Canada Doubles Air Rights

Agrees 14 flights per week, Clears New York!

28 May 2014

Canada has agreed to double the number of flights to the Philippines from the present seven agreed in May 2008 to 14 flights a week today.

Fifth freedom rights to the United States was also increased from four to five times per week upon the request of Philippine Airlines (PAL) which intend to introduce flight to New York via Vancouver in British Columbia, or Toronto in Ontario abolishing seat restrictions in exchange for code share rights. PAL used to fly four of this rights to Las Vegas Nevada before terminating the route in December 2012 due to poor loads.

Air Canada does not fly to the Philippines, but the new Air Services Agreement allow the airlines of both countries to enter into third-country code-sharing. A third country code-sharing happens when airlines like Air Canada for example put their Airline code for PAL flights to New York in the United States which also agree to jointly market the route. Fifth Freedom traffic is usually restricted to 50% of the aircraft capacity calculated in annual basis.

The same agreement calls for the same fifth freedom rights to Canadian carriers from Manila to Australia.

Canada’s Ambassador to the Philippines Christopher Thornley said that PAL is proposing 14 flights a week to Vancouver with onward connections to New York and Toronto.

The air talks were held in Manila from 26 May to 27 May, agreement and confidential memorandum of which were signed today May 28.  The air services talks with Canada was originally set for June 27 to 28 meeting but was reset earlier by Canadian transport officials.

SMC and Sangley Airport Project Consolidates

24 May 2014

This blog break this story long before it became official. You can read the still classified story here

By Miguel R. Camus
Philippine Daily Inquirer

The Department of Transportation and Communications will consider a San Miguel Corporation proposal to build a $10-billion international airport in a former US naval base in Sangley Point, Cavite as part of a “dream” infrastructure plan, Transportation Secretary Joseph Abaya said.

Abaya said in a recent interview that the Sangley airport project, which would require about 2,000 hectares of reclaimed land and support four runways, was ready to be presented to the board of the National Economic Development Authority, chaired by President Aquino.

The Sangley airport proposal was prepared by the Japan International Cooperation Agency, which included the massive alternative air gateway as part of a Metro Manila transportation “dream plan” aimed at easing congestion in the capital district through various mass transportation solutions.

“The dream plan is about to go to the Neda board,” Abaya said. “Jica needs Neda approval on their dream plan before they conduct the FS [feasibility studies].”

The Sangley airport proposal and that of San Miguel Corp. are aimed at providing alternative sites to Manila’s Ninoy Aquino International Airport, which has been suffering from congestion issues partly due to limitations from its single primary runway.

Abaya said the proposed airport in Sangley was similar in size to the 1,600 hectares San Miguel would need to reclaim for its airport project near the CyberBay Corp. reclamation project in Manila Bay.

Abaya said JICA’s airport project was estimated to cost “in the same ballpark” as the $10-billion airport proposal of San Miguel, which partly owns flag carrier Philippine Airlines.

While acknowledging that a new airport serving Metro Manila would not be completed by the time Mr. Aquino steps down in mid-2016, Abaya said the government was keen on laying the groundwork like starting land acquisition and reclamation activities within the next two years.

“We are hoping to start that and show we are committed to the project,” Abaya said. He said the government would likely enlist the private sector’s support for an airport project of this scale via an open bidding process.

San Miguel president Ramon S. Ang earlier said that an open bidding was acceptable should the government choose San Miguel’s proposal.

Ang also said he was keen on partnering with other local conglomerates like Ayala Corp., Henry Sy’s SM Investments and the Gokongwei Group’s JG Summit Holdings.

Government Sticks To Sangley Project

23 May 2014

The Department of Transportation and Communications (DOTC) said Thursday that studies for the establishment of International Airport in Mega Manila replacing Sangley airport in Cavite will continue despite offers from San Miguel Corporation (SMC) to build a $10 billion international airport in CyberBay Corp.’s disputed waterfront reclamation project in Manila Bay.

DOTC Secretary Joseph Emilio Abaya said that government also has its own plans of putting up a new international airport in Sangley by 2027 capable of  supporting 4 runway adjacent to where SMC wants to build their airport.

SMC Airport still has to be approved by Philippine aviation regulators, design of which this early appears to cross wind direction as against flying with the wind, an essential element of building airport runways.   

The new airport plan is part of the transport roadmap that seeks to address growing passenger volume in the country. 

The Civil Aviation Authority of the Philippines (CAAP) is constructing a parallel runway next month to address congestion at the Ninoy Aquino International Airport (NAIA) while waiting for the new airport to be completed in 2027.

CAAP Deputy Director General John Andrews said the parallel runway will be completed in 2 years at the cost of 2 billion pesos.

Parallel runways boost airport capacity from less than 40 events an hour to between 60 and 70 per hour, resulting to massive decongestion to about 80 percent of NAIA's air traffic which will allow the airport to grow more capacity in excess of 40 million. 

Andrew said the new parallel runway is only intended for domestic flights and can accommodate aircraft as big as Airbus 321's and Boeing 737-900's comprising majority of all commercial flights in Manila.

The Japan International Cooperation Agency projects passengers from the greater capital region to hit 106.7 million by 2040 from 31.88 million in 2012.

PH Signs ASA With Burma

22 May 2014

The Philippines has signed a new air services agreement with Myanmar on Tuesday allowing designated airlines of the Philippines and Myanmar a total of 3,780 seats a week or equivalent to three flights a day between Manila and three international airports in Myanmar.

Both countries also agreed on unlimited traffic rights between all points in the Philippines, except Manila, and between all points in Myanmar.

Air Services Agreement with Myanmar was originally signed in 1979 but no airline flew this route.

PPS Builds New Terminal

Kumho-GS wins bid

21 May 2014

Department of Transportation and Communications (DOTC) has unveiled on Tuesday the new US$82.9 million terminal building with capacity for 2 million passengers in Puerto Princesa Airport, scheduled to open in March 2017. 

Construction of this projcet was funded through the Korean Export Import Bank (KEXIM) loan amounting to $71.6 million while the rest is funded by the Government of the Philippines (GOP). The loan is payable in 40 years, inclusive of a 10-and-a-half-year grace period, at an interest rate of 0.1 percent a year. 

Bidding for the project was limited to South Korean companies in accordance with the Guidelines set for Procurement of Korea’s Economic Development Cooperation Fund (EDCF), and was awarded to Kumho Industrial Co. Ltd.-GS Engineering and Construction joint venture (Kumho-GS), which is set to start work on a new passenger and cargo building, apron, taxiways and navigation facilities by the end of this year.

In 2013, Puerto Princesa Airport registered 1.34 million travelers against the 350,000 passenger capacity terminal building.

NAIA To Build Parallel Runway

20 May 2014

CAAP Deputy Director General John Andrews on Tuesday, May 20, shows an aerial photo detailing the proposed additional 'parallel' runways at NAIA in Parañaque City, the construction of which will start next month. The new runways are expected to ease congestion during multiple flight arrivals and takeoffs. Ariel Fernandez

CEB Flies Tandag

Starts June 29

20 May 2014

Cebu Pacific will fly between Cebu and Tandag, Surigao del Sur, on June 29, 2014 using an ATR 72-500 aircraft.

Maiden flight will depart Cebu at 11:10am, arriving in Tandag at 12:15pm. The return flight will depart Tandag at 12:35pm, and arrive in Cebu at 1:40pm.

Tandag will be the airline’s 34th domestic destination.

SMC proposes $10B Manila Bay airport

NEW INTERNATIONAL GATEWAY 

Here is an artist’s rendition of San Miguel Corp.’s proposal of what could be the country’s largest and most modern airport—a $10-billion air terminal on reclaimed land on Manila Bay. SanMiguel Corp./CONTRIBUTED PHOTO

16 May 2014

By Miguel R. Camus
Philippine Daily Inquirer

MANILA, Philippines—The Department of Transportation and Communications (DOTC) is considering the proposal of San Miguel Corp. (SMC) to put up a $10-billion  international air gateway at a reclamation project in Manila Bay. 

Michael Sagcal, Transportation department spokesman, said the agency was “very open” to the SMC proposal to establish the airport in the bay area covering the cities of Parañaque and Las Piñas. 

“We invite SMC to make a more formal presentation and to submit a proposal to us,” Sagcal said in an interview, adding that the massive airport project was presented to Malacañang on Wednesday. 

Transportation Secretary Joseph Abaya was present when SMC president Ramon Ang unveiled the airport plans to President Aquino. The project of SMC, which is part owner of flag carrier Philippine Airlines, would be located at CyberBay Corp.’s disputed waterfront reclamation project in Manila Bay, Sagcal said. 

San Miguel, which owns a stake in flag carrier Philippine Airlines, told the Philippine Stock Exchange in a disclosure that reports of its bid to build the four-runway hub in Manila Bay were “accurate.” 

It was not immediately clear how SMC’s airport project—an unsolicited proposal—would pan out since the DOTC earlier enlisted the help of the Japan International Cooperation Agency to identify a second gateway to the country. 

Also, the Aquino administration maintains a stance against unsolicited proposals, stating on several occasions that it prefers an open bid process. 

But Abaya said in a text message on Thursday that an unsolicited proposal “isn’t illegal or prohibited, but again, the bias is toward solicited open and transparent bidding, which SMC is open to.” 

Abaya said in March that JICA had identified the former US naval base in Sangley Point, Cavite, south of Metro Manila, as an ideal location. 

“If SMC’s proposal turns out to be viable, we will consider it alongside JICA’s recommendations,” Sagcal said. 

Airlines are frustrated with heavy congestion and other woes at Manila’s existing international airport, which has been named the worst in the world for two years running by an online travel guide. 

The airport was hit by air conditioning failures in sweltering weather last month, just as millions of Filipinos began traveling for the Easter holidays—forcing Aquino to make a public apology. 

The airport was built in 1981 to service six million passengers a year, but its terminals handled more than 32 million in 2012, according to the airport authority. 

Philippine Airlines and other carriers routinely suffer flight delays as Manila and other airports across the country struggle to handle surging traffic. 

Manila’s Terminal 1 was named the worst in the world for the second year running in 2013 by travel website “The Guide to Sleeping in Airports”. 

Travelers criticized its “dilapidated facilities,” airport workers—particularly taxi drivers—long waiting times and rude officials.—With a report from Agence France-Presse