Sangley Airport Is It!

SMC To Bid Airport Project


By Kris Bayos
3 July 2014

It’s final. The Department of Transportation and Communications (DOTC) has chosen Sangley Point in Cavite City as the location of the new airport, virtually shelving SMC proposal to build similar infrastructure on reclaimed land in Manila Bay.

Secretary Joseph Emilio Abaya said the DOTC will adopt the recommendation of the Japanese International Cooperation Agency (JICA) to build Manila’s next international gateway in Cavite. The announcement was made after San Miguel Corporation (SMC) failed to formally present its plan to build a $10-billion airport at Manila Bay.

“Our Planning Department requested SMC for a full and proper presentation of their proposal. Our two requests were either turned down or ignored. We won’t be insisting for the third time,” Abaya said.

Earlier, businessman Ramon Ang personally presented SMC’s plan to construct a modern airport along Manila Bay in a meeting with President Aquino last May. SMC’s proposed four-runway hub was designed to either complement or replace the aging Ninoy Aquino International Airport (NAIA).

“We weren’t sure why there is hesitation,” Abaya added. “They (SMC) have their own reasons and we don’t need to find out. So in the absence (of the SMC proposal), we will just pursue Sangley.”

Ang was quoted as saying earlier at the SMC Stockholders Meeting last June that they are amenable to bid out the contract to build and operate a new international airport even if the bids will involve different proposed sites.

“Bids can be for a new airport in Clark, Sangley or Metro Manila,” said Ang last month.

Ang said SMC’s plan for the new airport can be done in five to seven years. “We will start operations in the fifth year and it will be at full capacity of 150 million passengers a year by the seventh year,” he said.

The Cabinet official disclosed that the JICA site-selection study for the new airport in Manila had also considered Manila Bay but Sangley Point emerged as the best choice among seven locations.

“If you look at the JICA study, Manila Bay was also studied. Among seven locations, Sangley ranked on top after all factors were considered,” he said.

Although JICA is already working on the feasibility study of constructing a new airport in Sangley Point, Abaya clarified that the project is still subject to the approval of the National Economic and Development Authority (NEDA) Board, which is chaired by the President.

“We are pursuing Sangley (as the location). (JICA) will finish the feasibility study and (DOTC) will eventually get NEDA Board approval,” the official said.

Abaya also said DOTC is studying the appropriate funding structure for the project slated for construction in 2017 considering the huge cost of building a new international airport.

“Considering the huge cost, it is possible that the General Appropriations Act (GAA), Official Development Assistance (ODA), or Public-Private Partnership (PPP) will all have a component (to fund),” he said. The SMC airport will cost $10 billion and the same cost is estimated for the airport to be constructed in Sangley Point.

The NEDA Board will also decide on the fate of NAIA once the new airport is built.  DOTC expects NAIA to hit its maximum capacity between 2018 or 2020.

According to a 2011 JICA study, annual passenger forecasts for the Greater Capital Region will rise from 49.8 million in 2020 to 75 million in 2030, shooting up to 106.7 million in 2040.  In 2012, total traffic recorded in the region was already at 31.879 million. The greater capital region covers the National Capital Region and Regions 3 and 4A.

To meet the expected volumes, the DOTC has identified two viable options. Both will involve the expansion of Clark International Airport (CIA) in Pampanga, and the development of a new international airport in Manila.

The Landmark Of The Etihad Deal

PAL's Middle East Connection

3 July 2014

Etihad Airways (ETD) and Philippine Airlines (PAL) signed an enhanced cooperation agreement in April through a classified Memorandum of Understanding (MoU) which could potentially open doors to PAL having access to the Middle East market including Beirut in Lebanon and Amman, Jordan while providing Etihad access to connection flights in the Philippines.

Commercial benefits to both airlines and their customers includes code sharing, frequent flyer reciprocity, airport lounge access, special pro rate and air pass agreements, cargo cooperation, among others.

Etihad said the Memorandum of Understanding (MoU) could lead to increased flights from Abu Dhabi to Manila, as well as the possibility of expanding code-share agreements to the 20 regional airports within the Philippines.

Currently, Air Services between the two countries cap capacity at 28 flights daily to Manila, 14 flights to Clark and 14 flights to Cebu. Twenty one daily flights are serviced by Emirates Airlines, seven by PAL Express and Cebu Pacific while the remaining fourteen entitlements went to Etihad and the last seven by Philippine Airlines.

In 2006, Etihad Airways launched services between Abu Dhabi and Manila with four weekly Airbus A330-200 flights. The two airlines entered into a code-share agreement in 2007 where Etihad flew both entitlements with Boeing 777-300ER. 

The agreement expired in October last year and PAL flew from Manila to Abu Dhabi initially at five times a week in 2 October 2013 before increasing it to daily flight using Airbus 330-300 after new agreement was reached in April 27, 2014.

Etihad’s President and CEO James Hogan said the agreement was an “important milestone” in the long-standing relationship between the two carriers.

PAL President Ramon Ang said the partnership “will go a long way in providing our combined customer base a much more enhanced set of travel options.”

“This also comes at an opportune time for PAL which is in the thick of a fleet modernization and expansion program that will see the flag carrier pushing further not only into the Middle East but also on other parts of the globe using a modern fleet of aircraft,” Ang added in a statement.

He noted that closer collaboration in the local and global market arena will “enhance the competitiveness and appeal of our offering and deliver an unrivaled customer proposition in the UAE, in the Philippines and abroad."

PAL President Ramon Ang and Etihad Airways president and chief executive James Hogan said the partnership seeks to make the two brands the first choice for the more than 700,000 UAE-based Filipinos who account for much of the traffic on the Abu Dhabi-Manila route each year.

Last year, the Abu Dhabi-Manila route was Etihad’s second busiest destination next to Bangkok with 547,68 passengers. The MoU added PAL flights to make it thrice-daily flights between the capitals.

NAIA Terminal Fee To Be Integrated In Airline Tickets

International airline ticket prices to be purchased starting October this year will include International Passenger Service Charge (IPSC) more commonly known as the terminal fees that most passengers queue up for before boarding their flights. Full implementation of the MIAA policy will be in October 2015. For domestic flights from NAIA, the P200 terminal fee has been included in airline tickets since August 2012.

1 July 2014
By Azer N. Parrocha

After a series of negotiations, the Manila International Airport Authority (MIAA) and international air carriers signed on Tuesday an agreement including terminal fee in airline ticket costs.

Under the agreement, MIAA will pay all 34 airlines P150 million a year in total as a service charge for the P550 terminal fee per head.

In turn, air carriers will remit fees to MIAA by less than 3.5 percent. They will keep this as their service fee.

These airlines include Air Asia Zest, Air Asia Inc., Air China Limited, Air Niugini, Air Philippines Corporate (PAL Express), All Nippon Airways Co. Ltd., Asiana Airlines Inc., Cebu Air Inc., Cathay Pacific, China Airlines Ltd. Philippine Branch Office, China Eastern Co. Ltd, China Southern Airlines Co. Ltd., Dragon Air, Emirates Airlines, Etihad Airlines, Gulf Air, Japan Airlines, Jeju Air, KLM Royal Dutch Airlines, Korean Air, Malaysian Airlines System Berhad, Philippine Airlines Inc., Qantas, Qatar Airlines, Royal Brunei SDN Berhad, Singapore Airlines Ltd., Thai Airways, Tiger Airways Singapore Ltd., Kuwait Airways, Jet Star Asia, Saudia Airlines, United Airlines and Eva Air.

The only airline that has yet to sign the agreement with MIAA is Delta Air Lines.

MIAA General Manager Jose Angel Honrado, during the signing event, said that long queuing will soon be “a thing of the past.”

“After the check-in counter, passengers can go straight to immigration (without having to line up for terminal fee payment),” Honrado said in an ambush interview with reporters.

He further said that the main advantage of the agreement is that one of the airports’ “major irritants” would be abolished.

Philippine Airlines president Ramon Ang, in a separate interview, welcomed the development, saying that the integration of terminal fees in airline tickets would definitely make travel easier.

Ang further said that airlines should also see this move as an opportunity to provide better service to passengers.

The integration of the program will begin in October this year, with a one-year transition period ending in September 2015. Full implementation of the policy will be in October 2015.

This program applies to international flights only. The P200 domestic terminal fee has been integrated in the cost of domestic air fares since August 2012.

From the P550 international terminal fee being collected by MIAA, P390 is for its share for maintenance and upkeep, P100 goes to the government, and P60 for aviation security. (PNA)
SCS/ANP

PAF Celebrates 67th Year Learning The Jets Anew

1 July 2014

Philippine Air Force showcased 50 of its air assets highlighted by a fly-by display at its 67th anniversary held in Haribon Hangar, Air Force City in Clark Air Base, Pampanga, Tuesday morning.

The fly-by display was highlighted by the return of three S-211 jets to air service used for pilot training on the future FA-50 fleet of the PAF which will start delivery next year, complimented by the aerobatic team from the PAF Flying School, named the Ravens, which used 16 SF-260FH/M trainer planes in its aerial capability demonstration, as well as the three C-130 Hercules cargo planes together with other air assets to include one F-28, 2 F-27 Fokker, three N-22 Nomad planes, two OV-10 Bronco bombers, two SF-260TP warrior, nine T-41D trainers, LC-210 weather aircraft, four MG-520 gunship helicopters, four UH-1H Huey helicopters, one Bell 205, pair of Huey II rescue helicopters, six Sokol rescue helicopters, and three S-76A air ambulances.

President Benigno Aquino III said that beginning next year, the PAF will be officially back to the jet age with the arrival of brand new interdiction jet, the FA-50 from South Korea.

Northrail Dooms Clark Bid as International Gateway

1 July 2014

The government of the Philippines declared today that proposals to make Clark International Airport in Pampanga as the country’s international gateway is good as dead after the government of former President Gloria Arroyo bungled the Northrail project funded by China that was supposed to connect the proposed international gateway to the business centers of Ortigas and Makati.

In a press conference at Clark Airport today during the Philippine Air Force founding anniversary, President Benigno Aquino said that railway project connecting the airport is mired in legal controversy surpassing that of NAIA Terminal 3.

"We’re gonna go in arbitration against the construction company and we are undergoing that process currently," he said.

Previously, the Aquino administration sent its representative to China to re-negotiate the deal with intent to extend the railway line to Ortigas or Makati business district, but China refuses to talk.

The railway component is vital to the plan to make Clark a viable gateway airport similar to those installed in Malaysia, and Japan.

The President however stressed that the connecting train to Manila is still a goal but they will be delayed for a long time because of the legal process they will undertake to void the questionable and anomalous contract entered by the Arroyo Administration.

Development of Clark International Airport as Low Cost Carrier gateway remains on track  as it is about to open the newly expanded passenger terminal building.

Sleepless in NAIA 1? Not anymore

19 June 2014

Rudy Santos

Philippine Star

Passengers waiting for connecting flights at the Ninoy Aquino International Airport (NAIA) Terminal 1 can actually avail themselves of facilities where they can rest in comfort.

NAIA-1, tagged as the world’s worst airport last year by travel website sleepinginairports.com, in fact has clean and comfortable sleeping accommodations for passengers.

Twelve air-conditioned “day rooms” can be rented for P840 ($19) each for 24 hours. The rooms are located on the fourth floor of Terminal 1 right beside the Sampaguita lounge, which is being refurbished as part of improvements being done at NAIA.

Each room, measuring 3x3 meters, has a private toilet and shower.

A similar facility was set up in 1983 at the arrival area near the immigration section, but it was closed on March 23, 2012.

The new sleeping facilities opened on Sept. 5 last year but are little known.

Portia Ortiz, airport operations assistant, said most of the occupants of the rooms are foreigners with connecting flights as well as “excluded” passengers or those with immigration problems.

The day rooms have a strict no smoking policy, according to Ortiz.

Travel website Sleeping In Airports, in its Best and Worst Airports for 2013, tagged NAIA as the world’s most notorious airport.

NAIA 1 was first named as the world’s worst airport in 2011 and the worst in Asia in 2012.

The website’s list of best and worst airports in the world is based on the votes of travelers who were asked to consider comfort, convenience, cleanliness and customer service.

Some of the factors for the “worst airport” tag are crowded terminals, long delays, difficult transfers, lack of 24-hour food, dirty floors, bathrooms and food courts; unfriendly staff and airport scams, among others.

PH, Macau increases Flights

18 June 2014

The Philippines and Macau have signed a new Air Service Agreement increasing the current entitlement of 4,500 seats for additional 2,520 weekly seats to the current allocation.

The new agreement increases the entitlement to 7,020 weekly seats.

The existing air service agreement with Macau was signed in 1997, with the last negotiation for increased passenger traffic held in June 2013, when both countries agreed to increase seat entitlement to 4,500 seats a week from 3,500.

CEB Abandons Melbourne, Flies Sydney Instead

Opens Kuwait

17 June 2014

Cebu Pacific has changed its mind and has abandon Tullamarine Airport in Melbourne to fly direct to Syndey in Australia Beginning 9 September 2014.

In a press conference Monday,  Cebu Pacific president Lance Gokongwei said they will also introduce Kuwait in the Middle East starting 2 September and open up Saudi Arabia early next year.

Meanwhile, Cebu Pacific Vice president for long-haul operations Alex Reyes said the airline would fly 3 times a week to Kuwait, starting September 2, and 4 times a week to Sydney, starting September 9 using Airbus A330-300 for the new routes.