New Tacloban Terminal to rise

DBM tenders P800 Million for Tacloban terminal

September 16, 2012

The Department of Budget and Management (DBM) has released funds for the construction of new passenger terminal building at Tacloban airport says Budget Secretary Florencio Abad. 

DBM already earmarked P4.6 billion for key DOTC airport projects including improvements to Ninoy Aquino International Airport Terminal 1 costing  1.64 billion, and another 2 billion for completion of Daraga Airport.

Meanwhile, the Department of Transportation and Communications (DOTC) is bidding out three contracts worth about P24 million for feasibility studies on the proposed Bukidnon airport and the upgrade Surigao and Naga airports.
 
P7.47 million has been earmarked for the feasibility study on the upgrade of the airport in Surigao City and another P7.25 million for a study on the upgrade of the airport in Naga City.

Patrick Tan Takes Over Seair

Zapanta heads subsidiary


September 15, 2012

Low cost carrier South East Asian Airlines (SEAIR) has appointed Patrick Tan as President and Chief Executive Officer of Tiger affiliate Southeast Asia Airlines (SEAIR) replacing Avelino Zapanta who will now head Seair International (SEAIR I), a new company created to serve missionary routes.

“This deal represents a significant step forward for Seair and will allow the airline to continue its tremendous growth and job-creation drive for Filipinos, bringing increased prosperity, highly-skilled jobs and tourism to the country,” newly appointed CEO Patrick Tan said in a statement.

 
He added that Zapanta, who was “instrumental in helping Seair grow into the airline that it has become today, will continue to share his expertise and wealth of experience in his new position as senior adviser to Seair.”

Zapanta has contributed over six years of his career to bring this transaction to a close and secure a proper succession with the appointment Tan as Seair’s new chief.

“Mr. Zapanta will head SEAIR I. He will be the president of Seair I. We believe he could continue to head an airline such as Seair I since he had been with Seair Inc. before,” Greek-American Nikos Gitsis, one of the founders of Seair Inc., said in interview with Businessmirror.

Tiger Airways completed the purchase of a 40-percent stake in Southeast Asian Airlines.

Gitsis and Iren Dornier sold a combined 40-percent stake in Seair Inc. to Singapore’s budget carrier Tiger Airways for $2.5 million but lending the airline $40 million more in investment over a five-year term.

“We started a new airline called Seair International which is owned by me, Dornier, Tomas Lopez and  Geraldine Olivares. We will reposition the airline to serve missionary developmental routes and one of the things we want to do is to relaunch the Batanes flight because we removed that from Seair Inc.,” said Gitsis.

Seair I will take over the leisure routes of Seair Inc. which has now been transformed as a budget carrier. It will fly to destinations where bigger commercial planes could not land using its existing fleet of three Dornier 328s and one LET 410UVP-Es.

Gitsis said Seair I will purchase two more LET 410s next year to be able to serve more flights going to Batanes and Palawan.

“We plan to expand the fleet and position the aircraft to service missionary destinations like inter-Palawan, including Puerto Princesa-El Nido, Busuanga, Puerto Princesa-Taytay, Puerto Princesa-Cuyo, among others.  We will keep Batanes and also focus on Palawan,” added Gitsis.

Seair I is waiting for the issuance of an Air Operator Certificate (AOC) from the Civil Aviation Authority of the Philippines (CAAP) before the relaunch targeted in the last quarter of this year.

“We already secured a CPCN [certificate of public convenience and necessity] from the CAB [Civil Aeronautics Board] and we are just waiting for the CAAP to issue our AOC. We will start operating Seair I by October or November this year. We have pilots and staff good and ready to go. Mr. Zapanta will come back,” said Gitsis.

Tan was previously vice president for commercial affairs before he became Chief Operating Officer, and was responsible for growing SEAIR revenues from PHP 200 million per year to PHP 1 billion per year. He was in charge of SEAIR sales and marketing activities for seven years, overseeing company relations with over 200 travel agents across the globe.

Tan is also a trustee and vice president for external affairs of Boracay Foundation Inc., an influential business group for the conservation of the famous island destination, and serves as a consultant to the board of the Flying Medical Samaritans, and is a sailing member of the Manila Yacht Club. A certified private pilot, he is also a member of the Aircraft Owners and Pilot’s Association (AOPA – Philippines).

Tan earned a Bachelor of Science in Applied Physics from Ateneo de Manila University and a Bachelor of Science in Business Management, Major in Marketing, from De La Salle University.

Seair operates a fleet of two A319's and three A320's as it flies to Bacolod, Cebu, Davao, Iloilo, Puerto Princesa, Tacloban, and Kalibo, while its three turboprop D-328 flies Batanes, Palawan and Caticlan. The airline operates international routes out of Clark to Hong Kong, Singapore, Bangkok, and Kota Kinabalu.

“Our target is to have 10 Airbus fleet within three years or less.” says Tan.-- with reports from Stella Arnaldo and Lenie Lectura.

PPS New Terminal to rise

As Gov't approves $71.6 Million PPS Airport Project


September 13, 2012


The government of the Philippines through Finance Secretary Cesar V. Purisima has signed an agreement with South Korea represented by Chairman and President Yong Hwan Kim of Korea's Export-Import Bank for a $71.6-million loan to construct the new Puerto Princesa airport terminal project under Seoul’s Economic Development Cooperation Fund (EDCF) as Public-Private Partnership (PPP) projects falters in favor of the ODA financing recommended by Transport Secretary Mar Roxas. (Read our 2009 Story)

Puerto Princesa airport will have its runway expanded and new taxiway developed for the construction of a new and bigger passenger terminal building with gate facilities under the official development assistance (ODA), worth 3.3 billion pesos. The Government of the Philippines will shoulder the remaining 1 Billion Pesos as counterpart funds to be sourced in the GAA for the duration of the project.

A new ramp and control tower will also be constructed for the said project together with installation of navigational aids to accommodate increased domestic and international flights. A new access road will also be build to service the terminal which is expected to handle 3 million passengers.

The airport is a priority infrastructure project of the Aquino administration, in preparation for the increase tourists arrival in the city after Puerto Princesa Underground River basin was included as one of the New 7 Wonders of Nature.

The loan agreement will be payable in 40 years and with a 10-year grace period with an interest rate of 0.1%. Construction is expected to begin within the year for completion in 2015.

Engineering works was provided by Price Waterhouse and Cooper International.

C-27J Spartan to join PAF

As Indonesia wins procurement for a spy plane



September 11, 2012

The Department of National Defence has selected Italy to supply three medium-sized military transport aircraft manufactured by Alenia Aeronautica, while Indonesia was awarded  the long-range maritime patrol and surveillance plane, says Peter Paul Galvez, DND spokesman.

"It is just a matter of approval now by the President" says Galvez. Once President Aquino approves the acquisition, the planes would strengthen the country’s air force and heightened navy's maritime domain awareness.


The Alenia C-27J Spartan is a medium-sized military transport STOL aircraft built by Alenia Aeronautica having the same engines and systems of the Lockheed Martin C-130J Super Hercules.

The C-27J was selected because of its communality with existing C-130 frames of the Philippine Air Force thereby minimizing cost for maintenance procedures, and at the same time training personnel for future C-130J acquisitions.


Meanwhile, CASA/IPTN CN-235 MPA is a medium-range twin-engined transport plane that was jointly developed by CASA of Spain and Indonesian manufacturer IPTN, part of Airbus Military, as a regional airliner and military transport. Its primary military roles include maritime patrol, surveillance, and air transport.

CN-235 MPA was chosen because of its ability to stay in the air longer which is good for maritime surveillance and its capability to double as a military transport. Its rear ramp access made the choice easier compared to the ATR-42MP says the DND spokesman.

The CN-235 MPA can be fitted with the Seaspray 4000 radar from BAE Systems, the AN/APS-134 from Raytheon or the Ocean Master 100 from Thales. DND did not disclose what radar they will fit in the plane.


“The long-range patrol aircraft would be devoted solely to conducting maritime surveillance.” says Galvez.

The surveillance plane has a crew of two, a pilot and co-pilot, and can carry 44 passengers and a payload of 13,120 pounds with a cruising speed of 454 kilometers per hour and a range of 2,730 nautical miles.

Philippine carriers see huge opportunities in China

Once restrictions are lifted

September 11, 2012
Philippine carriers expect to significantly expand their China operations over the next several years and remain confident in the opportunities in the Chinese market despite a current government warning on holidaying in the Philippines. Philippine low-cost carriers – including AirAsia Philippines, Cebu Pacific, PAL Express/AirPhil Express and Zest Air – are poised to be the largest beneficiaries from increasing demand in the Philippines-China market.

In recent years an influx in charters has catered to a large portion of the growth in the Philippines-China market. But charters between the two countries have stopped operating in recent months due to a Chinese government warning against travel to the Philippines, an unfortunate politically-motivated byproduct of the dispute over the Scarborough Shoal in the South China Sea. The return of charter operations and a significant increase in scheduled flights are expected once the warning is lifted.

There are currently about 11,000 one-way scheduled seats per week in the Philippines-China market, down about 15% from May-2012 when China first issued its warning against travelling to the Philippines following a naval standoff with the Philippines around the Scarborough Shoal. Philippine carriers account for nearly three-quarters of capacity in the market. Philippine Airlines (PAL) is the largest carrier, accounting for 37% of current capacity between the Philippines and China.

Cebu Pacific is the second largest carrier in the Philippines-China market, accounting for 27% of total capacity. A second Philippine LCC, Zest Air, also serves mainland China but only accounts for about 9% of total capacity in the market. China Southern currently accounts for about 21% of capacity in the Philippines-China market while Air China accounts for the remaining 6%, according to Innovata data.

PAL currently serves Beijing, Shanghai and Xiamen from Manila while Cebu Pacific serves Guangzhou, Beijing, Shanghai and Xiamen (launched in Mar-2012). Zest serves Shanghai and Quanzhou (launched in May-2012, giving Qanzhou Jinjiang Airport its first scheduled international service). From the Chinese side, China Southern serves Manila from Guangzhou and Xiamen while Air China only links Manila from Beijing.

Philippines to China capacity (one-way seats per week) by carrier: 10-Sep-2012 to 16-Sep-2012
 Carrier Routes and weekly seats Total weekly seats and capacity share
Philippine Airlines Manila-Beijing (750)
Manila-Shanghai (2114)
Manila-Xiamen (1201)
4065 (37%)
Cebu Pacific Manila-Beijing (716)
Manila-Guangzhou (537)
Manila-Shanghai (1253)
Manila-Xiamen (450)
2956 (27%)
China Southern Manila-Guangzhou (1022)
Manila-Xiamen (1253)
2275 (21%)
Zest Air Manila-Quanzhou (504)
Manila-Shanghai (504)
1008 (9%)
Air China Manila-Beijing (656) 656 (6%)

Philippines-China was a large charter market before Scarborough Shoal conflict

PAL, Zest and Cebu Pacific also operated frequent charters into China prior to May-2012, when Chinese tour companies cancelled their charter programmes as a result of the travel warning. Most of the charters operated to airports near beach resorts (such as Kalibo) rather than Manila. The warning has also significantly impacted demand and profitability on scheduled routes, according to executives at Philippine carriers.

The PAL Group's LCC subsidiary, AirPhil Express (which later this year will readopt the previous brand PAL Express), also operated flights to China prior to the onset of the current crisis in May-2012. PAL Express will likely resume flights to the country once tensions ease and would be the logical brand for adding destinations in China that are not served by PAL mainline given AirPhil/PAL Express’ leisure focus and all-economy configuration.

While Philippine carriers would be interested in increasing capacity to major Chinese cities, slot and traffic right restrictions will likely limit any growth in Beijing, Shanghai and Guangzhou to up-gauging existing flights. Cebu Pacific, for example will be able to more than double capacity on its Beijing and Shanghai services by switching from Airbus A320s to Airbus A330s, which it will start taking delivery of in mid-2013. But the real opportunities are in secondary Chinese cities.

Cebu Pacific CEO advisor Garry Kingshott told CAPA's LCCs & New Age Airlines in North Asia conference on 06-Sep-2012 that “the opportunities in China and Chinese secondary cities are enormous. They will sustain many more operations for years to come as disposable income comes up and they are allowed to travel.”

Also speaking at the conference, Zest CEO advisor Brian Hogan cited Xian and Chengdu among the many secondary Chinese destinations which can potentially support LCC service from the Philippines. “When China opens up oh my goodness you could put a 1,000 airplanes in and out of there ... there’s people everywhere. They want to travel,” Mr Hogan said.

AirAsia Philippines seeks China traffic rights

New LCC AirAsia Philippines is also keen on the mainland China market and has already applied for traffic rights to China. AirAsia Philippines launched services in Mar-2012 and now operates domestic as well as international flights to Kuala Lumpur, Hong Kong and Macau.

AirAsia Philippines could launch flights to mainland China as early as 2013, at which point it is hoped that the current travel warning will no longer be in place. AirAsia Philippines will seek to serve points in mainland China which are already served by other AirAsia affiliates. The AirAsia Group now has seven destinations in mainland China – Beijing, Chengdu, Chongqing, Guilin, Guangzhou, Hangzhou and Shenzhen. Guangzhou and Shenzhen are served from both Kuala Lumpur and Bangkok while Beijing, Chengdu, Guilin and Hangzhou are served from Kuala Lumpur and Chongqing is served from Bangkok. Four more mainland China destinations are to be added in the coming months – Nanning, Kunming, Xian and Wuhan.

AirAsia’s large presence in China through its affiliates in Malaysia and Thailand could give AirAsia Philippines an advantage as Philippines-China becomes a hot market. AirAsia Philippines will not have to spend as much to launch and support new services to secondary cities in China as its competitors because it can leverage the existing services of AirAsia X, AirAsia Malaysia and Thai AirAsia. Being affiliated with a well known pan-Asian brand will also help AirAsia Philippines market any new service to Chinese residents, which would account for the overwhelming majority of passengers on any new Philippines-China route.

Limited domestic opportunities prompt Philippine LCCs to look towards North Asia

Most Philippine LCCs now see more opportunities in the international market than domestically given the intense competition and overcapacity that is plaguing the domestic market. There are currently five LCCs operating domestically in the Philippines – market leader Cebu Pacific, AirPhil Express (soon to be rebranded PAL Express), Zest, SEAir and AirAsia Philippines. SEAir launched a new LCC operation covering domestic trunk routes in late Jul-2012 with support from new part-owner Tiger Airways.

AirPhil, AirAsia Philippines, Cebu Pacific, SEAir and Zest will all likely focus medium-term expansion on the international market, particularly China and other north Asian destinations. “North Asia to me is mecca,” Zest’s Mr Hogan tells CAPA. “I’m not excited by the domestic market.”

Of all the international markets from the Philippines, China offers the biggest potential opportunities as most other short-haul international markets such as South Korea, Hong Kong, Singapore and Malaysia are already well served by LCCs. (There are opportunities in Japan – which is only served by one Philippine LCC, Cebu Pacific, with only one destination – but all Philippine carriers have been barred by Japanese authorities from adding capacity until the Philippines can pass an ICAO audit.)

Top five international markets from the Philippines based on capacity (seats per week): 10-Sep-2012 to 16-Sep-2012
Market One-way seats per week
Hong Kong 36,284
South Korea 30,710
Singapore 29,061
Japan 21,364
China 10,960
South Korea is already now the largest source of visitors to the Philippines. There are currently just over 30,000 weekly one-way scheduled seats between South Korea and the Philippines and during peak periods there are up to 40,000 weekly seats. (Hong Kong is the largest international market from the Philippines based on capacity but South Korea is a larger source of visitors.)

There is also a huge charter market between the Philippines and Korea. Most of the charter flights operate to and from Kalibo, which is the closest international airport to the popular resort island of Boracay (about 90 minutes by bus). Mr Hogan says Zest currently operates 32 charter flights per week to Korea and Korea accounts for 25% to 30% of the carrier’s total business (Zest also currently operates 18 weekly scheduled flights between Korea and the Philippines).

Charters to Korea help Philippine LCCs as well as PAL improve their aircraft utilisation as the flights are almost always operated in the middle of the night using A320s which are used primarily in the domestic market. (LCCs also operate some international scheduled flights late at night and early in the morning but these only utilise a small portion of their fleets.)

PAL and the LCCs are keen to offer more scheduled flights to Korea and China as scheduled flights are potentially more lucrative than charters. While charters are low risk because the tour companies cover the cost of the flights, the margins are typically low and the tour companies are charging a lot more than LCCs would charge for the same seat. For example while Zest will continue to look to grow its Korea charter business, adjusting its model to accommodate the request of Korean tour companies such as in-flight meals, it is also keen to expand its scheduled operation into Korea and will launch a daily flight from Clark Airport outside Manila to Seoul Incheon in Oct-2012. The addition of Clark-Seoul will give Zest five scheduled routes to Korea along with Cebu, Manila and Kalibo to Seoul and Kalibo-Busan.

China could become the Philippines largest market

Philippine carriers believe the China market could eventually overtake South Korea although it is now only one third the size. While there are only two cities in Korea with scheduled service to the Philippines, Busan and Seoul, there are dozens of Chinese airports that can potentially support service to the Philippines. Chinese regional airports are also seen as more aggressive in recruiting foreign LCCs than airports in Korea or Japan.

Nearly all of China is within the range of narrowbody aircraft from the Philippines, opening up opportunities in every region of the fast-growing country. Mr Kingshott points out that the Philippines is uniquely positioned to benefit from the expected boom in China outbound tourism as the Philippines is the closest tropical destination to China.

For now however Philippine carriers have to be patient and wait for the Philippine-China relations to improve before exploiting the huge opportunities in the Chinese market. So far there have not been many encouraging signs since the Scarborough Shoal conflict began in Apr-2012. But Philippine carriers remain optimistic that the China travel warning will be lifted sooner rather than later. Once it does, rapid growth will almost certainly ensue and China could eventually become the largest source of tourists for the Philippines.

5J, Z2 Cleared for UAE landing

CAB rules ends PR code-shares to EK and EY


September 10, 2012


The Civil Aeronautics Board (CAB) concluded new Air Service Agreement (ASA) with the United Arab Emirates providing additional 14 flights to the Emirate Kingdom.

CAB Executive Director Carmelo Arcilla said UAE agreed to increase entitlements from the current 14 flights per week to 28 flights for each side between Manila Abu Dhabu, and Dubai.

Abu Dhabi has 7 entitlements being used by flag carrier Etihad and Dubai has 7 entitlements used by flag carrier Emirates to Manila, while the other 14 entitlements was solely held by flag carrier Philippine Airlines (PAL). Both airlines have code-share relationship with PAL allowing them to fly a total of 28 flights a week to Manila using Boeing 777-300ER planes.

The new ASA allowed both Emirates and Etihad 7 more flights entitlements each per week to both Dubai and Abu Dhabi, respectively, while the other new 14 entitlements are to be shared by Cebu Pacific (CEB), Air Philippines, and Zest Air for rights to Dubai and Abu Dhabi. 

The new frequencies firms up Cebu Pacific and Zest Air’s plan to mount long-haul flights to UAE next year from Manila.The remaining 14 rights is held by Philippine Airlines which it said would also be used by them next year.

Arcilla said they would likely award seven UAE entitlements to Cebu Pacific and another seven to Zest Air.

Air talks were held in Abu Dhabi in Sept. 5 and 6, amending the previous ASA's both countries last negotiated in 2009.

Also agreed in the air talks were unlimited traffic rights between points in the Philippines and the UAE, except Manila, in accordance with Executive Order 29 (EO29), otherwise known as the "Civil Aviation liberalization policy" of the Aquino administration.Under EO 29, the Third, Fourth, and Fifth Freedom of the air Rights are allowed, except Manila subject to reciprocal rights.

The two delegations agreed to confirm the designation of Emirates Airline , Etihad Airways , Air Arabia , RAK Airways and Fly Dubai as National Carrier from UAE Side, while the Philippines designated Philippine Airlines, Cebu Pacific, Zest Air and Air Philippines as National Carriers.


The agreement was signed by UAE's General Civil Aviation Authority (GCAA) Deputy Director General Omar Bin Ghaleb and Undersecretary Jose Perpetuo M. Lotilla of the Department of Transportation '&' Communications in the Philippines.

Representatives from Abu Dhabi Department of Transport, Dubai Civil Aviation Authority, Sharjah Department of Civil Aviation, Ras Al Khaimah Department of Civil Aviation, Etihad Airways, Emirates Airline, Air Arabia and RAK Airways attended the negotiations.

According to the ASA, both parties agreed for 28 weekly frequencies for each side to/from Manila, 14 of which is divided between Dubai and Abu Dhabi, Forty two (42) additional weekly frequencies for each side to/from Clark International Airport, Twenty one (21) additional weekly frequencies for each side to/from Cebu International Airport; and unlimited weekly frequencies for each side to/from other airports in the Philippines.

The designated airlines of the UAE shall have the right to exercise full fifth freedom traffic rights only up to fourteen (14) weekly frequencies between any intermediate point(s) and Diosdado Macapagal International Airport (Clark) only, and any point(s) beyond, except Japan, the USA and Canada.

The designated airlines of the Philippines shall have the right to exercise full fifth freedom traffic rights only up to fourteen (14) weekly frequencies between any intermediate point(s) and any one point in the UAE only, and any point(s) beyond, except the United Kingdom, Saudi Arabia and Kuwait.

Arcilla also said PAL may have to end its code share relationship with Emirates and Etihad next year after the latest ruling of CAB requiring them to service the route or lose entitlements to the UAE. In the application hearing of CEB, PAL promised to reintroduce Dubai and Abu Dhabi to its route network by next year in exchange for not recalling its issued entitlements.

Cebu Pacific has filed before CAB a reconsideration to its earlier order denying CEB UAE entitlements. The airline earlier requested the agency to recall PAL’s flight entitlements to the UAE as the airline stopped direct flight there. It argued that since PAL is no longer mounting direct flights, CAB should reallocate entitlements to other airlines. CAB dismissed the case adopting PAL's argument that they are still flying UAE on code-share arrangement with UAE airlines Etihad and Emirates Airlines.

Arcilla said the motion for reconsideration filed by both Cebu Pacific and PAL is still pending with the board.  PAL seeks reconsideration on CAB's order requiring it to service the route or lose entitlements.

“There is no final decision yet,” he said.

For Emirates, termination of code-share relationship with PAL is not seen to make a dent on its drive to grow the market with its new entitlements, although it will affects the plan deployment of its A380 to Manila which capacity is dependent upon PAL's right. The airline is expected to continue flying Manila twice daily without PAL.

Etihad on the other hand says that it will maintain its frequency of two daily flights from the grant of additional seven rights although hints introduction of third daily flight should CAB's earlier order be reconsidered.

Philippine Airlines is expecting deliveries of four 240 ton new generation Airbus A330-300 in 2013 for services to the Middle East and Australia. The high-gross weight (HGW) A330 variant is capable of direct flights to all parts of Saudi Arabia and to as far as Istanbul in Turkey, fully loaded according to disclosures by Airbus.

CAB will also conduct air service negotiations with the Kingdom of Saudi Arabia on Sept. 24 and 25.
Earlier talks with Singapore on Aug. 15 and 16, and Australia on Aug. 28 and 29, bogged down amidst reluctance by the Philippine panel to offer unlimited fifth freedom rights proposal by Singapore and Australia. 

“They want Fifth Freedom so they can pick up passengers in Japan, Korea and China. Our airline thinks this request is negotiated on the basis of reciprocity of balance. Australia's beyond rights apply only to New Zealand, while Singapore offers Australia and limited rights to Indonesia. We agreed however to add more frequency after all entitlements are used up,” Arcilla said.

The country also had unsettled air talks with Indonesia and Taiwan.Indonesia still maintain restrictive aviation policy while Taiwan wants additional seat entitlements to the country despite existing unused entitlements.

Bulacan, Maybe?


$500-M new PAL airport sets off guessing game

September 2, 2012

By Recto L. Mercene

WHEN Philippine Airlines (PAL) President Ramon S. Ang announced before the weekend that they will build a $500-million airport as an alternative to the congested Ninoy Aquino International Airport (Naia), he did not say where the new facility would be located but hinted that it would be about 15 minutes away from the Ayala business center in Makati City and would sit on a 2,000-hectare property.

Why the secrecy? Is it because he does not want speculators to grab surrounding real estate, whose value would zoom to the skies, and make real-state dealers instant millionaires?

Ang’s conundrum sent the media into a guessing spree.

Try as we can, we could not envision a place that is that big, or wide enough to accommodate an airport complex, with two runways that could handle 150 flights per hour.

Ang said the site for the $500-million airport could accommodate up to four runways, and that they would present their plan to President Aquino in January or February next year.

A source helped us figure it out where the PAL president could be coming from, telling the BusinessMirror over the weekend that the new $500-million PAL airport might find a home in Binangonan, Rizal.

The highly reliable source said the coastal town of Binangonan figured in a study made by the National Economic and Development Authority (Neda) almost 10 years ago as a possible site for a new modern airport. He added that nothing much about the study has been heard since.

The source said the possible site has an area of a little more than 2,000 hectares. He could be referring to a 2,170-hectare property in Bina­ngonan that belongs to IRC Properties Inc.

According to the IRC web site, the property lies about 20 kilometers east of Metro Manila in what is “envisioned to be the next growth corridor, where major business and economic activities would take place.”
The company has prepared a master plan for the land.

Its web site said, “The plan, formulated by Palafox and Associates, draws up a multiple land-use program characterized by a balanced and [complementary] mix of industrial, agro-industrial, commercial, residential, recreational and institutional projects. Feasibility studies, architectural and engineering plans for the low- and medium-cost housing projects have also been prepared.”

But, IRC said, a “very weak and greatly affected real-estate market continuing up to 2002” prompted it to suspend “development and clearing activities” until the property market becomes active again.

The first thing that came to mind as to where the new airport facility will be built was not Binangonan but Sangley Point in Cavite, home to the Air Force 15th Strike Wing. It is about 15 minutes away from the Ayala business center by helicopter, it has an existing runway built by the American military, and a little reclamation of Manila Bay would increase its present 140 hectares to one that could equal Hong Kong’s Chep Lap Kok Airport, or Singapore’s Changi International Airport.

Sangley is one of the few remaining military assets, out of the 23 facilities that the Americans left when they withdrew from the Philippines in 1991. It used to be the home of a squadron of P-3 Orion “submarine hunters.”

The other former US facilities are Clark Air Base, now the Diosdado Macapagal International Airport; Subic Naval Base, now the Subic Bay Metropolitan Authority; and Mactan Air Base, now the Mactan-Cebu International Airport.

Civil Aviation Authority of the Philippines (Caap) air-traffic controllers from the Ninoy Aquino International Airport (Naia) exercise jurisdiction over Sangley air traffic, so there is no conflict at all regarding their simultaneous operations.

A newspaper reader suggested that since the Philippine Reclamation Authority (PRA), formerly the Philippine Estate Authority (PEA), is reclaiming 635 hectares of Manila Bay, the money spent could be used to realign the reclamation so that a modern airport could be built at the Naic, Cavite, side and spare the Las Piñas-Parañaque Coastal Lagoon, where a bird sanctuary is located.

The reader said, “Sangley’s 138 hectares, plus the planned 635 hectares to be reclaimed, will be a little bigger than half of Changi in Singapore and that of Chek Lap Kok in Hong Kong.”
A total area of 773 hectares is more than enough to host a modest but modern, safe and accessible airport of world standard, the reader opined.

The reader said that half of the present facilities of the Manila International Airport Authority (Miaa) can be operated as a domestic airport and half as a commercial center to complement Megaworld.

“To avoid traffic congestion, the domestic airport must be linked to Sangley from Terminal 3 via Pagcor Entertainment City by a monorail on a viaduct or a tunnel. Fast-craft ferries can double as Manila Bay Tour and serve the transportation needs of the new airport from the Mall of Asia harbor, which could also be developed into a central transport terminal for the convenience of passengers.”

Several other groups earlier suggested turning Sangley Point as alternative to the Naia, but the government simply would not listen.

Newly appointed Interior Secretary and former Transportation top honcho Manuel Roxas II said during his stint at the Department of Transportation and Communications that Sangley Point cannot be a viable alternative to the Naia.

According to Roxas, expanding Sangley Point airport to allow the layout of another parallel and independent runway would entail reclamation of a huge swath of Manila Bay in Manila and Cavite.

“Sangley is probably going to be a single-runway facility for GenAv [general aviation],” he said, adding that reclaiming a large tract would only equal the area now occupied by the Naia, which proves to be “too small to allow two parallel and independent runways.”

Roxas said Clark is still “the long-term alternative” with its available 2,000 hectares that could accommodate up to three parallel independent runways.

Making Clark airport as the main gateway, however, requires a fast rail access to Metro Manila.
This is the same objection voiced by Ang, who said plans for a $10-billion fast train to connect Makati and Clark is not practical.

Since Sangley remains a poor choice, that leaves the 2,000-hectare San Miguel property in San Jose City, Bulacan, the best alternative for an international airport, according to an airport source.
The source said that for years, it is a little-known secret that San Miguel has been offering its San Jose City, Bulacan, property as an alternative airport to the then-Air Transportation Office  (ATO), Caap’s forerunner. But nothing came out of it after the ATO was abolished.

There are certain problems that would have to be addressed before the runways are built, but knowing that Ang appears to enjoy a degree of closeness to the Aquino administration, these problems are “not insurmountable,” the source added.

Constructing an airport complex, including the runway, is not just building any infrastructure.
The source said that normally, a 10-year compilation of the site’s wind direction and velocity, rainfall, precipitation and several other weather parameters would have to be studied, in order to determine the runway’s feasibility and eventual layout.

“What good is a runway if most of the year, the airport is drenched with rain, has poor visibility, adjacent to mountains or man-made obstacles? What if airplanes are buffeted by strong crosswind during landing and takeoff?” he asked.

As an example, the source pointed out that the east-west layout of the Naia is not accidental. It is also not an accident that it is located where it is now, when Metro Manila is usually drenched by rain, and yet the airport is usually rain-free in more days than other places in Metro Manila.

The Naia runways straddle the Pasay City-Parañaque City area and is usually affected by the northeast monsoon and the southwest monsoon or habagat, blowing almost equally from the northeast and southwest directions during the year.

The source, an aviation expert, said airplanes sometimes take off toward Antipolo, Rizal, in a northeasterly direction using Runway 06. “060” degrees is the northeasterly bearing of Runway 06 starting from the Parañaque side toward Antipolo, while airplanes taking off on Runway 24 on a southwesterly direction, hence the bearing is 240 degrees, starting from the South Luzon Expressway side toward Parañaque.
That is how Runway 06-24 is named, the source said.

But why is there a Runway 13-31 running in the north-south direction?

The airport expert said in the early days of aviation, when most airliners are small, airplanes have to land and take off directly into the wind because they could not handle strong crosswinds, so the choice was either Runway 06-24 or Runway 13-31, depending on the wind direction and velocity.

Today, jumbo jets can withstand 15-knot crosswinds, which would sweep off the runway smaller airplanes.
Another obstacle that Ang had to face is an existing CAAP regulation that says no international airport should be built within 24 kilometers of an existing international airport.

San Jose City, Bulacan, if this is where Ang’s airport is finally built, sits at the south side of the province and shares a common boundary with Metro Manila and Rizal. It is yet to be determined whether it is within the 24-kilometer-limit of the Diosdado Macapagal International Airport (DMIA).

The aviation expert, who said a long study was needed before any new airport could be built, noted that it is now the norm for private firms to run an airport complex. Formerly a ranking Caap official, he also cited findings showing that government-run airports could not keep up with developments and usually run into red ink, unless subsidized by the government.

Although Changi in Singapore and Chep Lap Kok in Hong Kong are run by government-owned and -controlled corporations, the expert said, airports in New Zealand, Australia, Malaysia, Vietnam, Germany (Frankfurt Airport) and many others are privately operated and proved to be financially successful.

A version of this article appeared on September 1, 2012 edition of the Philippine Business Mirror, with the headline: $500-M new PAL airport sets off guessing game.

PAL flies Toronto

Direct Flight Commences November 28


September 1, 2012

Flag carrier Philippine Airlines is re-introducing flight to Toronto direct from Manila starting November 28, 2012, says PAL president Ramon S. Ang.

PAL recently obtained authority from Canadian government to fly to Toronto, amidst FAA restriction down south of the border.

Toronto is Canada's largest City with a population of 2.6 million.

PAL will fly from Manila to Toronto thrice a week every Monday, Wednesday, and Friday, using its latest plane, the Boeing 777-300ER. Meanwhile, Vancouver will have its frequency reduce pending negotiations with Canada's Department of Transport for additional entitlements to the west coast good for daily flights. 

Vancouver will have direct flights four times a week every Tuesday, Thursday, Saturday and Sunday via Boeing 777-300ER from Manila while flights to Las Vegas will fly direct starting November 2012 thrice a week using Airbus 340-300 planes.

Ang also said that they will introduce premium economy seating and full-flat seats in its business class section of its upcoming 777 and 330s.  The Boeing 777 is intended for long-haul routes while Airbus 330 will be the airline's backbone in regional routes.