Logan Denies Buying Tan Shares

10 July 2014

Etihad Airways’ President and Chief Executive Officer James Hogan has denied reports that they will buy into Philippine Airlines following its recent acquisition last week of 49% share of Alitalia, the national airline of Italy.

Hogan was in Manila to launch the landmark partnership agreement with Philippine Airlines.

Mr. Hogan emphasized that this partnership with PAL was merely strategic, but on long-term relationship, to improve both revenues and costs.

He clarified, however, that deal does not mean gaining a stake at the Philippine flag carrier.

Etihad is in the process of formalizing the acquisition of Alitalia within weeks  that would be its eighth airline investment globally following Darwin Airline (34%), Air Serbia (49%), Air Seychelles (40%), Air Berlin (29.21%), Jet Airways of India (24%), Virgin Australia (19.9%), and Aer Lingus of Ireland (4.01%).

In a recent interview Monday with the Wall Street Journal, Philippine Airlines President and Chief Operating Officer Ramon Ang declined to identify the foreign airline or say whether it would buy all or part of LT Group's 51% share. 

Mr. Ang said the deal would be completed by the end of the year.

The San Miguel Corporation President which owns 49% and management control of Philippine Airlines said the new partner is capable of expanding the airline's international network.

Japan's All Nippon Airways has repeatedly been linked with Philippine Airlines over the last two years as it seeks to expand overseas. ANA General Manager Hideaki Izumi confirmed to reporters in March that discussions about a tie-up with Philippine Airlines were taking place but declined to answer further questions.

Since assuming control of the flag carrier, Ang has overseen an upgrade of the carrier's fleet, added new long-haul routes to Europe and the U.S., and reduced losses.

Ang said at an Annual Shareholders' meeting in June that all of the airline's long-haul routes, with the exception of recently added flights to London, are now profitable, and that the airline has started turning a profit in April.

MIAA Auctions DC-3 and Constellation

9 July 2014

The Manila International Airport Authority (MIAA) is set to auction abandoned classic aircraft that has been seating idly at the General Aviation area of the Ninoy Aquino International Airport (NAIA), the airport authority said Tuesday.

MIAA Legal Department Manager Perla Eslao Dumo has said that “abandonment proceedings” are now being undertaken by the airport authority for the disposal of 12 planes which includes a Douglas Corporation DC-3 plane built in 1943 originally for the US Air Force before it was sold and re-registered as RP-C147(cn 20767). The rest covers RP-C368, N102DH (cn 20830), some of which are owned by Gemino Pilapil, Jacob Lim, Jyoti P. Chatlani and Max Manning, and a 1950 era C-121J Super Constellation (N4247K c/n 4144) owned by William Crawford which can still be operational. 

The auction also includes McDonnell Douglas DC-9-32s previously operated by Cebu Pacific, and Mosphil Aero's Antonov AN-26B, Cessna 150 owned by Fredelito Juane, and Grumman American AA-IA Yankee.

The list of the auction planes are enumerated below

MASwings Reduces Palawan service

Due to Seasonal Variations

4 July 2014

By Romer S. Sarmiento

After barely a month of flying the Kota Kinabalu-Puerto Princesa route five times a week, MASwings Sdn. Bhd., a wholly owned subsidiary of Malaysia Airlines, has reverted to thrice-a-week flights even amid increasing tourist traffic, officials said.

Doreen Padilla of the Civil Aviation Authority of the Philippines (CAAP)-Puerto Princesa City, Palawan office said late Wednesday afternoon that the CAAP received notification from MASwings temporarily suspending two flights effective June 30.

“The airline advised us they will temporarily suspend their Monday and Thursday flights as there are some requirements they need to comply with,” Ms. Padilla said in a phone interview.

She did not elaborate on the requirements, while the airline’s local representatives could not be reached for comment.

MASwings previously announced on its Web site that effective June 2, it would service the route five times a week (Monday, Tuesday, Thursday, Friday and Sunday) using a 64-seater ATR72-500 aircraft.

In increasing their flights to five times a week, MASwings Chief Commercial Officer Shauqi Ahmad said in an earlier statement: “MASwings is pleased to be able to meet the great demand on the route Kota Kinabalu-Puerto Princesa. With its eco-tourism attractions… Puerto Princesa is quickly making its mark on the list of Must Go destinations.”

Meanwhile, Romeo Montenegro, Mindanao Development Authority director for investment promotions and public affairs which serves as the Philippine coordinating office for BIMP-EAGA (Brunei Darussalam, Indonesia, Malaysia, the Philippines-East ASEAN Growth Area), said traffic between Kota Kinabalu and Palawan has been on an uptrend since last month, though he did not give specific numbers.

“This a positive development in our efforts to further strengthen air connectivity between Palawan and Kota Kinabalu to lure more people to visit tourism sites in the BIMP-EAGA,” he told BusinessWorld.

Kota Kinabalu in Malaysia and Palawan in the Philippines are two focus areas under the BIMP-EAGA, a grouping launched in 1994 to accelerate the social and economic growth in the less developed areas in participating countries.

MASwings began servicing the Kota Kinabalu-Puerto Princesa route in November 2013.

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.