Qantas Flies Back MNL from Brisbane

31 October 2024

Australian flag carrier Qantas has officially restarted its route from Brisbane to Manila after ending the flight in 2014.

Flight QF97 departed Brisbane at 21:46 local time on October 28, 2024, using 296 seater Airbus A330-300 aircraft, with registration VH-EBG, arriving Manila at approximately 3:00 AM local time on October 29, 2024. Return Flight departed Manila at 5:10 AM and arrived at Brisbane airport at 2:11 PM on Tuesday.

The route will operate four times per week every Mondays, Wednesdays, Thursdays and Saturdays. The route is expected to add more than 100,000 annual seats between Australia and the Philippines, and will also improve connectivity for passengers traveling to the Philippines from Auckland, Christchurch, and Wellington in New Zealand.

The reinstated Brisbane service complements the Flying Kangaroo’s existing daily route from Sydney to Manila, and will add to what is already more than 300,000 Qantas seats to and from the Philippines every year.

Qantas will celebrate 75 years of passenger services between the two countries in 2025.

CEB Retakes 1Aviation

 30 October 2024

Low-cost carrier Cebu Pacific (CEB) has taken back majority control of 1Aviation Groundhandling Services Corp. that provides ground handling services to the airline and its subsidiaries operating several airports across the country.

In a disclosure to the Philippine Stock Exchange, Cebu Pacific’s parent Cebu Air Inc. said it has entered into a debt-to-equity conversion with 1Aviation Groundhandling Services Corp. to recapitalize the company to handle the growing demands of the airline.

The swap will wipe out previous advances and loans issued by Cebu Air to 1Aviation, amounting to P113 million, by converting them into equity, as approved by shareholders.

Cebu Air will then raise its ownership stake in 1Aviation to 60 percent once the Securities and Exchange Commission (SEC) approves the conversion. 

Currently, Cebu Air owns 40 percent of 1Aviation, while Jefferson Cheng and the Philippine Airport Ground Support Solutions Inc. (PAGSS) owns 60 percent of the shares.

After recapitalization, Cheng and PAGSS will control the remaining 40 percent in 1Aviation in replacement of the P34.23 million owed to Cheng and P2.78 million borrowed from PAGSS.

 

The airline intends to integrate 1Aviation’s services into Cebu Pacific’s to cut operational costs and enhance service quality on ground handling and logistical support. 

1Aviation, founded in 2018, operates in 34 airports, including the Ninoy Aquino International Airport, through its 6,224 employees.

CEB Connects ILO-ZAM

29 October 2024

Low cost carrier Cebu Pacific (CEB) has connected Panay Island to Zamboanga.

The flight will operate 3x weekly — on Mondays, Wednesdays, and Fridays.

5J4871 departs from Iloilo City at 4:55pm arriving to Zamboanga City at 6:05pm CEB's while its return flight departs Zamboanga at 6:40pm arriving Iloilo at 7:50pm. 

The airline inaugural flight landed tonight at approximately 7:26PM. This is the first time the two cities have been connected by a commercial flight.

Aboitiz InfraCapital Signs Laguindingan Airport Contract

28 October 2024

The Philippine Transportation Department (DOTr) has signed  the 30 years ₱12.75 Billion Concession Agreement (Operations and Maintenance Contract) for Laguindingan airport with Aboitiz InfraCapital.

Aboitiz InfraCapital recently secured a “Notice of Award” for concession to upgrade, operate, and maintain the airport in Misamis Oriental from DOTr earlier this month. 

The contract was signed by Secretary Jaime J. Bautista and Sabin M. Aboitiz, witnessed by President Ferdinand Marcos Jr. in Malacanang Palace.

The concession agreement calls for the building expansion of Laguindingan airport terminal to double the airport’s annual passenger capacity from 1.6 million to 3.9 million in the first phase of the concession, and 6.3 million by the end of the second phase, enhancing connectivity and supporting regional growth. 

The privatization will also see the expansion of Laguindingan airport’s facilities, upgrades of terminals, and more efficient delivery of services to passengers.

The concession agreement also involves the reconfiguration of existing terminal space to improve processing capacity, construction of new Passenger Terminal Building (PTB) as well as maintenance and repair.

DOTr Sec. Jaime Bautista noted that the privatization will open direct flights of other Asian carriers to Mindanao and vice versa, making Laguindingan airport an international aviation hub soon.

Aboitiz InfraCapital Inc manages Mactan-Cebu International Airport, and has also submitted an unsolicited proposal for similar concessions for airports in Bohol, Bicol, and Iloilo.

United Flies Cebu

Connects LAX

28 October 2024

US Flag carrier United Airlines (UA) flew its inaugural flight from Narita to Cebu and vice versa yesterday, paving the way for transcontinental flight to Los Angeles in the United States.

The airline will use Boeing 737-800 aircraft for the route between the Philippines and Japan and will be flown daily according to Walter Barry Dias, United Airlines Regional Director for Asia Pacific. Connecting flight to Los Angeles will be flown by Boeing 787-900.

Dias said Narita-Cebu Route is the First Fifth Freedom Route out of Narita Airport  after 7 years when it ceased hub operations out of Narita in 2017 and transferred operations at Tokyo-Haneda airport.

UA33 leaves Los Angeles at 11:00am arriving Narita at 3:45. Connection leaves Narita at 5:30pm arriving Mactan at 10:05pm. Return flight UA32 leaves Mactan the following morning at 9:30am arriving Narita at 3:15pm. Connecting flight from Narita departs at 5:45pm arriving Los Angeles at 11:40am.

United said its inaugural departure flight from Cebu carried 166 passengers, for Cebu-Narita and Los Angeles.

PAL Adds Cauayan Route

11 October 2024

Flag carrier Philippine Airlines (PAL) will add Cauayan, Isabela to its domestic network out of Manila starting January 15, 2025.

The airline will operate the daily flights to and from Cauayan utilizing 86-seater De Havilland Dash 8-400 Next Generation aircraft, withPR2018 departing NAIA Terminal 2 at 01:25 PM, arriving Cauayan at 2:30 PM. Return flight PR2019 departs Cauayan Airport at 3:25 PM, arriving NAIA at 4:40 PM.

“We will welcome 2025 with our new Manila-Cauayan-Manila service, commencing on January 15th, 2025,” said PAL Express President Rabbi Vincent Ang.

PAL Seattle Inaugural Flight

Eyes Daily Flight Soon 

 

10 October 2024

Philippine flag carrier Philippine Airlines (PAL) Boeing 777-300ER (RP-C7778) aircraft arrived at Seattle–Tacoma International Airport as two ARFF trucks sprayed welcome arch over the airliner in Washington State on October 3. PAL will fly three weekly nonstop flights (PR124 and PR125) from Manila to Seattle and vice versa every Wednesday, Friday, and Sunday.

Flag carrier Philippine Airlines (PAL) is now planning to expand the new Manila-Seattle direct flights soon, as new aircraft arrives on its fleet starting next year, according to its President, as it incites connecting travelers to Asian destinations, particularly Vietnam and Thailand.

“We are not just targeting the Filipino community, but introducing the Philippines to the rest of the world,” said PAL President Capt. Stanley K. Ng at a media briefing in Seattle.

Ng said the direct flight offers them convenience as it cuts down travel to Manila to 14 hours from 20 hours if they take a connecting flight.

The President noted that direct flight offers seamless connection to the Philippines as passengers would have the luxury and convenience of not losing their baggage during transit at a foreign airport.

PAL Vice President for Sales Salvador C. Britanico Jr. confirmed Seattle expansion, saying that while the newly-launched Manila-Seattle route already has a load factor of 80 percent to 90 percent, potential for market growth is there by making Seattle a transit point from Manila and Manila a transit point from Seattle to Asian destinations.

“We have a good partner here, Alaska Air. We also have passengers connecting via American Airlines and as well as Delta. So, Alaska Air, they fly to more than 100 destinations from here. So, it's good connectivity for us because when you land, immediately you can connect to other parts of the US and even Canada,” he noted.

“From interior US connecting here. And then also, we'll have passengers that can access Southeast Asia from here. So Seattle to Bangkok (via Manila), since we have good connections. Vietnam, Bangkok, even other parts of Asia.” adds Britanico.

The Pacific Northwest capital is home to 178,300 Filipino migrants according to US Census Bureau in 2017.

“The state of Washington has about 180,000 Filipinos. For the Pacific Northwest, close to 300,000 Filipinos. So, when we launched the flights, many of our passengers actually for the first time in many years also taking trips back to the Philippines, to Manila because it is now more convenient for them.” says Britanico.

Britanico said there is also a huge market among seafarers since there are many cruise ships departing from Seattle.

“So, we also transport a lot of Filipino seafarers and also those taking tours. The Port of Seattle is one of the major gateways for Filipino seafarers. Many of the workers on the big cruise ships are actually Filipinos coming from the Philippines. So that's one traffic especially during the summer when cruise season starts,” he said. 

 

Seattle is the fifth gateway of PAL to the United States after San Francisco, Los Angeles, Honolulu, and New York. It intends to add new destination in the US beginning in 2026 for a much delayed return flight to Chicago which has been delayed due to local airline opposition, which has now been resolved. It is also planning to add Houston beginning 2027.

 

The Philippines is allowed to fly to seven gateways in the United States under existing air bilateral agreement. 

 

Transportation Secretary Jaime J. Bautista previously said the Philippine is undergoing consultations with their US counterpart on the expansion of the Air Services Agreement (ASA) last amended in 1995.

The DoTr through the Civil Aeronautics Board is planning again to meet with their US Department of Transportation (DOT) counterpart this year, in a bid to expand gateway points beyond 7, as it hopes to open New Manila International Airport by 2028, Mr. Bautista said.

Discussions over amendments of the ASA were first introduced during the PH-US bilateral meeting on the sidelines of the 11th Asia Pacific Economic Cooperation (APEC) Transportation Ministerial Meeting on May 16, 2023, in Detroit, Michigan, as the Philippines and the US discussed mutual interest to promote air transport and expand cooperation in the aviation sector.

Cebu Pacific Buys Airswift

Ayala Sells Airline at $32 Million

7 October 2024

Low Cost Carrier Cebu Pacific (CEB) has signed agreement with ALI Capital Corp., a wholly owned subsidiary of Ayala Land Inc., to acquire full ownership of boutique airline AirSWIFT Transport Inc. for a transaction valued at P1.75 billion (US$32,250,000 million) through share purchase deal.

According to PSE disclosures, ALI stated the agreement was reached through arm’s-length negotiations, taking into consideration AirSWIFT’s aircraft lease payments, manila airport slot allocations, and rights to land at El Nido' private airport.

The share swap deal involves a one-time cash payment that will be held in escrow at Bank of the Philippine Islands, to be released once all post-closing conditions, such as approval of the Competition Commission, Civil Aeronautics Board, Manila International Airport Authority, and the Civil Aviation Authority has been met, and share price adjustments outlined in the share purchase agreement (SPA) are fulfilled.

CEB said there will be no changes in Airswift flight schedule and services, as it will simply become another airline subsidiary of Cebu Pacific, like Cebgo, bought from Southeast Asia Airlines (SEAIR).

"With this transaction, we are hopeful the expertise of Cebu Pacific will bring lower cost options and greater accessibilty to El Nido", ALI Capital President Alfonso Javier Reyes said in  a statement.

Airswift operates a pair of ATR 42-500 and thre ATR72-600 turboprop aircraft.

Cebu Pacific said the acquisition will widen their network and improve connectivity for both local and foreign travelers, helping grow businesses and local communities in key tourist hotspots.

“We are excited to play our part in increasing accessibility to local destinations that have high potential and are world-renowned for having some of the best beaches in the world," said Cebu Pacific President and Chief Commercial Officer Xander Lao.

Cebu Pacific and Ayala land previously confirmed their discussion on the sale of Airswift to Cebu Pacific as early as July 2024.

CEB Signs 152 Airbus A321neo Order

 

3 October 2024 

Low Cost Carrier CEBU Pacific (CEB) has signed the biggest aircraft purchase agreement with Airbus powered by Pratt & Whitney 1100 GTF engines Wednesday, comprising firm order of 102 aircraft, with purchase options of another 50 A321neo aircraft totaling purchase rights of 152 A321neo aircraft by 2033. 

The new acquisition order which has a minimum commitment of 70 airbus aircraft is the largest procurement in Philippine aviation history, valued at approximately US$24 billion (P1.4 trillion) based on list prices for the entire 152 aircraft order. 

The CEB order comprises the normal variant of A321neo which is highly regarded for its unparalleled economics, performance and fuel efficiency. 

"We’re confident that these additional A321neo will contribute strongly to the all-Airbus operator’s next phase of expansion as one of Asia-Pacific’s leading low-cost carriers,” said Benoît de Saint-Exupéry, executive vice-president for sales of commercial aircraft business at Airbus. 

The purchase agreement was signed in Manila by Mike Szucs, CEO of Cebu Pacific and Benoît de Saint-Exupéry, EVP Sales of the Commercial Aircraft business at Airbus.

Cebu Pacific CEO Michael Szucs said Airbus would deliver the initial batch of A321neos in 2029. The European plane maker aims to complete all of the commitments in 2033, and from there, Cebu Pacific may tap its purchase rights to order more.

Szucs said most of the aircraft would be assigned to serve flights from New Manila International Airport if the gateway is operational by the time the ordered jets begin coming in.

Beyond its Manila network, Cebu Pacific intends to expand its fleet by establishing hubs in Clark,  Cebu  in Davao, Iloilo and Cagayan de Oro.

The airline will still receive 22 new Airbus aircraft, six of them comprising wide-bodies,  spread for delivery until 2028.

Szucs said Cebu Pacific is currently strengthening its hub in Cebu, Davao, and recently Iloilo. 

CEB said it would source the pre-delivery payments from its own equity while they intend to tap the lessor market to settle the bill under sale-leaseback transaction when they arrive in 2029.

Currently, the airline operates nine A330s, 40 A320s, 23 A321s and 15 turboprops in its fold, excluding 5 ATR aircraft operated by Swift Air which it recently acquired.