.m. to 5 p.m.
Less than three months later, the servicing period was extended until 10 p.m. initially on weekdays and, later, even on weekends, which more than doubled the incoming number of comments from Twitter and Facebook users. Noting that messages asking for updates about flights especially during the rainy season were being posted in the wee hours, the airline pushed for the August launch of its “any time of the day, any day of the week” customer assistance to provide an almost real-time responses, just less than six months since the airline started the feature.
Saturday, September 17, 2011
Qantas Airways to target China travelers with 5 separate airlines
Manila Bulletin
September 17, 2011
MANILA, Philippines — Qantas Airways Ltd., seeking to revive unprofitable international operations, is counting on five different airline units to win travelers in China, a country 60 times bigger than its home market of Australia.
The company is forming a premium carrier in Southeast Asia and a budget venture in Japan that will give its bases closer to China, Chief Executive Officer Alan Joyce, 45, said in an interview in Sydney Friday. The two new airlines, which begin flights next year, will add to Qantas’s existing operations in Vietnam, Singapore, and Australia.
“There is a huge opportunity for Qantas within the Asian markets,” Joyce said. Having premium and low-cost units serving China and the rest of the region is “critical,” he said.
Winning sales in the world’s most populous country is central to Joyce’s plans to turn around overseas operations now losing about A$200 million ($207 million) a year because of competition from Middle East carriers on European routes. Delta Air Lines Inc. and American Airlines also added flights to China, where international air travel may grow 11 percent a year through 2014, according to the International Air Transport Association.
“I really think it is hard to overestimate China’s potential,” said Peter Harbison, chairman of the Sydney-based CAPA Center for Aviation, an industry adviser. The country’s size and rising intra-Asia trade provide “unbelievable upside internationally,” he said.
Sydney-based Qantas, Australia’s largest airline, will order as many as 110 Airbus SAS A320s, including 78 of the revamped neo version, to support the new Southeast Asia premium carrier and the Japan budget venture. It announced the new international airlines last month alongside plans to pare flights to Europe and shed 1,000 jobs in Australia.
Qantas’s low-cost budget arm Jetstar has led the company’s growth in China by offering flights to eight cities from its hub in Singapore. The budget carrier’s Vietnam unit also plans to add China flights, Joyce said. The main Qantas airline flies to Shanghai and Hong Kong from Australia.
Chinese services now represent more than 10 percent of Qantas’s international revenue, compared with “low single digits” five years ago, Joyce said. The Dublin-born CEO founded Jetstar in 2004, four years after joining Qantas. He previously had stints at Aer Lingus Group Plc and Ansett, which was Australia’s No. 2 carrier before collapsing 10 years ago.
September 17, 2011
MANILA, Philippines — Qantas Airways Ltd., seeking to revive unprofitable international operations, is counting on five different airline units to win travelers in China, a country 60 times bigger than its home market of Australia.
The company is forming a premium carrier in Southeast Asia and a budget venture in Japan that will give its bases closer to China, Chief Executive Officer Alan Joyce, 45, said in an interview in Sydney Friday. The two new airlines, which begin flights next year, will add to Qantas’s existing operations in Vietnam, Singapore, and Australia.
“There is a huge opportunity for Qantas within the Asian markets,” Joyce said. Having premium and low-cost units serving China and the rest of the region is “critical,” he said.
Winning sales in the world’s most populous country is central to Joyce’s plans to turn around overseas operations now losing about A$200 million ($207 million) a year because of competition from Middle East carriers on European routes. Delta Air Lines Inc. and American Airlines also added flights to China, where international air travel may grow 11 percent a year through 2014, according to the International Air Transport Association.
“I really think it is hard to overestimate China’s potential,” said Peter Harbison, chairman of the Sydney-based CAPA Center for Aviation, an industry adviser. The country’s size and rising intra-Asia trade provide “unbelievable upside internationally,” he said.
Sydney-based Qantas, Australia’s largest airline, will order as many as 110 Airbus SAS A320s, including 78 of the revamped neo version, to support the new Southeast Asia premium carrier and the Japan budget venture. It announced the new international airlines last month alongside plans to pare flights to Europe and shed 1,000 jobs in Australia.
Qantas’s low-cost budget arm Jetstar has led the company’s growth in China by offering flights to eight cities from its hub in Singapore. The budget carrier’s Vietnam unit also plans to add China flights, Joyce said. The main Qantas airline flies to Shanghai and Hong Kong from Australia.
Chinese services now represent more than 10 percent of Qantas’s international revenue, compared with “low single digits” five years ago, Joyce said. The Dublin-born CEO founded Jetstar in 2004, four years after joining Qantas. He previously had stints at Aer Lingus Group Plc and Ansett, which was Australia’s No. 2 carrier before collapsing 10 years ago.
Monday, September 12, 2011
9/11 made Philippine airlines more efficient, cost-effective
Philippine Daily Inquirer
September 12, 2011
MANILA, Philippines—Exactly a decade after the country woke up to the new realities of the post-9/11 world, the hard-hit local airline industry claimed it had already recovered from the massive adverse effects of that fateful September 11 event.
According to airline executives, carriers like Philippine Airlines and Cebu Pacific have emerged stronger in the 10 years since the day that the landscape of air travel was changed forever.
But there is no denying the fact that the effects of the terror attacks on the United States continue to be felt to this day even by Filipino travelers embarking on the shortest of trips.
“The most obvious change for the industry is that it has become more expensive for everyone,” said Philippine Airlines president and COO Jaime Bautista.
In the wake of the 9/11 attacks, the international aviation industry was faced with the need to implement a major overhaul of security procedures—from installing bulletproof cockpit doors secured by electronic locks to acquiring more x-ray machines and hiring more people to man them.
According to Bautista, the impact on PAL was estimated to have cost an additional $20 million a year over the last decade. Some of these costs were borne by the passengers, while the rest had to be absorbed by the airline.
“We were able to pass on maybe around $10 million to our passengers through additional fees, but the rest we had to absorb,” he said.
The “additional costs” included higher insurance premiums that airlines had to pay for their aircraft, passengers and “third party liabilities” that could arise out of any terrorist-induced event.
“There was even a time when airlines were asking for governments to issue guarantees to insurance firms who refused to insure aircraft after 9/11,” Bautista said.
To help cushion the blow of the higher fees to passengers—at least psychologically—Bautista said airlines had to resort to the practice of “unbundling” where airline tickets would give a detailed breakdown of every single expense for clients to see.
The practice of unbundling also helped PAL save on the commissions it paid to travel agents, who would get paid based only on their airfare and not on other fees like insurance and fuel surcharges.
Cebu Pacific vice president for marketing Candice Iyog said the country’s largest budget carrier was now unbundling its fees and charges as a common practice.
“When you book on Cebu Pacific nowadays, it is automatically [set] for zero bags. But you have the option to buy baggage allowance,” Ms. Iyog said.
“If anything, we have become more efficient over the last few years,” she added.
However, for a carrier like PAL, it had to make some investments for things that would normally be shouldered by the government, such as equipment for security.
Additional costs notwithstanding, both executives from PAL and Cebu Pacific agree that 9/11 helped the industry become more efficient and cost effective—traits that helped them survive in the face of high fuel prices.
“There are positives and negatives after 9/11,” Bautista said. “But because of it, we are better prepared for the challenges.”
September 12, 2011
MANILA, Philippines—Exactly a decade after the country woke up to the new realities of the post-9/11 world, the hard-hit local airline industry claimed it had already recovered from the massive adverse effects of that fateful September 11 event.
According to airline executives, carriers like Philippine Airlines and Cebu Pacific have emerged stronger in the 10 years since the day that the landscape of air travel was changed forever.
But there is no denying the fact that the effects of the terror attacks on the United States continue to be felt to this day even by Filipino travelers embarking on the shortest of trips.
“The most obvious change for the industry is that it has become more expensive for everyone,” said Philippine Airlines president and COO Jaime Bautista.
In the wake of the 9/11 attacks, the international aviation industry was faced with the need to implement a major overhaul of security procedures—from installing bulletproof cockpit doors secured by electronic locks to acquiring more x-ray machines and hiring more people to man them.
According to Bautista, the impact on PAL was estimated to have cost an additional $20 million a year over the last decade. Some of these costs were borne by the passengers, while the rest had to be absorbed by the airline.
“We were able to pass on maybe around $10 million to our passengers through additional fees, but the rest we had to absorb,” he said.
The “additional costs” included higher insurance premiums that airlines had to pay for their aircraft, passengers and “third party liabilities” that could arise out of any terrorist-induced event.
“There was even a time when airlines were asking for governments to issue guarantees to insurance firms who refused to insure aircraft after 9/11,” Bautista said.
To help cushion the blow of the higher fees to passengers—at least psychologically—Bautista said airlines had to resort to the practice of “unbundling” where airline tickets would give a detailed breakdown of every single expense for clients to see.
The practice of unbundling also helped PAL save on the commissions it paid to travel agents, who would get paid based only on their airfare and not on other fees like insurance and fuel surcharges.
Cebu Pacific vice president for marketing Candice Iyog said the country’s largest budget carrier was now unbundling its fees and charges as a common practice.
“When you book on Cebu Pacific nowadays, it is automatically [set] for zero bags. But you have the option to buy baggage allowance,” Ms. Iyog said.
“If anything, we have become more efficient over the last few years,” she added.
However, for a carrier like PAL, it had to make some investments for things that would normally be shouldered by the government, such as equipment for security.
Additional costs notwithstanding, both executives from PAL and Cebu Pacific agree that 9/11 helped the industry become more efficient and cost effective—traits that helped them survive in the face of high fuel prices.
“There are positives and negatives after 9/11,” Bautista said. “But because of it, we are better prepared for the challenges.”
Thursday, September 1, 2011
Airphil Express flies Manila-Tacloban
Manila Bulletin
September 1, 2011
MANILA, Philippines — Airphil Express recently opened a new domestic route – Manila-Tacloban - which is expected to generate tourist interest in a culturally rich and nature abundant destination.
According to Alfredo Herrera, Senior Vice President for Marketing and Sales, the Manila-Tacloban opening flight achieved “100% load factor,” which means that every seat was occupied. The flight from Tacloban to Manila was likewise well received.
Despite having only one flight daily from Manila to Tacloban and vice versa, Herrera confirms that passengers’ traffic is building up since its inaugural flight last July 21. By October 2011, the company expects to improve its flight schedule to twice daily.
Tacloban in Eastern Visayas is home to nationally important locations such as the site of the Leyte Landing that represents a watershed episode not just in the Philippines but in world history. There is also the San Juanico Bridge, the longest in the country that spans between Leyte and Samar, and underneath it where adventurers can engage in kayaking. Those looking to experience Tacloban in a more physically charged way can engage in activities like cave exploring, mountain climbing, dipping in waterfalls, or skimboarding and surfing. Dining by the sea is a rare treat for work-weary urbanites who will enjoy relaxing in local cafés and restaurant-hopping to feast on freshly caught seafood.
“It’s about time that Filipinos got to know another special destination in the Visayas because the area is really a delight to explore. We want Filipinos to appreciate Tacloban for all the good reasons already known about the place, and the other possibilities that it can offer travelers who want to go on an adventure vacation,” Herrera says.
The new route is part of the company’s operation expansion and in promoting Airphil Express in the country as a Low Cost Carrier (LCC) therefore dominating and giving the airline market choices of air transportation that give value for money.
Frequent domestic travel is encouraged by Airphil Express’ affordable airfare deals and is in line with the thrust of the Department of Tourism. With the Manila-Tacloban route, the airline is expected to further enhance its market share in the Visayas region and
September 1, 2011
MANILA, Philippines — Airphil Express recently opened a new domestic route – Manila-Tacloban - which is expected to generate tourist interest in a culturally rich and nature abundant destination.
According to Alfredo Herrera, Senior Vice President for Marketing and Sales, the Manila-Tacloban opening flight achieved “100% load factor,” which means that every seat was occupied. The flight from Tacloban to Manila was likewise well received.
Despite having only one flight daily from Manila to Tacloban and vice versa, Herrera confirms that passengers’ traffic is building up since its inaugural flight last July 21. By October 2011, the company expects to improve its flight schedule to twice daily.
Tacloban in Eastern Visayas is home to nationally important locations such as the site of the Leyte Landing that represents a watershed episode not just in the Philippines but in world history. There is also the San Juanico Bridge, the longest in the country that spans between Leyte and Samar, and underneath it where adventurers can engage in kayaking. Those looking to experience Tacloban in a more physically charged way can engage in activities like cave exploring, mountain climbing, dipping in waterfalls, or skimboarding and surfing. Dining by the sea is a rare treat for work-weary urbanites who will enjoy relaxing in local cafés and restaurant-hopping to feast on freshly caught seafood.
“It’s about time that Filipinos got to know another special destination in the Visayas because the area is really a delight to explore. We want Filipinos to appreciate Tacloban for all the good reasons already known about the place, and the other possibilities that it can offer travelers who want to go on an adventure vacation,” Herrera says.
The new route is part of the company’s operation expansion and in promoting Airphil Express in the country as a Low Cost Carrier (LCC) therefore dominating and giving the airline market choices of air transportation that give value for money.
Frequent domestic travel is encouraged by Airphil Express’ affordable airfare deals and is in line with the thrust of the Department of Tourism. With the Manila-Tacloban route, the airline is expected to further enhance its market share in the Visayas region and
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