NEDA Board clears ₱12.75-billion Laguindingan Airport upgrade Project

21 July 2023

Philippine President Ferdinand R. Marcos Jr. has approved on Wednesday the ₱12.75-billion Laguindingan Airport Upgrade project.

In a MalacaƱang press briefing, Neda Director General Arsenio M. Balisacan announced the Board gave the go-ahead for the unsolicited proposal to upgrade, expand, operate, and maintain the Laguindingan Airport.

Balisacan said the project calls for the immediate rehabilitation of the existing terminal, and construction of a bigger terminal annex together with support facilities for 3 more aerobridges to handle seven million passengers per annum (phases 2 and 3), construction of 400 meters runway extension, parallel taxiways, and apron expansion, for a concession period of 35 years.

NEDA expects the winning bidder for the 
₱12.75-billion PPP project to be announced within the year.

Gov't Approves NAIA 170 Billion Pesos Upgrade Project


20 July 2023

Philippine President Ferdinand R. Marcos Jr. has approved the ₱170.6 billion solicited public-private partnership (PPP) proposal to rehabilitate the Ninoy Aquino International Airport (NAIA), National Economic and Development Authority (NEDA) chief Arsenio Balisacan said on Wednesday.

At a Palace briefing, Balisacan said the winning private concessionaire is required to invest in modern airport control equipment, construct Terminal 2 and 3 extensions within the next 2 years, establish new ramps, rehabilitate runways and taxiways, and connect Terminal 1-4 facilities for an in-extendible period of  15 years contract.

NEDA said the project is expected "to address longstanding issues at NAIA such as the inadequate capacity of passenger terminal buildings and restricted aircraft movement."

The rehabilitation project aims to increase the current airport capacity from 35 million passengers to at least 62 million passengers per year and increase air traffic movement from 40 to 48 per hour.

Currently, it handles 30,961,467 passengers as of June 2023. NAIA handled 47,898,046 passengers in 2019 prior to the covid19 pandemic that plagued the country which drastically reduced traffic throughput at the airport to  8,015,385 in 2021. 

The DOTr earlier floated the possibility of lengthening the concession period by including a provision that would extend it by another 10 years should the two new airports — New Manila International Airport in Bulacan and Sangley International Airport in Cavite — are delayed, but the stipulation was removed by NEDA.

The government planning agency also disapproved the solicited ₱267 billion proposal of Manila International Airport Consortium (MIAC) which is pushing for a 25-year concession period for the rehabilitation, improvement, operation and maintenance of the Ninoy Aquino International Airport, saying the proposed plan of 70 million passengers per annum in 2048 is unrealistic. The MIAC plan is also inconsistent with JICA's Mega Manila Multiple Airport system transport strategy, adopted by the government of the Philippines.

You can find the Jica transport strategies for Mega Manila here and here

United Clears Manila Hurdle

Flight Begins 29 October to San Francisco

19 July 2023

US carrier United Airlines (United) announced that it is flying back to Manila starting October 29 with direct daily flights to San Francisco using Boeing 777-300ER aircraft which offers 60 seats in the business class, 24 seats in the premium cabin, and 266 seats in economy.

United flight UA191 will depart San Francisco at 12:30am arriving Manila's Terminal 3 at 6:30am. Return flight UA 190 shall depart at 9:55am arriving San Francisco at 7:20am.

United SVP of Global Network Planning and Alliances Patrick Quayle during a July 17 media briefing said there is a “ton of traffic” between the U.S. and the Philippines. “All that traffic has to connect somewhere, or that traffic has to fly the Filipino flag-carrier.”

The carrier currently operates flights to Manila with Boeing 737-800 narrow bodies from Guam and Palau’s Koror Airai Airport.

According to Quayle, the airline application to fly Manila has been five years in the making until it was approved by Philippine regulators.

The airline flew nonstop B747-400 service between San Francisco and Manila until Feb. 20, 1998 due to the Asian Financial crisis which struck Southeast Asia in 1997 causing massive losses for its operations in the Philippines. It also flew Seattle and New York via stop overs in Seoul and Osaka until 2002 when it applied for Chapter 11 protection. 

The new flight will be the airline’s first-ever trans-Pacific service from Manila since the airline started its Manila operation in 1985 after taking over operations of Pan American Airways.

See United Airlines story in the Philippines here.

 

Philippines AirAsia To Add 19 A320s, 20 A321s

 27 June 2023


Philippine-based low cost carrier AirAsia expects to increase its fleet by nineteen A320s beginning July this year and return all remaining parked planes consisting of seven frames to service by August, according to Capital A President Tony Fernandes. 

PAA has current fleet of 15 A320 aircraft.

“We have already signed up 19 aircraft, and are negotiating for more,” Fernandes told the press at the Paris Air Show media briefing. 

“AirAsia also expects to have all 204 of its aircraft inventory reactivated by the end of August this year, and achieve 100% of pre-pandemic capacity in the coming months.” Fernandes said.

Fernandes says that he expects the first of the additional 19 aircraft to arrive in July from its fleet depot in Malaysia.

Fernandes says 362 A321-200NX are on order with Airbus, with deliveries scheduled from 2024, while long-haul AirAsia X operations would get an additional fifteen 15 widebodies (the three AirAsia X airlines operate A330-300s).

Out of the 362 A22N frames, Philippines will get “up to twenty” A321-200NY(XLR)s. He added that PAA will get 3-4 A330s out of the 15 orders, and would also begin flying into the Philippines soon, although he did not specify a timeline for this. 

Capital A’s cargo and logistics business, Teleport, is also expected to take the first of three A321Fs in July for operations also in the Philippines.

The group’s airline interests include Malaysia-based AirAsia, AirAsia X, Philippines AirAsia, Indonesia AirAsia, Indonesia AirAsia X, Thai AirAsia, and Thai AirAsia X. 

Fernandes said Capital A will also launch AirAsia Cambodia this year. 


Romero Sell AirAsia Philippines to Fernandes


5 June 2023

Philippine low cost carrier Philippines AirAsia (AirAsia) was formally sold to its parent company AirAsia Aviation Ltd. of Malaysia, controlled by business magnate Tony Fernandes for an undisclosed amount.

Philippines AirAsia (Z2), formerly known as Zest Air prior to merger with AirAsia Philippines (AAP), was controlled by F&S Holdings Inc., of Michael Romero, holding 60% share of the company, divided between Antonio Cojuanco (20%), Romero (20%) and Marianne Hontiveros (20%), while 40% was held by Capital A, formerly AirAsia Group, controlled by Malaysian magnate Tony Fernandes.

The 60% share was sold to Tony Fernandes controlled company AirAsia Com Travel (AA Com Travel Phils. Inc.), a subsidiary of AirAsia Aviation Ltd., holding company of Capital A, which owns the 40% equity share of PAA, making Tony Fernandes the sole owner of AirAsia in the Philippines.

The sale was approved by the Philippine Competition Commission (PCC) this month after the Philippine government lifted restriction to foreign ownership of airlines under the new Public Service Act (RA 11659) approved by President Rodrigo Duterte in March 21, 2022. The law took effect beginning April 1, 2023.

AirAsia operates flight to and from Manila to Puerto Princesa, Bacolod, Iloilo, Tacloban, Kalibo, Caticlan, Cebu, Tagbilaran, Cagayan de Oro, Davao, and Zamboanga. It also operates hub in Clark and Cebu using a fleet of 20 Airbus A320 aircraft as of June 1, 2023 for its domestic and international operations which includes flights to Bangkok, Singapore, Taipei, Osaka, Seoul, Hong Kong, Tokyo and Bali.

Tony Fernandes said he intends to grow the fleet to its Philippine branch to 30 Airbus A320 aircraft at the end of this year. He also proposes to introduce two (2) widebody A330 aircraft for its domestic and international operations in Cebu and Davao from its hub in Manila, as well as to international flights to Bangkok, Seoul, and Hong Kong for introduction next year.     

PAL Booked US$135 Million Net in 1st Quarter

 12 May 2023


Flag carrier Philippine Airlines (PAL) on Friday disclosed that it booked an operating income of $ 135.2 million or around P 7.4 billion in the first quarter of 2023.


PAL said this was a substantial improvement from the $33.8 million P1.7 billion logged by PAL in the first quarter of 2022.

The airline also said that its total comprehensive income hit $ 108.2 million or P5.9 billion during the period.

"The positive financial performance reflects the continuing strength of the recovery of air travel," PAL said. 

According to the airline, gross revenues hit $ 776.9 million or around P42.6 billion in the first quarter of 2023, which represented a 66.5 percent improvement from the same period in 2022, driven by a 156.2 percent increase in the number of passengers carried on PAL’s global network, the airline said. 

PAL Signs MOU for 9 A35Ks

Toulouse, 10 May 2023 – Philippine Airlines (PAL) has signed a Memorandum of Understanding (MoU) with Airbus in a deal worth over US$3 billion for the purchase of nine A350-1000s for delivery beginning on the 4th quarter (October, December) of 2025 until 2027. 

Under the Philippine carrier’s Ultra Long Haul Fleet project, the A350-1000 will be operated on non-stop services from Manila to North America, including to the East Coast of the US and Canada, replacing the Boeing 777-300ERs. (See our story here on why A35K is the next big thing for PAL)

The new aircraft will join two A350-900s already in service at the airline and currently flying to destinations in North America, Asia and Australia. PAL was forced to subleased four of its A350-900
ordered from Airbus to German Carrier Lufthansa for six (6) years, a result of its Chapter 11 bankruptcy protection which it exited in December 2021.

As with the A350-900, the PAL A350-1000s will be configured in a premium layout with separate Business Class, Premium Economy and Economy Class cabins. They will be powered by Rolls Royce Trent XWB-97.


The MOU also covers purchase rights on three (3) additional A350-1000s by 2028 for future expansion to new long-haul destinations.  

PAL did not disclosed the deal with Airbus, but listings on Axon Aviation, a London-based aircraft sales and leasing company, showed each brand new A350-1000 jets together with its pair of Rolls Royce engines and interior amenities is valued at $355.7 million, bringing the airline’s total investment to over US$3 billion. Airbus stop publishing lists price in 2019.



Captain Stanley K. Ng, President and Chief Operating Officer of Philippine Airlines, said that the range of the A350-1000 would enable the airline to fly non-stop transpacific and transpolar routes in both directions all year. 

These will include some of the longest commercial flights in the world, such as those linking the Philippines with New York and Toronto. 

"With an expanded A350 fleet, PAL will have the ability to once again provide a direct link from the Philippines to Europe," Ng said.

“The A350-1000 combines greater range capability with the higher capacity we need to serve future demand. It’s the perfect aircraft to enable PAL to meet its expansion plans in a sustainable way, while offering passengers the highest levels of onboard comfort. We are committed to offering our passengers the best possible travel experience, and these state-of-the-art aircraft will enable us to do just that as we carry out our mission to connect the world, and grow trade and tourism.” He adds.

Christian Scherer, Airbus Chief Commercial Officer, said: “Flying passengers farther and in greater comfort, the A350 brings a step-change in fuel efficiency and an immediate significant contribution to reduced emissions. These are the attributes that have made the A350 the choice of leading airlines worldwide. We look forward to working closely with our long-standing customer Philippine Airlines as it moves forward with its long haul fleet modernisation programme.”

The A350 is the world’s most modern and efficient widebody aircraft and has set new standards for intercontinental travel. It offers the longest range capability of any commercial airliner in production today and is capable of flying 8,700 nautical miles or 16,100 kilometres non-stop.

At the end of April 2023, the A350 Family had won 928 firm orders from 54 customers worldwide, making it one of the most successful wide-body aircraft ever. Some 530 aircraft are currently in the fleets of 40 airlines, flying primarily on long haul routes.

Philippine Airlines operates various Airbus types on its full service network. In addition to the A350 on long-haul intercontinental routes, PAL flies A330-300s on services to the Middle East, Australia and various points in Asia. The Philippine flag carrier also operates a fleet of A320 and A321 single aisle aircraft on its extensive domestic and regional network out of hubs in Manila and Cebu.

The MOU signed by Philippine Airlines and Airbus is not yet a final order, and aircraft type and quantity may change according to future negotiations as both fine-tune the contractual details which can take weeks or months to complete.

PAL is expected to operate a fleet of 15 Airbus A350s by 2028, with six -900s and nine -1000, exclusive of purchase rights to be acquired at a later date. 


 

Philippine Airspace To Be Close on May 17


2 May 2023

Department of Transportation (DOTr) announced Tuesday that the country’s airspace will be shut down for six hours on May 17 for maintenance schedule of its navigational equipment.

DOTr said the shutdown to Philippine Airspace will allow it to replace an uninterruptible power supply (UPS) unit of the Air Traffic Management (ATM) system installed at the Civil Aviation Authority of the Philippines complex in Pasay City.

The closure of the Philippine airspace will begin at 12 midnight and to end at 6 a.m.

Ninoy Aquino International Airport and operating airlines were notified in advance of the scheduled disruptions, and would operate early or delayed flights for this maintenance schedule.

NAIA was recently advised by the CAAP that the replacement of the UPS may take shorter than expected.

“These are all proactive efforts to, of course, make sure that the CNS/ATM (Communication, Navigation and Surveillance/Air Traffic Management) is reliable as an offshoot of what happened this year,”MIAA Senior Assistant General Manager Bryan Co said in a news conference this afternoon.

Co said MIAA, CAAP, and airport authorities across the country as well as various operating airlines will also be meeting Wednesday morning to discuss plans for the shutdown.

The MIAA is asking airlines to step up in communicating the shutdown to passengers who will be affected as their will be travel delays affecting their plans.