Afriqiyah Airways to arrive Manila September 19

Attributes Financing Glitch for Delay.

August 18, 2009

Photo: Captain Sabri Shadi, CEO of LAA Holdings, during the delivery ceremony of the A330.

Tripoli- Aircraft Financing glitches caused Afriqiyah Airways delayed maiden flight to the Philippines which was announced to arrive in July 17, 2009, but was re-scheduled back to its original arrival date.

Captain Sabri Shadi, CEO of Libyan-African Aviation Holding, the Company that controls Afriqiyah Airways, said that they just received its first Airbus 330-200 on August 10 after funding assistance from government banks which agreed to finance three (3) out of the six (6) aircraft orders.

Shadi said that they encountered finding funding for its twenty three (23) aircraft orders which resulted to delivery deferrals. He said that at first, Libyan Banks were reluctant to finance their massive orders until they agreed to scale it down thereby reducing orders to only three 330's.

"This is the first kind of this aircraft to be delivered to Afriqiyah Airways. We ordered three of them and we will receive the second one sometime in September and the third one will be delivered at the end of October. We will also receive other three (3) A319, smaller than the A330 on the18th of August," said Eng. Rammah Ettir, Afriqiyah Airways' Chief Executive Officer.

The new A330 will seat 230 passengers in a two-class cabin and will serve long-haul operations on routes from Tripoli to Africa and Europe and later on to the Far East of Asia.

The first A330 will start serving London, Paris, Lagos and Accra within the next six week. It will then fly to Johannesburg and Cape Town on the 4th of Sept 2009 while its second A330 will fly on September 19 to Manila and the third A330 to Beijing on October 28.

"Afriqiyah Airways has achieved impressive growth since it first entered the market in 2001, and we are very proud to have been their partner during this time, " said John Leahy, Airbus Chief Operating Officer.

"The A330 has unbeatable economic efficiency and will enable Afriqiyah’s continued expansion. We look forward to continuing our partnership.” said Mr. Leahy at the handing over ceremony of the aircraft at the premises of Maitiga Airport.

Afriqiyah Airways delivery of its first Airbus A330 is considered a milestone in the history of Libya's aviation since it is the first large aircraft of its kind to be delivered in Libya. It is also a major step forward of the company's long haul operations after its establishment in 2001.

Cebu Pacific Revenues Up

First-half profit soars to $321 Million

August 18, 2009

Philippine low cost carrier Cebu Pacific has reported its first-half profit of $321 million, up 21% than 2008 figures according to the disclosures of its holding firm JG Summit.

JG Summit Holdings said Cebu Pacific’s gross revenue jumped 21.3 percent to P11.39 billion as a result of its additional flight frequencies and opening of new route destinations as a result of its extensive expansion program.

Cebu Pacific Chief Executive Officer Lance Gokongwei said the airline expects delivery of 2 new airbus 320 and 2 ATR aircraft his year to support its domestic expansion which already carried 4.3 million passengers in the first half of the year. He said that they are expecting a full-year target of nine million passengers this year but challenges remained in the second half most notably due to increase competition by other low cost operators in the country.

Cebu Pacific operating expenses also increased because of new aircraft joining its fleet to P9.28 billion($193 million) from P8.19 billion a year earlier. It however incurred foreign exchange losses of P223.38 million, but is 77 percent lower than last year’s P958.72 million figures.

Its biggest break came from fuel hedging gains of P471.43 million against P77.11 million last year.

“All these factors contributed to the turnaround in the airline’s bottom line, from a net loss of P15.66 million last year to a net income of P1.82 billion this year,”Gokongwei added.

SMA prepares maiden flight to Taipei

Spirit of Manila unveils its new aircraft at Clark

By FRED ROXAS

August 18, 2009

CLARK FREEPORT, Pampanga – Spirit of Manila Airlines unveiled last Friday its new MD-83 aircraft at the Diosdado Macapagal International Airport (DMIA) here.

Clark International Airport Corp. (CIAC) President and CEO Victor Jose I. Luciano said that more Spirit of Manila airplanes, which include an MD-83, Boeing 747-300, and 747-400 will be arriving in September and November to complete the airline’s fleet in time for its operations in December, this year. The MD-83 aircraft arrived at DMIA last Aug. 1.

The aircraft is expected to fly to Taiwan and Macau and in the Middle East via Qatar, Dubai, Baharain, and Kuwait to serve the transport needs of Overseas Filipino Workers (OFWs), many of them coming from Central and Northern Luzon.

“This will benefit our OFWs working in the Middle East, most of whom are from the Central and Northern Luzon, and will also attract more tourists to visit our country using DMIA,” Luciano said.

Luciano led other officials who included Transportation and Communication Secretary Leandro Mendoza, Spirit of Manila Chairman Basilio Reyes, President and CEO Jimmy Matibag, and Vice President Rene Ocampo, and foreign partner Vice Chairman Hamad Altani in the unveiling event.

Spirit of Manila Airlines is the first large local carrier that will base its operations in Clark, and its airplanes will start flying out of DMIA very soon, he said.

Luciano said the MD-83 aircraft would be used for the Clark-Taiwan flights. “There wiil be no flight between Taiwan and Clark, and this is the right time that we will now have flights to Taiwan.”

“This is the first time, and even former President Fidel Ramos has been proposing Clark-Taiwan flights,” Luciano said.

PAF Choppers hit by enemy fire

Marine General almost have it!
August 17, 2009

Zamboanga City - The Armed Forces of the Philippines (AFP) almost lost a General Sunday when the Huey transport helicopter that carried the officer together with NBN TV crew was hit by enemy fire while flying low over the vicinity of Tipo-Tipo in Basilan, the site of bloody encounters with terrorist forces that resulted in heavy government casualties last week.

Suspected al-Qaeda-linked militants fired at two low-flying military helicopters wounding two journalists and a government photographer, regional military commander Maj. Gen. Benjamin Dolorfino said while the chopper was on its way back to Zamboanga City.

The two UH-1H Huey helicopters made an emergency landing in Barangay Tumawas, Lamitan City on Basilan Island.

However, Lt. Col. Romeo Brawner, Jr., Armed Forces of the Philippines public affairs office chief said that Marine Brigade commander, Brig. Gen. Rustico Guerrero was no longer aboard any of the helicopters when it was hit by enemy fire at 10AM.

The passengers of the two helicopters were immediately secured by government troops and civilian volunteer groups upon landing.

Malacañang cancels plan to purchase P1.2-B jet

Presidential jet to be bought by the next President!

August 17, 2009

Press Secretary Cerge Remonde announced yesterday that President Gloria Macapagal Arroyo wants to end the furor over her travel expenses by ordering the cancellation of the planned purchase of a presidential jet that would have cost the government at least P1.2 billion.

“I’m formally announcing that the President has ordered the cancellation of the purchase of the presidential jet. This is the second time that the President has ordered its cancellation even if this has long been recommended by the Presidential Airlift Wing several times,” says Remonde.

“She ordered the cancellation because she doesn’t want her critics to say that she’s prioritizing her own needs,” he added. But actually the new executive jet would not have just benefited Arroyo but also her successors, ensuring their safety and minimizing costs during local and foreign travels, Remonde said.

The Office of the President's (OP) prepared advertisement in the National Papers Thursday last week inviting bids to supply a brand new twin jet with VIP cabin configuration with budget of $25 million.

Had the offer pushed through, the most likely candidate for the Executive jet could have been the Legacy 600 jet manufactured by Embraer of Brazil says its local agent in Manila.

The Embraer jet has been offered to the President for her consideration when she visited Brazil in June this year which then became the basis of the bid proposal.

The Legacy 600 jet which was launch in 2000 carry 16 passengers and has a range of 3250 nautical miles which can easily reach Seoul, Tokyo and Sydney on a single journey and one refueling stop to reach the US west coast, the same specifications intended by the Office of the President. The jet is $5 million cheaper than its nearest comparable competitor aircraft manufactured by Bombardier of Canada.

Arroyo wants $25 million jet for Presidency

'Focus on repair of C130s, not jet' says Biazon

BAGUIO CITY , Philippines – Malacañang has lost its sense of priority in purchasing an executive jet for the president, Sen. Rodolfo Biazon said yesterday.

Instead of buying an expensive private jet for the president, Malacañang should prioritize the upkeep of the Air Force’s remaining three C130s that badly need repair and upgrade, he said.

Biazon, a former Armed Forces chief, said the mobility of the military should be the priority of the government.

“And besides, the president doesn’t need a jet… the Philippines is so small,” Biazon said.

Malacañang justified its move to buy a brand-new presidential jet worth P1.2 billion, saying it would also benefit President Arroyo’s successors and greatly reduce security risks and other dangers when the nation’s leaders use aging planes or charter aircraft.

President Arroyo either takes a commercial flight or charters a flight when going on foreign trips. For domestic trips or visits to nearby countries, Malacañang leases private jets.

The last presidential aircraft was an aging Fokker F-28 jet used by former Presidents Fidel Ramos, occasionally by Joseph Estrada, and a few times by Mrs. Arroyo at the start of her administration in 2001.

An older presidential aircraft was the Fokker F-27, which was propeller-driven.

In the later part of the Ramos administration, the same aircraft was used to ferry journalists or Palace officials. It is no longer in use as it is considered dangerous to fly.

Mrs. Arroyo earlier donated two of the presidential helicopters to the Air Force.

The Office of the President earlier published a notice of biddings for a “presidential fixed-wing executive jet” that must be factory new, with two turbo-fan engines pressurized and equipped with avionics and instruments that are prescribed and compliant with the standards of the Federal Aviation Administration and International Civil Aviation Organization.

The aircraft is set for delivery at the end of the year following the bidding process that starts this month.

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Arroyo's Foreign Travel cost $56 Million

The trips could have bought her an Airbus 319

August 15, 2009

According to the Commission on Audit (COA), President Gloria Macapagal-Arroyo has racked up P2.7 billion ($56 million at current exchange rates) in expenses for her foreign trips beginning 2003, or more than double the P1.1-billion limit set by Congress from 2003 to 2008.

COA Assistant Commissioner Carmela Perez in a Congressional Hearing at August 12 said that the President’s foreign travels cost P332 million in 2003 (from a budget of P72 million), P256 million in 2004 (from P74 million), P325 million in 2005 (from P209 million), P421 million in 2006 (from P261 million), P656 million in 2007 (from P261 million) and P722 million in 2008 (from P244 million).

Bukidnon Rep. Teofisto Guingona III was reported by the inquirer to have said that there was an effort to mislead the public by keeping the President’s official foreign travel budget relatively low and using her office’s contingency fund to fill up for any shortfall in funding.

“There is a pattern here. She is hiding her travel expenses in her contingency funds, like she is preventing the public from seeing [the real picture]. There is a violation against transparency and honesty. It leaves a bad taste in the mouth,” the lawmaker said.

He said the contingency fund was allotted for emergency purposes but Ms Arroyo had been using it exclusively to bankroll her foreign trips.

COA records also showed that the President spent some P1.44 billion on her foreign travels from 2002 to 2007.

The breakdown of the foreign travels is listed as “Traveling Expense-Foreign” under the Office of the President’s Maintenance and Other Operating Expenses (MOOE) and showed how Ms Arroyo’s travel expenses swelled every year:

2002-P80,625,108.20
2003-P109,870,203.33
2004-P115,980,557.42
2005-P154,383,308.01
2006-P398,447,583.30
2007-P588,495,232,26

TRAVEL EXPENSES

Year Budget Actual
2003 P72 M P332 M
2004 P74 M P256 M
2005 P209 M P325 M
2006 P261 M P421 M
2007 P261 M P656 M
2008 P244 M P722 M
Total P1.121 B P2.712 B

But for all that, the President is not about to stay put.

Gary Olivar, Ms Arroyo’s spokesperson on economic matters, Friday told reporters that she had not overshot her budget for foreign trips and had “budget room” to go abroad in the 10 remaining months of her term.

“Well, the DBM (Department of Budget and Management) numbers tell us that there’s still budget room for her to continue to travel because she has not exceeded her budget,” Olivar said when asked at a briefing if Ms Arroyo would cut down on trips.

He added: “It all depends on the benefits we’re looking for whenever she travels.”

Quoting the DBM, Olivar said that in 2008, the Office of the President spent some P233.8 million on local and foreign trips out of the P244.6 million allotted in the 2008 national budget.

DBM figures on her trips from 2001 to 2007 were not available.

Olivar argued that if ever the Office of the President exceeded its budget for foreign trips, this was allowed under Section 62 of the General Appropriations Act for 2008.

Section 62 states that agencies may augment any item of expenditure within the MOOE from savings in other MOOE items without DBM approval.

“There’s budget flexibility. Provided she can find savings in other parts of the budget to fund more trips, then that is allowed,” Olivar said.

Besides, no one can put a price tag on the pledges of investments, potential employment for workers and stay of executions of overseas Filipino workers that are gained from such trips, he said.

PAL Reports $35 Million Profit for Q1

But Revenues dropped by 12%

15 August 2009

Manila - Philippine Airlines reported yesterday that its net profit for the first quarter of fiscal year 2009 fell 21.29% or more than a fifth it earned in the same period last year equivalent to $35.5 million.

The airline cited decreasing yields and dwindling international passenger traffic which account to almost 78% of its revenue generation. The cause of its revenue shortfall is attributed to global recession affecting legacy airlines worldwide and travel fears over the swine influenza outbreak.

The low yield is attributed to the airline's decision to cut fare prices to international destinations to stimulate travel demand and consequently earned its way as one of few world airliners to register profit during the period. International Air Transport Association (IATA) has already projected that the combined losses of all member-airlines for the year would reach $9 billion. Meanwhile, its domestic operations enjoyed double digit growth amidst global uncertainty.

PAL said total revenues for the quarter dropped by 12% to $394 million against the 2008 level of $446.9 million. The airline's expenses was relatively lower by 11% to $358.5 million mainly due to lower fuel prices.

Meanwhile, PAL took delivery of its third reconfigured B747-400 aircraft equipped with enhanced cabin amenities that include Recaro "lie-flat" Business Class seats and modern inflight entertainment systems. It seeks to complete the reconfiguration of all its B747 this year.

The airline operates a mix fleet of 48 Boeing and Airbus aircraft for domestic and international destinations.