Subic International airport to close

As SBMA mulls converting airport
to logistics center

January 26, 2010

Quick Facts:

• 250 million pesos annual expense for airport operations;
• 200 million pesos annual income in 2008, 150 of which comes from Fedex;
• earns 30 million pesos only in 2009, 25 million of which comes from Fedex until February;
  

SUBIC -- The Subic Bay Metropolitan Authority (SBMA) is thinking of giving up its international airport as it has reduced itself into a white elephant since the departure of US transportation giant Federal Express.

SBMA administrator Armand C. Arreza told reporters here that SBMA is eyeing the conversion of the Subic international airport into a logistics center because of the massive development of the much bigger Clark airport.

Arreza said Subic’s seaport facilities would complement the airport services of Clark which is just an hour away with the Subic-Clark-Tarlac expressway. "We cannot have two airports in areas which are just an hour apart," Arreza said.

Arreza said SBMA shoulders up to P250 million annually to have the airport running, P150 million in debt service and another P100 million for maintenance cost.

To break even, he said, the airport should be able to mount 12 to 15 flights a day.

"Even when Fedex was here, we were breaking even, and now with Fedex gone, the airport is losing money," he said.

Another advantage of Clark airport is that its landing and parking fees are free.

"We cannot compete with Clark. It is acceptable that there is another airport, so we are looking at it on the economic point of view. We are evaluating the airport," Arreza added.

Fedex pulled out its AsiaOne hub in Subic in February last year to transfer to China.

Subic airport now caters to very few charter flights and training schools.

The airport served as a secondary airport and a main diversion airport of the Ninoy Aquino International Airport. This airport used to be the Naval Air Station Cubi Point of the United States Navy.