Cebu Wanders

wonderfull flight with Cebu Pac

2011-10-29T08:43:00.000-07:00

This if my flight from Cebu to Ozamiz with Cebu Pacific flight 5J 869 take off at Mactan Cebu International Airport and Landed at Ozamiz Labo Airport taken Oct. 22, 2011. Thank you Cebu Pacific for the wonderful and safe flight.

Budget airlines ride crest of Southeast Asia boom

2011-10-21T10:08:00.000-07:00

(Reuters) - Five years after Southeast Asia's biggest airport by passenger capacity opened in Bangkok, hailed as the dawn of a new breed of Asian mega-airports, the sleek, wave-shaped passenger terminal is already running at over-capacity.

The overflow of passengers at one of the world's largest air hubs illustrates an aviation boom that is accelerating in Southeast Asia, even as airlines in Europe and the United States cut capacity and fleets to salvage profits.

From Bangkok to Kuala Lumpur to Singapore, airlines in the region of 550 million people are expanding fleets and adding capacity even as the International Air Transport Association (IATA), a trade body, warns a weak global economy could shrink industry profits by 29 percent in 2012 to $4.9 billion.

"The ASEAN aviation sector is still one of the few bright spots in the regional sector," said Rigan Wong, an analyst at Citigroup in Hong Kong, referring to the 10-nation Association of South East Asian Nations.

"What is happening in ASEAN is more structural," said Wong.

Rapid economic growth, rising affluence, liberalisation and notoriously poor rail, land and sea transportation are reshaping an industry that only a decade ago was hamstrung by heavy handed regulation and government involvement in much of Southeast Asia.

The International Monetary Fund has forecast ASEAN's five biggest economies to grow a combined 5.6 percent in 2012, well compared with 1.8 percent in the United States and 1.1 percent in Europe.

CAUTION

However, there are some wild cards for Asia's airline sector.

Regional airlines should be cautious about expanding too aggressively given trouble in the world economy, said Shukor Yusof, a Standard & Poor's analyst in Singapore, citing how the last downturn forced Japanese flag carrier Japan Airlines to file bankruptcy in January 2010.

"Airlines are expanding and increasing capacity, and taking deliveries (in 2012) at a time when the global economy is potentially at the start of a deep and painful recession, therefore there are risks of airlines failing," Yusof said .

And while high cash levels could offset those risks, airlines in need of funds to expand could face problems over the next 12 months due to strains at some European banks, a "major source" of financing for aircraft purchases, said Robert Martin, chief executive of BOC Aviation Pte Ltd.

Those conditions have forced some airlines to turn to semi-government export credit agencies to raise funds for expansion.

"More airlines are going back to export credit agencies, so the question is: are governments politically prepared to support that additional commitment that is going to be required," said Martin at BOC, a unit of Bank of China (601988.SS) and one of the world's biggest airplane lessors .

ASEAN'S OPEN SKIES

While U.S. and European air travel demand slows as nervous companies cut travel budgets and travellers pare back vacations, intra-regional traffic demand in Southeast Asia is projected to grow at an average of 7.4 percent a year until 2030, according to U.S. aircraft manufacturer Boeing Co (BA.N).

That compares to 4 percent in Europe and 2.3 percent in North America, the data show.

Partly driving regional expansion are plans by ASEAN to establish a single aviation market with no traffic restrictions by 2015. This will allow unlimited flights between ASEAN capital cities, prompting more flights and raising the prospect of more cross-border joint ventures.

Four new airlines, including ventures from Singapore Airlines Ltd (SIAL.SI) and Thai Airways International Pcl THAI.BK, are set to start Southeast Asian operations over the next 12 months.

Airports of Thailand is still pushing ahead with plans for a new runway and a terminal at Bangkok's Suvarnabhumi Airport, whose name means "Golden Land" in Sanskrit.

The hub handled more than 47 million passengers in the 12 months to September 30, surpassing its designed annual capacity of 45 million. It forecasts 50 million next year.

"Only a few years ago the bulk of people in this part of the world started to embrace this sense of wealth where everyone can fly," Airports of Thailand acting president Somchai Sawasdeepon said. "Still, more infrastructure development is needed to keep up with the demand."

HIGH-FLYING LOW COST AIRLINES

Shares of most Southeast Asian airlines and airport operators have underperformed their respective markets so far this year. Investors have been cautious, reckoning high fuel costs and sprawling budget airlines may squeeze short-term profits.

Malaysian Airline System Bhd (MASM.KL) and Philippines's Cebu Air Inc (CEB.PS) have lost more than 30 percent this year. Tiger Airways Holdings Ltd (TAHL.SI), a low-cost carrier started by Singapore Airlines, has lost 60 percent of its value.

AirAsia Bhd (AIRA.KL) is the sole outperformer, surging some 50 percent so far this year. The company began in 2001 when Tony Fernandes, a former music executive for Time Warner Inc, turned the carrier around by offering more-affordable fares and sparking budget air-travel revolution in Asia.

"Short-haul aviation demand is holding up well and AirAsia is the prime beneficiary," said Raymond Yap, an analyst at CIMB Securities in Kuala Lumpur. He rates the stock outperform.

During the 2008-09 global financial crisis, AirAsia saw more than 20 percent traffic growth a year as rivals exited or reduced capacity , said Annuar Aziz, an analyst at Credit Suisse in Kuala Lumpur. In August, AirAsia conducted a share swap with Malaysian Airlines, valued at $364 million.

Despite its share price gains, AirAsia stock still trades cheap at 10.2 times 2012 earnings, compared with Singapore Airlines's 13.4 times and a 14.7 price to earnings multiple for PT Garuda Indonesia Tbk's (GIAA.JK).

Manila-based Cebu, a unit of conglomerate JG Summit Holdings Inc (JGS.PS), is trading at 9.0 times forward earnings after a recent share buy-back, a possible signal that the shares have bottomed out.

With rising incomes set to boost demand for cheaper travel in Southeast Asia, analysts say relatively cheap shares such as AirAsia, Cebu Air and Airports of Thailand Pcl AOT.L AOT.BK may benefit from the boom.

Full-service carriers are also investing heavily and expanding into low-cost areas. Singapore Airlines, for instance, plans a no-frills, low-fare carrier that will likely have four planes in service next year as it targets traffic in Australia, China and Europe.

"To survive you have to invest more," said Piyasvasti Amranand , president of state-run carrier Thai Airways.

Amranand said airlines had no choice but to spend further on planes as they need newer, more fuel-efficient aircraft to upgrade fleets, keep pace with rivals and to keep costs under control in the face of high oil prices.

As part of its fleet revamp, Thai Air is looking to acquire an additional 38 new aircraft, the company said. It wants to operate 112 aircraft by 2022.

The region is not in danger of excess capacity, Citi's Wong said.

"If you look at the past 10 years of data and replot capacity growth against demand growth, you'll see that there have been fewer periods of over capacity in the region (Asia) compared to globally," he said.

"Even if there is any sign of a very rapid expansion, I don't think there will be structural overcapacity."

(Additional reporting by Min Hun Fong in KUALA LUMPUR, Manunphattr Dhanananphorn in BANGKOK and Alison Leung in HONG KONG; Editing by Jason Szep and Anshuman Daga)

Source: REUTERS Edition U.S.

MassKara draws 1 million people

2011-10-20T11:57:00.000-07:00

THE 19-day celebration of the 32nd MassKara Festival 2011 attracted approximately a million people who flocked at the different festival venues, Mayor Evelio R. Leonardia said at the festival’s closing night at the public plaza Wednesday.

Leonardia, with Vice Mayor Jude Thaddeus Sayson, Councilors Homer Bais, Bobby Rojas and Mona Dia Jardin and Silver MassKara Festival
Organization, Inc. Festival director Eli Tajanlangit thanked the people of Bacolod and tourists who supported this year’s festival.

He also announced the early launch of the MassKara Festival 2012 Wednesday night to ensure that next year’s festival, being his last as the mayor of Bacolod, will be something that will be long remembered.

“We need to have an early preparation so that we can involve more people. We cannot do away with MassKara, as MassKara is part of us and part of the system of Bacolod,” Leonardia said.

“Every time we have MassKara, it invigorates us to even do better to move the city forward. We look forward that next year, there will be more people involved, more events and even more flights,” he added.

He said that he is always thankful of the barangays, schools, organizers, artists, and city officials for their contribution to the success of the festival.

“This would never be a success without their contribution. The people have embraced the festival and participated in all the activities and this has been proven that all this will not be attained without our people. The credit goes to the people,” he said.

Leonardia likewise gave credit to this year’s festival director Tajanlangit and announced his reappointment for 2012.

Source: SunStar Bacolod by: Carla N. Canet

Koreans lead growth in international arrivals to Cebu

2011-10-19T11:55:00.000-07:00

Fort San Pedro in Cebu, Philippines

Cebu, Philippines, continues to raise its international profile as a worthy tourism destination. The city has recorded a 10.5% year on year increase in visitor arrivals during the first seven months of 2011. Of the 1,131,230 visitors to arrive, Korean nationals continue to top the list of foreign travellers, growing 53% on last year to 206,885. Director of the Department of Tourism in Central Visayas, Rowena Montecillo, suggested this growth is down to demand for education. She believes that many Korean travellers first come as tourists and later return for extended period to learn English. In terms of total numbers, Japan was the second largest contributor of international arrivals, followed by the US.

Yet as most tourism destinations speak of rapid growth in arrivals from China, Cebu conversely reported a significant decline of 45%, reports the Manila Bulletin Publishing Corporation.

Source: Travel Daily Asia

Cebu Pacific flew 2.8M people in Q3, will serve 12M passengers by yearend

2011-10-18T10:18:00.000-07:00

MANILA, Philippines—The Gokongwei-led Cebu Air Inc., operator of budget airline Cebu Pacific, grew its passenger volumes by over a tenth in the third quarter of 2011, keeping it on track to meeting its full-year goal of serving 12 million people.

In a statement, the airline flew almost 2.8 million passengers from July to September 2011, up by 12 percent year-on-year. This was driven by the 22-percent increase in the company’s international operations. From January to September, CEB had already flown over 8.7 million passengers.

“The number of passengers grew faster than Cebu Pacific’s seat capacity in Q3 2011, so we are very happy with our growth on a traditionally lean travel season domestically,” Cebu Pacific vice-president for marketing and distribution Candice Iyog said.

“We expect these figures to surge further upward with long holidays, more flights and four new Airbus A320 aircraft that enter into service in the 4th quarter of this year,” she added.

The company also boasted of an 84-percent load factor, referring to the number of seats filled on each flight.

Passengers to and from Taiwan grew by 60 percent year-on-year in the third quarter of the year, while passengers to and from Vietnam grew by 56 percent. Traffic to and from South Korea also grew by 58 percent year-on-year in three-month period, as the airline now flies from both Manila and Cebu to Incheon (Seoul) and Busan.

“We just opened 2 new domestic routes, and announced additional international flights starting January 2012. Cebu Pacific’s passengers can continue to expect more of our trademark low fares, ever-expanding network and young aircraft fleet in their travels,” she said.

Cebu Pacific currently operates 10 Airbus A319, 17 Airbus A320 and 8 ATR-72 500 aircraft. By the end of 2011, CEB will be operating a fleet of 37 aircraft – with an average age of less than 3.5 years – one of the most modern aircraft fleets in the world.

Between 2012 and 2021, Cebu Pacific will take in 23 Airbus A320 and 30 Airbus A321neo aircraft orders, and two Airbus A320 aircraft on operating lease agreements. The airline is currently the leading carrier in the Philippines based on the number of passengers served.

Source: Philippine Daily Inquirer

By: Paolo G. Montecillo

Airline row hurts tourism

2011-10-18T10:07:00.000-07:00

THE recent long weekend was a missed business opportunity for hotels, restaurants, transport groups, food suppliers, handicraft, and other tourism enterprises, a malaise that may possibly continue unless Philippine Airlines and the PAL Employees Association settle their dispute soon.

”Domestic and foreign tourists need assurance that they will enjoy their travels, let alone that they would get to their destinations and ride on return flights on schedule,” said Alma Jimenez, president of the Tourism Congress. “The Visayas and Mindanao accommodations are ready and available but would there be a crowd?”

”We hope that the PAL-PALEA controversy will be resolved in time for the October 29-November 1 weekend,” she said.

Jimenez said resolution of the PAL-PALEA dispute would give the tourism players in the Visayas and Mindanao a chance to employ more people and earn more revenues during the long weekend than if the market were thinned out by unpredictable transportation.

During a regional consultation with Tourism Congress members last Saturday, Mindanao hotels estimated a loss in booked business of about 30% overall and the drop in occupancy rates of 50 to 70%. The tuna industry said they are losing as much as P50 million a day, the corresponding revenue value of a daily shipment stock of about 20-26 tons of tuna that did not reach its designated buyers because of cancelled flights.

Jimenez said that Tourism Congress members voiced the need for pre-planned cooperative arrangements among the various tourism sectors and enterprises in anticipation of emergencies and contingencies that may have adverse effects on tourism businesses in general.

“Tourism is always one of the industries where adverse events and disasters create the most negative impact but the industry has rarely been a formal partner in the processes that address these situations. The private sector plans to take a proactive role in managing these situations and help mitigate risks to the businesses and the economy”, Jimenez said.

Source: Journal by: Willy M. Balasa

Cebu airline announces expansion

2011-10-17T13:32:00.000-07:00

ENCOURAGED by the growing number of foreign and local tourists who prefer faster travel to island destinations, Cebu-based local carrier Mid-Sea Express announced its expansion to the cities of Cagayan de Oro and Davao.

The company also said it is scheduled to get a new aircraft before the end of the year.

Mid-Sea Express general manager Erlon Ryan Libiran said they are optimistic about their business prospects because of the growing demand for short hub flights in the aviation industry. He said foreign and local tourists prefer faster transport services to the country’s island destinations.

Mid-Sea Express is a new player in the aviation industry. It first served the Cebu-Bohol route since it started operation this year. The company later added new routes to Bantayan, Camiguin, Siquijor and Caticlan.

Unserved areas

“The goal is to mount flights on unserved areas,” Libiran said during the company’s launching last Friday.

Libiran said their airlines operate on a non-scheduled basis, allowing them to cater to a particular niche market. He said Koreans, who compose Cebu’s top travel market, are among their leading clients.

Cebu recorded 206,885 Korean arrivals in the first seven months of this year.

According to the company, it wanted to promote tourism within smaller islands while still serving the routes and destinations that are in high demand.

“With the large and increasing tourist demand in Bohol, the Cebu-Bohol flights are helping increase the island’s chances of making a name among the world’s travelers, just as Boracay recently did in a recent worldwide publication,” the company said.

The company currently maintains two planes with a combined capacity of 18 passengers.

Mid-Sea Express flies 400 to 500 passengers a month. Later this year, Libiran said the company will mount additional flights to the cities of Davao and Cagayan de Oro.

The has purchased a 21-seater British Aesrospace Jetstream 32,which it expected to be delivered next month.

The new aircraft will complement its existing routes from Cebu to Bantayan, Bohol, Siquijor and Camiguin.

Urgent issues

The company also expects the delivery of a 107-seater Fokker 100 by the third quarter of 2012.

While the company expressed optimism in the industry, Libiran said the government should address urgent issues besetting the industry such as the open skies policy and the aviation safety system.

“The industry’s downgrade by the US Federal Aviation Administration (FAA) to Category 2 hinders airline carriers from mounting flights to other countries and bringing additional foreign tourists to the country. This would also hinder small players like us from getting into their network and system,” Libiran said.

While the open skies policy is beneficial to the industry, Libiran said it should include reciprocity to also allow small players to serve other countries.

Source: SunStar Cebu

Cebu Air gets perks for aircraft

2011-10-16T04:27:00.000-07:00

Gokongwei-owned Cebu Air Inc. is investing P3.5 billion to beef up its fleet of aircraft for the rest of the year.

Trade Undersecretary Cristino Panlilio said the company has obtained incentives from the Board of Investments (BOI) for the acquisition of four A320s set for commercial operations this year.

Panlilio said the company registered the four planes individually since they have different delivery dates and acquisition schemes.

Panlilio said the BOI board granted pioneer status to the two planes under lease purchase, entitling them to six years in income tax holiday (ITH).

He said the other two, which are for the airline’s leasing operation, were registered as non-pioneer with ITH of four years.

"The aircraft can be used both for domestic and international flights and will be ready from November to December," Panlilio said.

The project qualified for registration under the 2011 Investment Priorities Plan as new operator of air transport service.

Cebu Air, a 100-percent Filipino company operating under the airline Cebu Pacific, is a wholly owned subsidiary of CP Holdings Inc. whose parent company is JG Summit Holdings Inc.

Cebu Air owns 33 aircraft all registered with the BOI. The firm has begun acquiring A320s that will be added to the fleet at the end of 2011.

The four additional Airbuses are: A320 No.16, which obtained non-pioneer incentives with delivery and commercial operation in September 2011 to be acquired under operating lease scheme; A320 No.17, pioneer status for delivery and commercial operation by September 2011 to be acquired under operating lease; A320 No.18, non-pioneer, for delivery and commercial operation this month under an operating lease arrangement and A320 No.19, pioneer incentives and for delivery and commercial operation in December 2011 under finance lease.

Cebu Air, said to be the airline with the youngest fleet – an average of 3.2 years as of December 2010 – operates from the NAIA terminal 3 and is the country’s leading domestic carrier, serving the most domestic destinations with the largest number flights and routes.

Cebu Pacific flies to 33 domestic destinations and to 16 international destinations in 10 countries.

Source: Malaya Business Insight By: IRMA ISIP

Tourist arrivals rise

2011-10-16T04:05:00.000-07:00

TOURIST arrivals in the country grew by 11.72 percent in the first eight months of the year from 2,330,584 in 2010 to 2,603,675 visitors this year.

Koreans still account for the biggest number of arrivals, according to the Department of Tourism (DOT).

About 24 percent or 615,218 of the total arrivals in the Philippines were from South Korea. The DOT said the Korean market continued to register a double-digit growth at 29.68 percent, from its 474,395 arrivals last year.

An average of 300,000 arrivals per month was observed.

The largest group of arrivals was in July, with 360,784, while the growth rate was highest in February, an 18.52 percent.

US arrivals accounted 16.49 percent of the total, at 429,280. The US market also grew by 5.32 percent compared to its 407,613 arrivals recorded last year.

Despite the tsunami in March, Japanese visitors continued to travel to the Philippines, with 253,529 arrivals, a 5.41 percent growth from the 240,528 in the same period last year.

In terms of regional sources of visitors, the DOT said the East Asian region accounted for nearly half at 46.71 percent or 1,216,222 arrivals in the first eight months of the year.

The region recorded 16.72 percent growth from its 1,041,980 arrivals in the Philippines in 2010.

North American visitors made up the second largest group, by region, at 19.46 percent with 506,772 visitors. This was up by 6.65 percent from 475,181 arrivals in the previous year.

The Southeast Asian region is the country’s third biggest source of tourists with 217,454 arrivals or 8.53 percent. The region posted a growth of 13.02 percent from 192,410 arrivals last year.

The Aquino administration aims to draw 6.3 million tourists into the country by 2016.

Arrival figures in Cebu were also up.

Cebu recorded 1,131,230 visitors in the first seven months of the year, up by 10.52 percent from 1,023,564 in the same period last year.

The DOT 7 said Cebu’s foreign visitor arrivals grew by 16.26 percent or 473,133 from 406,955 arrivals last year. Domestic arrivals, likewise, grew by 6.73 percent from 616,609 arrivals to 658,097.

Arrivals from Korea grew more than half at 53.01 percent from 135,207 arrivals last year to 206,885 this year. Koreans were followed by the Japanese, with arrival figures growing at 3.28 percent or 87,461 arrivals from 84,686 recorded in the same period in 2010.

The US market grew by 6.15 percent from 41,760 to 44,329 arrivals this year.

Meanwhile, arrivals from China dropped by almost half at 45.38 percent from 26,427 arrivals last year to 14,435 this year. The Australian market, on the other hand, grew by 19.70 percent or 12,755 arrivals this year compared to 10,656 arrivals recorded in the previous year.

Other top markets of Cebu included the United Kingdom with 7,915 arrivals; Hong Kong at 7,612; Germany at 7,567; Canada at 6,550; and Singapore at 6,257.

Source: SunStar Cebu By: Katlene O. Cacho

Airline entry will boost Tawi-Tawi's economy

2011-10-14T12:49:00.000-07:00

BONGAO, Tawi-Tawi -- Officials of this southernmost province foresee that the entry of Cebu Pacific Air (CEB) will boost economic development of this province.

Governor Sadikul Sahali said the entry of another airline company will further enhance the mobility of people and goods from and to this province.

Sahali was among the more than 100 passengers of CEB's maiden flight Friday from Zamboanga City.

Sahali said CEB's entry will boost the tourism industry since the visitors, both domestic and foreign, will have additional choice as to what airline firm they would take.

Prior to CEB entry, Tawi-Tawi is being served by the Air Philippines.

The Zamboanga-Tawi-Tawi route of CEB is being served by an A319 plane, which has 156 seating capacity and will fly on a tri-weekly schedule: Mondays, Wednesdays and Fridays.

Bongao Vice Mayor Leila Muharani Jumdail supports Sahali's statement, citing the growth of the tourism industry has long been delayed due to the non-availability of faster mobility and convenient mode of transportation.

Sahali said it will also boost the income of the fishermen since the entry of CEB provides additional faster mobility for them to transport fresh marine products to key cities in the country.

Agriculture, fishing, and seaweed farming are the leading source of livelihood of the people of this province, with quite a number engaged in the barter trade business.

Copra is the top agricultural produce, followed by root crops, fruits, and vegetables.

All the farmers and businessmen in this province will have to do is to establish business links to the other parts of the country, Sahali added.

Jumdail said the entry of another airline company to this province will also result to cheaper air fare since there will be competition between the stakeholders to attract more clients.

“We are very happy to inform you that this route will be serviced by our state-of-the-art Airbus A319 aircraft manufactured by the Airbus company in Toulouse, France. With its great efficiency and reliability, we are confident that the Airbus aircraft will greatly help in increase the accessibility of Zamboanga and Tawi-Tawi to more visitors, both local and foreign,” said CEB vice-president for Airport Services Jomar Rodriguez.

Source: SunStar Zamboanga by: Bong Garcia

Cebu Pacific plane gets stuck in Cotabato runway

2011-10-14T12:37:00.000-07:00

A CEBU Pacific aircraft bound for Manila was stuck at the runway of Awang Airport in Cotabato City on Friday afternoon.

A source said there was no damage to the aircraft nor injuries and deaths from any of the passengers and crew.

The plane got stuck after touchdown as it was making a turn toward the airport terminal.

In a text message to Sun.Star Davao, Cebu Pacific said that its flight 5J 887 bound for Cotabato from Manila landed safely earlier Friday, but as it was doing its normal turn on landing, it got stuck in a soft spot in the Cotabato airport runway.

Passengers on the flight already deplaned and after some thorough checks, the aircraft returned to the ramp, the advisory said.

"Nahulog gulong sa gilid runway, di na makatakbo, bumaba na lang mga passengers," the source said.

"Nalibing yung tire ng plane sa runway kaya nadelay ang flight, dapat 1:05 p.m. ang flight, pero until now, wala pang advice what time departure po," a staff from Cebu Pacific based in Cotabato said as of 2:30 p.m. Friday.

A passenger who frequently flies to Manila with Cebu Pacific said this is not the first time this has happened.

"It happens all the time. Madalas, narrow kasi ang runway," the passenger said.

Return flight 5J 888 from Cotabato to Manila, using the same aircraft, departed at 3:49 p.m. Friday, the Cebu Pacific advisory said.

Source: SunStar Davao By: (Ana Felicia Dulay/With Malu Cadelina Manar)

Airline strike not afflicting tuna sector: exporters

2011-10-13T13:28:00.000-07:00

The airline Cebu Pacific Air has been in charge of tuna shipments since PAL workers went on strike.

(Photo: Stock File/FIS)

Reports recently made alleging that the strike by Philippine Airlines (PAL) workers has impacted the tuna industry are false. The transport of fresh tuna headed to foreign markets has indeed not been affected by the ongoing labour dispute between the management and workers of PAL, exporters state.

Tuna businesses have been able to rely on alternate companies for help.

John Heitz, export manager of GenSan Aqua Traders, said budget carrier Cebu Pacific Air has been carrying out their shipments during the past two weeks, since PAL flights were first cancelled due to workers’ protests.

“We have not been really affected because Cebu Pacific continues to serve us here [on a daily basis],” he informed, MindaNews reports.

The PAL Employees Association went on strike late last month to protest the laying off of thousands of workers.

Reports alleged that the tuna industry was losing some PHP 50 million (USD 1.1 million) daily due to the PAL flight cancellations.

“The local chamber of commerce also revealed that, for the tuna industry alone, reported losses are to the tune of around PHP 50 million (USD 1.1 million) a day, the corresponding revenue value of a daily shipment stock of about 20-26 tonnes of tuna that did not reach its designated buyers because of cancelled flights,” GMA News quoted the Tourism Congress report as saying.

Heitz disputed it, noting that on a daily average, the five or six fresh tuna exporters could only fly out an estimated PHP 5 million (USD 114,960) worth of consignments to foreign markets such as the US and Japan.

The daily tuna exports sent out on airplanes mainly consist of large, sashimi-grade tuna caught using the handline fishing or the traditional hook and line method.

In contrast, canned tuna products are usually exported via ships, Heitz explained.

Bench Tacumba, executive director of the General Santos City Chamber of Commerce and Industry, said her office did not release any figure on the effect of the PAL flight cancellations to the local tuna industry.

According to industry data, in 2010, fresh/frozen/whole tuna exports reached around USD 81 million, or about just PHP 10 million (USD 229,900) daily export production.

Source: http://www.fis.com/

By Natalia Real

Airline row upsets hotel, tuna industries in Mindanao

2011-10-11T12:21:00.000-07:00

MANILA, Philippines - The ongoing rift between the management of the Philippine Airlines (PAL) and its labor union PAL Employees Association (PALEA) has affected the tuna and hotel industries in Mindanao, the Tourism Congress (TC) said.

In a meeting in General Santos City, representatives of tourism-related enterprises in the south reported huge revenue losses due to flight cancellations and disruptions on regular flights of the country's flag carrier.

Jaime Cura, TC vice president, said the effect of the cancelled flights includes loss in booked business of about 30 percent overall and the drop in hotel occupancy rates as much as 70 percent.

“This was due to the cancelled hotel bookings for conferences, banquets, and other functions of out-of-town groups and entities that had been previously confirmed,” said Cura.

For the tuna industry, the estimated losses are P50 million a day.

“The corresponding revenue value of a daily shipment stock of about 20 to 26 tons of tuna that did not reach its designated buyers because of cancelled flights,” the TC official pointed out.

PAL Vice-President Bong Cruz, who attended the regional consultation, apologized to stakeholders and explained the causes of the PAL-PALEA controversy and the steps now being taken by the airline company.

Cura said the dialogue affirmed the need for pre-planned cooperative arrangements among the various tourism sectors in anticipation of emergencies and contingencies that may have adverse effects on tourism businesses.

Source: PhilStar by: Jun Pasaylo

Etihad Airways posts 39% growth in Q3 revenues to $1.1B

2011-10-10T08:24:00.000-07:00

MANILA, Philippines — Etihad Airways reported revenues growth of 39 percent to US$1.1 billion (Q3 2010: US$785 million) on passenger numbers, up 18 percent to 2.25 million (1.9 million) in the airline’s strongest ever third quarter. Seat factor increased by 3.8 percent to 80.7 percent, the highest quarterly result in its history.

Operating costs rose 12 percent, on a 12 percent rise in capacity, while non-fuel costs rose only 7 percent. The airline has 81 percent of its fuel hedged for the rest of 2011.

Etihad Chief Executive Officer James Hogan said these figures contributed to strong profitability at an EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) level and the airline had moved into monthly operating profitability.

“Despite the continuing challenges of high fuel prices and economic downturn in many of the markets in which Etihad operates, we are seeing strong growth in all our key commercial indicators,” Hogan said.

“We are doing this by creating and marketing the world’s leading air travel product, while maintaining a rigorous focus on costs. Our clear target is to break even in 2011 and this is another big step in the right direction for us.

We are well on track to delivering a continuing financial return to our shareholder,” he said.

The quarter saw consistently strong performance across all markets. Particularly popular routes included those to the Americas (New York, Chicago and Toronto), Asia Pacific (Bangkok, Jakarta, Kuala Lumpur, Colombo, Manila, Sydney and Melbourne), Cairo, London, Dublin, Athens, and Istanbul. Etihad has added six aircraft to its fleet in the last 12 months, enabling the airline to build greater depth into its schedule and increase weekly frequencies to key markets including Paris, Manchester, Milan, Geneva, Brussels, Bangalore, and Manila.

Courtesy of: Manila Bulletin

Hotel Koresco serves 'food for the gods'

2011-10-10T08:13:00.000-07:00

HOTEL Koresco, known for its fantastic golf course, now offers very affordable Golfer's Executive Meals that even non-golfers would really enjoy.

Golfer's Executive Meals, the Ambrosia, in Greek and Roman mythology means, "food of the gods", are served at Hotel Koresco's restaurant.

Veni P. Rocha, sales and marketing officer of Hotel Koresco, said with P195 per serving, guests will be delighted to choose from a variety of one-serve meals to cater to everyone's peculiar taste, the diet conscious and the picky eaters: Lechon Kawali, Ebi Tempura, Chicken Teriyaki, Golden Fried Chicken, Fish with Parmesan Cheese, Koresco's Grilled Pork Belly, and Chicken Adobo.

Rocha said each selection is served with steamed rice and soup that would cater to those who love to eat and dine with family and friends.

The said meal, launched on October 4, is in keeping up with our commitment to excellent service and food, Rocha said.

Rocha emphasized that while enjoying the meal, guests can enjoy the majestic view of the hotel located on the airport road, inside the world-class Pueblo de Oro Golf and Country Club, Cagayan de Oro City, which is just five minutes away from the airport and 15 minutes to the city proper.

Source: SunStar Cagayan De Oro

New airline expands in Davao City

2011-10-10T08:06:00.000-07:00

A NEW Cebu-based airline is now expanding its operation and adding new routes to connect Cebu-Bohol-Davao and Cebu-Bohol-Cagayan de Oro.

Mid-Sea Express will have its delivery of a new British Aerospace Jetstream 32 before the end of this year.

This wide-body, solely business class aircraft will complement its existing routes from Cebu to Bantayan, Bohol, Siquijor and Camiguin.

Also, to open soon will be the highly anticipated route of Cebu to Caticlan, with affordable fares both to and from Boracay.

Mid-Sea Express' vision of "Bridging the Island" has been achieved through their consistent additional of routes to both Filipino and foreign travelers.

The goal of Mid-Sea Express is to further promote the tourism industries within the smaller islands while still serving the routes and destinations that are in high demand.

With the large and ever-increasing tourist demand in Bohol, the Cebu-Bohol flights are helping increase the island's chances of making a name among the world's travelers.

Source: SunStar Davao

Travel agents ‘still trump internet booking’

2011-10-10T07:53:00.000-07:00

TRAVEL agents still trump Internet airline reservations.

Just ask Maria Paz Alberto, president of Ark Travel Express Inc.

While booking tickets over the Internet can be done quickly, at the click of a button, travel agents provide invaluable experience, allowing their customers to enjoy the best offers available.

"Travel agencies are a better choice because we can advice them of better options, passport and visa requirements, good hotels, travel insurance protection, modes of transportation, among others. These explain why a big percentage of people are still buying (tickets) from travel agencies,” she told Sun.Star.

She's correct -- at least partially. After all, not everyone has Internet access.

Only 33 percent of estimated 94 million Filipinos are online this year, which is five percentage points below than the Southeast Asian average of 38 percent, research firm Nielsen said in its soon-to-be-released inaugural Southeast Digital Consumer Report.

While online booking saves time and fuel and allows access to flight schedules, Alberto said Internet transactions also have their share of drawbacks.

Alberto, the former president of the Philippine Travel Agencies Association (PTTA), said changing details in a flight itinerary could entail additional cost such as “high” surcharge for rebooking flights.

However, Alberto acknowledged that the advent of new technology also helped the aviation industry to offset costs on paper.

“Tickets are sent to clients by email and payments are done through online banking. We in the travel industry have been practicing that. But still, we have to print the tickets as this is a requirement in our airports,” she said.

Officials from the country's two biggest carriers Philippine Airlines (PAL) and Cebu Pacific were unavailable for comment regarding their electronic ticketing services as of this posting Tuesday.

With more Filipinos getting accustomed to plane travel, some carriers, travel agencies, and airline technology providers come together to entice the riding public to take advantage of cheap deals during the lean season (October 2011 to March 2012).

Except for the last two weeks of October (semestral break) and the Christmas season, Alberto asked the public to take advantage of the promo dubbed "Travel Madness Weeklong Sale" which runs from October 3-8 and October 3-15 for booking and ticketing periods, respectively.

Aside from encouraging people to travel during the low season, Alberto said the project will further educate the travelers in making advanced purchases for their trips.

Participating airlines and cruises, meanwhile, are Air China, Cathay Pacific, China Airlines, Eva Air, Gulf Air, Hawaiian Airlines, Malaysian Airlines, Singapore Airlines, PAL, Norwegian Cruise Line, and Star Cruises.

Source: (Virgil Lopez/Sunnex) SunStar

Laguidingan airport 90% complete

2011-10-09T08:26:00.000-07:00

THE P7.853-billion Laguindingan International Airport (LIA) in Moog, Laguindingan, Misamis Oriental, is almost operational, the Regional Development Council (RDC) in Northern Mindanao announced.

Misamis Oriental governor Oscar Moreno, who concurrently chairs the RDC in Northern Mindanao, said construction officials of the long-delayed project are now looking into concerns on air navigation facilities to make the airport ready to service all flights coming in and out of the region by the last quarter of 2012.

Few months ago, Moreno was worried that the airport's operation will be moved to 2013, following the resignation of Department of Transportation and Communication (DOTC) Secretary Jose De Jesus early this year.

"The ongoing construction will soon become a major hub for export of agricultural and trade products, and for the import of tourists to the areas around Cagayan de Oro and Iligan City. This is why we want to establish state-of-the-art facilities at the airport," he said.

The governor, in the meantime, wants the RDC to focus on other possible developments to be introduced in the region aside from the completion of the Laguindingan Airport Development Project (LADP).

He said the RDC has to consider the increasing number of passengers and cargo traffic along the Cagayan de Oro-Iligan Corridor (CIC), which is seen to boost the economic development in the region and improve air transportation safety.

Road widening, business opportunities, environmental considerations and changes in the land uses of municipalities along the CIC must be put to RDC's list of priorities this year.

Moreno said the RDC will initiate the formulation of a Laguindingan Airport master plan -- to make the optimal use of the airport and set out how it shall handle the growing demand for air travel in the coming years while considering the economic, social and environmental dimensions of the airport's operation within 2015 and 2030.

By: Nicole J. Managbanag

SunStar Cagayan De Oro

The Historic Landmark Manila Hotel The Grand Dame of Hotels Continues Tradition of Excellence Celebrates its 99th Anniversary October 6, 2011

2011-10-05T10:50:00.000-07:00

MANILA, Philippines — The Manila Hotel is the oldest premiere five-star hotel in the country built in 1909 and opened in 1912, centrally located in the heart of the Manila Bay Area. Within walking distance is the Rizal Park and Intramuros, an old walled city built during the Spanish period. It celebrates on this day its 99th year of serving as the Venue of Historical Events and Seat of Hospitality for the Nation’s Guests and Official Visitors.

The management of the Manila Hotel justly takes pride in its past which has made it a historic landmark and a part of the nation’s patrimony, for it was the site for crucial decision that contributed to our country’s journey towards nationhood.

It was the guest house of the American Colonial Administration, the residence of General Douglas MacArthur when he served as Military Adviser to President Manuel L. Quezon under the Commonwealth Government from 1935 to 1941. During the Japanese Military Administration period, it became the seat of government under General Masaharu Homma.

It was also the site for conventions of the Nacionalista Party and the Liberty Part that nominated President Ramon F. Magsaysay, President Carlos P. Garcia, President Diosdado P. Macapagal, and President Ferdinand E. Marcos.

The 1971 Constitutional Convention was also held at the Manila Hotel; here President Carlos P. Garcia was elected as the Convention President, succeeded later by President Diosdado P. Macapagal. It also served as the venue for the Philippines’ Oscars, the FAMAS Awards, for many years. From 1961 to 2002, the Manila Hotel hosted twelve glittering incarnations of the annual wards night. The hotel has the offices of several foreign news organizations, including The New York Times.

In keeping with its tradition of being a showcase of Filipino culture and tradition, in addition to the General Douglas MacArthur Suite, the present management refurbished the Presidential Suite for visiting Heads of State, and redecorated suites named in honor and in memory of the country’s great heroes –Dr. Jose P. Rizal, General Emilio Aguinaldo, Andres Bonifacio, and Gabriela Silang.

Defined by its history, elegance, and world-class service, the Manila Hotel maintains to be the choice hotel of the most distinguished clientele. Over the years, Manila Hotel continuously provides the best services and amenities for a truly memorable experience.

In 2008, Manila Hotel underwent a series of dramatic renovations in time for its grand centennial celebration on October 6, 2012.

All of Manila Hotel’s rooms are fully refurbished and renovated and are fully equipped with the most modern facilities and amenities. The new guest rooms exude elegance and sophistication while showcasing the beauty of authentic Philippine interior design.

The rooms are further made surreal by huge windows that provide a breathtaking view of the bay and the fabled Manila sunset. All rooms make use of the Ving Card electronic lock system for maximum security. A 24-hour butler service is available for MacArthur, Presidential, and Penthouse Suites. More, it is the first Philippine Hotel to offer Home Box Office (HBO), among other television network systems.

The Manila Hotel’s Pool and Garden, Spa, Health Club, VIP Lounge, and the MacArthur Lounge are among the newly renovated areas. Further, the Mabuhay Palace was also launched in 2009, and it is one of the best restaurants in the country, offering the finest Chinese Cuisine.

Additionally, the new Café Ilang-Ilang was launched in December 2010. Spacious and designed for casual luxurious dining, this modern events buffet restaurant is stunningly decorated and divided into nine buffet sections that are artfully themed to depict the countries they represent. The buffet offers Asian, Mediterranean, European, and Western dishes.

Aside from that, a stunning open Pan-Asian kitchen at its core offers cuisines from China, Korea, Singapore, Malaysia, and the Philippines. The Sampaguita Hall was also launched on September 22, 2011.

Besides playing host to the nation’s official guests and visiting personalities, the Hotel has likewise been the symbol of happy memories of debuts, birthday parties, wedding receptions, anniversaries, conferences, conventions, exhibitions, and other occasion with the elite of Manila society as its regular patrons.

For meetings and other occasions, the hotel offers eight function room including the grand Fiesta Pavilion ballroom that can accommodate up to 2,500 people, fully equipped with modern meeting and presentation facilities.

The Manila Hotel is an affiliate of the Philippine Convention and Visitors Corporation (PCVC) and the Movement of Incentive Travel Executives (MITE).

The Manila Hotel’s 99th Anniversary is an auspicious occasion for its Management and Staff to rededicate themselves to their mission of providing the country the example of elegance and gracious living and hospitality, as the Manila Hotel continues its tradition as witness to history and custodian of some of the traditions of the Filipino.

We congratulate the historic landmark Manila Hotel headed by its Chairman, Dr. Emilio T. Yap, and its President, Atty. Jose D. Lina Jr., Directors, Officers, Staff, and its valued friends and clientele, on the occasion of its 99th Anniversary and express our confidence in their unstinting quest for excellence, a venue for great events and memorable gatherings. Mabuhay!

Courtesy of Manila Bulletin

Chinese airline buys into Zest Air

2011-10-04T13:23:00.000-07:00

HAINAN Air, China’s largest non-state-owned airline, is buying into budget carrier Zest Air owned by Alfredo Yao.

Yao, chairman of the Zesto Group, has signed a memorandum of understanding with officials of the Hainan Air on the sidelines of the state of visit President Aquino to China recently.

Trade Undersecretary Cristino Panlilio said the partnership would allow the airline to fly direct to Hainan province.

Panlilio said the carrier would be able to add more flights and serve more passengers,

"In every destination (to China), there is enough volume," Panlilio said.

He added Yao would retain controlling interest in the joint venture.

Yao said did not disclose how much equity Hainan Air is taking but said under the law; foreigners are allowed up to 40 percent ownership in a local airline.

"They are still doing due diligence and that will take time," Yao said.

According to Yao, Hainan Air’s entry into the company is part of Zest Air’s strategy to expand its reach overseas, particularly China.

To support the expansion, Yao said Zest Air will acquire nine aircraft in 2012.

Panlilio explained the MOU between Hainan and Zest Air was not part of the mass signing of agreements witnessed by President Aquino during his trip in China.

By the end of the year, Zest Air will have a fleet of 10 aircraft – six Airbus planes and four Modern Ark 60s. The company would have 19 by next year,

Zest Air plans to increase more flights for the routes Kalibo-China, Cebu-China and Manila-Singapore. It also plans to mount flights to Taipei, Palau, Singapore, Bahrain and Dammam.

Zest Air flies to Incheon and Pusan in South Korea from Kalibo and Cebu.

The airline flies to Boracay via Kalibo, Bacolod, Busuanga, Calbayog, Catarman, Cebu, Davao, Iloilo, Legazpi, Marinduque, Masbate, Puerto Princesa, San Fernando, San Jose, Tablas, Tacloban, Tagbilaran and Virac.

Hainan Airlines is the flagship of HNA Group, a diversified group with air transportation as its core business. HNA businesses covers other industries such as tourism and service, airport management, logistics, hotel management, retailing, finance and other related businesses.

Source: Malaya Business Insight

Is PAL worth saving?

2011-10-04T12:42:00.000-07:00

We can perhaps look at what’s happening at Philippine Airlines today as something like birth pain. Maybe all the unpleasantness happening are necessary so that a new Philippine Airlines can emerge that’s not only profitable but a worthy flag carrier of the Republic. But I am not that sure.

In all honesty, PAL is now a seriously damaged brand. Its passengers were used by management and labor as hostages in their continuing battle of wills. Sara Soliven de Guzman, my colleague on the Opinion side of this paper related how some passengers were kept inside an aircraft for two hours or so. It was evil of labor to allow such a thing to happen and it is shamefully inutile of management to have been unable to do anything about it for that long.

Then there are all those cancelled flights and transferred flights from one terminal to another and of course all those horrendous delays. Anyone on Twitter the past few days know how horrible the situation was. And as I wrote last Monday, it was unpardonable for PAL management to have failed to put contingency measures in place even days after the crisis began. It is par for the course for PAL. Some years ago, I was stranded in Los Angeles because PAL pilots walked out.

Assuming it is still possible to save PAL, is it still worth saving? I am not so sure that it is. I know investment bankers have been doing due diligence on behalf of prospective buyers of PAL despite their public denials. But if these buyers really want to own an airline, wouldn’t it be better for them to start from scratch instead of buying what remains of PAL?

I remember a conversation I had with John Gokongwei in his Shanghai residence some years ago about this. Mr. John made a bid for PAL together with the Lopezes when it was put up for privatization. They lost the bid and Mr. John told me that evening in Shanghai that he was so lucky that happened. Because he really wanted to get into the airline business, he started from scratch with Cebu Pacific. Now CebPac flies more passengers with less employees than PAL and is quite profitable using its budget airline business model.

What is the value of an airline to begin with? Surely an airline is valuable not only because of its fleet of aircrafts, many of which are leased and not owned by the airline. The value of an airline is its reputation for excellent service — on time departures and arrival, prompt courteous service at check-in and in-flight and of course, safety.

All those things that make an airline achieve a valued reputation are made possible by the people who work for the airline. After all the anguish of the past week, things will never be the same again for PAL, people wise. The rank and file workers of PALEA may be gone but the flight attendants are still there and their relationship with PAL management had been shaky. If it wasn’t, the flight attendants in the flight mentioned by Ms. de Guzman in her column would have been more helpful to the passengers.

The finances of PAL, while improving, are still not that great. It is very vulnerable to upward oil price movements. An Ateneo student, a child of PAL employees and who described herself as the illegitimate daughter of Lucio Tan because she owes her education to her parents’ job in PAL, wrote an emotional blog on the heartlessness of the PALEA layoffs. She cited PAL’s profitability of P5 billion as proof that there is no need to carry on the outsourcing strategy.

That’s the problem with the Philippine Peso. People see a billion pesos and they think that’s a lot of money. Well, it is for ordinary mortals like us but for an international airline, a billion pesos is nothing much. It could be just the amount of money PAL will lose if oil prices go up by $1 a barrel and we know by how much oil prices move up when it does move up these days.

I understand that when an A320 goes for a full tank of jet fuel, it costs about a million pesos to fill up 23,250 liters. A B747 with its 210,000 liters capacity will cost P9 million to fill up. So let us not get lost in the millions and billions in a business like the airline industry’s and make unwarranted conclusions about profitability.

PAL lost $10.6 million for the first quarter of this fiscal year, which ended June 30, compared with a net profit of $31.6 million a year earlier. It made $72.5 million in the 12 months up to March this year but lost $14.4 million the previous fiscal year. I understand PAL lost $312 million over two years and that’s P13.4 billion of losses right there at P43:$1.

PAL has also seen a gradual slowdown in traffic demand, especially for leisure travelers. Even if it has more seats, CebPac already flies more passengers. All of PAL’s competitors in the domestic and most competitors in the Asian regional markets are budget carriers (the latest one being Air Asia Philippines) with lower overhead, thanks to outsourcing. If it wants to be competitive, it has to adopt a business model like that of its competitors.

Should MVP and RSA or any prospective buyer be looking at PAL’s fleet of 36 aircrafts as reason enough to buy PAL? Probably not. The Asian Wall Street Journal reported that PAL’s fleet “needs to be replaced with newer technology and more fuel-efficient aircraft over the next few years as they reach the end of their economic lives.”

The most valuable assets of PAL now are its routes. But is it worth buying the whole airline, staff headaches and all? Probably not. If PAL is allowed to go under, its routes will have to be redistributed by government to those interested and capable like PAL’s current competitors or a new airline that will rise from its ashes.

From the perspective of Lucio Tan, I get the impression that the taipan has had it and is looking for a way out that is least painful. He probably regrets making the decision to take over PAL management from Tonyboy Cojuangco over some disagreement. He has lost more money on the airline than that initial investment. I am told he kept on putting in fresh capital to keep PAL flying because he could not bear the thought that he has failed to turn it around.

But the taipan is getting old and if he was able to suppress his ego enough to sell control of his tobacco company to Philip Morris, he has less emotional ties to Philippine Airlines than to Fortune Tobacco. Besides, he now has AirPhil Express, a new airline with the right business model that will keep him in the airline industry. Government, even if political pressure is exerted to take PAL over, does not have the resources to get the airline back.

Maybe PAL should just be allowed to fly into the sunset the same way that the proud PanAM, the international flag carrier of the United States for many years, was allowed to fade away when the economics of that airline no longer made sense. With its shaky finances and now, its damaged brand reputation due to labor problems, there may no other choice.

This is not heartless capitalism at work. This is just the reality of doing business... specially in today’s extremely competitive world. If this happens, thanks to PALEA, 7,000 instead of 2,000 jobs would have been lost. They should have learned from the American auto workers union that worked with management to save GM and Chrysler. It may be too late for PAL now.

Source: DEMAND AND SUPPLY By: Boo Chanco (The Philippine Star)

CEB marks one year of Beijing operations with seat sale

2011-09-28T08:56:00.000-07:00

The Philippines’ largest national flag carrier, Cebu Pacific (PSE:CEB) flew 41,615 passengers in its first year of Manila-Beijing-Manila operations.
The airline launched its longest international route on a thrice weekly flight schedule last September 5, 2010.
“CEB is proud to offer its trademark low fares to Beijing, encouraging travel and trade between Manila and China’s capital city. We attribute the good loads for our Beijing flights to increased promotions of Philippine destinations in China, and constant seat sales,” said CEB VP for Marketing and Distribution Candice Iyog.

To further boost travel between Manila and Greater China, CEB offers a seat sale from September 27 to 29, 2011 or until seats last.

Passengers can buy seats from Manila to Beijing at CNY 228, Guangzhou and Shanghai for travel from November 1 to December 31, 2011. They can also buy CNY 138 seats for travel from January 1 to February 29, 2012.

CEB also offers CNY 78.02 or MOP 98 seats from Clark to Macau (for travel from October 1 to December 31, 2011), CNY 133.74 or MOP 168 seats from Manila to Macau (for travel from November 1 to December 31, 2011), and CNY 151.66 or TWD 688 seats from Manila to Taipei (for travel from January 1 to February 29, 2012).

“With the arrival of more brand-new aircraft in the last four months of 2011 until 2021, CEB will continue looking for more opportunities for expansion in Greater China. We believe that tourists from Greater China will continue to be interested in the many Philippine destinations we fly direct to such as Laoag, Cebu, Boracay and Palawan,” she added.

Iyog said passengers may also travel to select domestic destinations which are on sale.

For travel from November 1, 2011 to March 31, 2012, CNY 13.24 seats are available from Manila to Laoag, through www.cebupacificair.com or through travel agents on Amadeus.

Passengers can also buy seats as low as CNY 58.39 from Manila to Cagayan de Oro or Zamboanga, for the same travel period.

Meanwhile, for travel November 1-December 31, 2011, those going from Manila to Dumaguete or Roxas can avail of seats as low as CNY 88.49.

Source: ITCM

Aviation industry asks gov’t to deal with safety systems to regain ‘category 1’ status

2011-09-28T08:40:00.000-07:00

APART from the call of domestic airline companies for a fair open skies policy, the government should also double its efforts in improving the country’s aviation safety system if it wants to get a large number of tourists.

Philippine Airlines assistant vice president for government affairs Jose Perez de Tagle said that it is not only reciprocity in open skies policy that they are actively pushing, industry players are also hoping that the country will regain the “category 1” status of its aviation safety system after it was downgraded by US Federal Aviation Administration (FAA) to category 2 in 2008.

“A rating upgrade is important if the country wants to boost its tourism industry, apart from the efforts on aggressive marketing promotions, maintaining peace and order as well as product development,” de Tagle said in an interview.

Important

A rating upgrade is important especially for airline companies that have plans to either mount or expand operations in United States.

De Tagle said the government should urgently address the issue as this has already burdened airline companies.

The FAA downgraded the Philippines’ civil aviation rating to category 2, citing policies and systems that were below standards set by the International Civil Aviation Organization (ICAO) of the United Nations, including the lack of qualified safety personnel.

According to FAA, category 2 means a country either lacks laws or regulations necessary to oversee air carriers in accordance with minimum international standards, or that its civil aviation authority is deficient in one or more areas, such as technical expertise, trained personnel, record-keeping or inspection procedure.

But de Tagle said the country’s aviation safety system downgrade has nothing to do with the airlines.

“It is the government that doesn’t have resources and trained safety personnel that operate, audit and regulate,” he said.

Trainings

He said airline companies constantly conduct trainings to improve their workforce as well as enhance airport navigations systems to ensure airline’s safety systems. He said they have been actively doing their share in the promotion of the country’s tourism industry.

In a report, the Civil Aviation Authority of the Philippines (CAAP) announced that the country is preparing for an audit on the country’s commercial aviation system this December to be conducted by a team from the US FAA.

Source: Sun.Star Cebu

More flights and tourists seen owing to open skies policy

2011-09-27T08:09:00.000-07:00

While a few have dismissed the Aquino government’s pocket open skies policy as a failure, some find such judgment too early because the Philippines has just begun getting more planes fly over its skies and more tourists enjoy its sun, sea and sand.

Last March, the Aquino government adopted a pocket open skies policy through Executive Order 29 (EO 29), which liberalizes the country’s secondary airports other than the Ninoy Aquino International Airport (NAIA) by allowing more foreign carriers to fly and bring in more tourists. It also reorganized the Philippine air negotiating panel that deals with bilateral air service agreements through EO 28.

Carmelo Arcilla, Civil Aeronautics Board (CAB) executive director, said, “The full effect of open skies policy remains to be seen. But its progressive implementation has led to a marked increase in tourist arrivals in the Philippines or flights to and from the country."

He told GMA News Online the open skies policy has also seen the emergence of more Philippine carriers and the expansion of their services. “In recent years, we have seen more and more carriers operating to other gateways such as Clark (Pampanga), Kalibo (Aklan) and Cebu."

Singaporean, Malaysian and Australian carriers have also launched operations in Clark’s Diosdado Macapagal International Airport such as AirAsia, Inc., Air Asia Berhad, Tiger Airways and Jestar. “So, it’s not accurate to say that the implementation of open skies policy is a failure," he said.

Travel agents said freeing up the country’s skies is timely. “By decongesting the airport in Manila, it is but natural that we use other gateways so that international carriers may fly and bring in tourists to our country," said Aileen Clemente, president of the Philippine Travel Agencies Association (PTAA), which represents the country’s travel sector with about 150 members of outbound travel agencies and inbound tour operators.

Open Philippines

In an exclusive interview with GMA News Online, Clemente, also president of Rajah Travel Corporation, said opening the country’s skies is also symbolic. “That the Philippines is open, not just for global aviation business, but also for international trade."

Moreover, the open skies policy encourages competition in the airline industry. “Free-market competition forces airlines to improve their services and drive down prices. The benefits ultimately redound to the travelers and will serve as incentive for them to fly to the Philippines," said Benito Bengzon Jr., assistant secretary of the Department of Tourism (DoT).

He told GMA News Online that more flights into the country mean more exchange of tourists and goods as open skies agreements increase both passenger and cargo traffic between countries.

The geography of the country, which is an archipelago, should also be considered in promoting tourism through open skies. “We are unlike our ASEAN neighbors which share a common border. So access to our country is most heavily from air, followed by sea. Thus, we have to encourage and support our carriers to be competitive in the market," Clemente said.

Some airlines fear job and revenue losses as a result of a liberalized airline industry. But Clemente thinks the airlines are up to the competition. “I’ve seen their plans. Each foreign or local carrier faces these challenges all the time, along with fuel costs. Any business faces this."

The Department of Labor and Employment has been meeting the airlines to determine the labor needs of the industry. It is also working with the Department of Education on ways to ensure a constant supply of work force by improving their education and skills.

State policy since 1995

The Philippines has progressively adopted the open skies policy since the administration of President Fidel Ramos through EO 219 issued in 1995. EO 219 allows multiple airline designation and unlimited freedom traffic rights based on reciprocity and national interest.

Arcilla said EO 219 paved the way for the entry of carriers such as Cebu Pacific, Air Philippines, Zest Airways and SEAIR.

The Philippines has bilateral air agreements with 65 countries. It recently conducted talks with Indonesia, Malaysia, Sri Lanka and Papua New Guinea.

Other ASEAN countries have also adopted the open skies policy. “Singapore has embraced open skies to promote Singapore as a hub. However, Indonesia and the Philippines, with their strategic location and large population, are taking a progressive approach to liberalizing their skies," he said.

He said the ASEAN is aiming at establishing an ASEAN Single Aviation Market, similar to that of the European Union on a step by step approach.

The Philippines and other ASEAN members have signed the ASEAN Multilateral Agreement on Air Services and the ASEAN Multilateral Agreement on the Full Liberalization of Air Freight Services, which took effect in January 2010.

Arcilla cited as an example the sharp increases in tourist arrivals in Kalibo, Aklan, where the premier resort Boracay island is located, as a result of direct international flights to its airport.

But he said allowing more flights does not automatically translate to increased tourist arrivals. “Infrastructure limitations, peace and order, connectivity problems, among others, may also be primary factors in encouraging tourists to come to the Philippines."

Sun, sea and sand

The government aims to double tourist arrivals in the country from 3.52 million in 2010 to more than 6 million by 2016 as part of the National Tourism Development Plan.

Bengzon said the Philippines still attracted 3.52 million tourists last year despite the Manila hostage crisis in August 2010.

“There was a marked drop in visitors in months following the incident. But strong performances by our other markets in East Asia, our best performing region, and elsewhere helped us surpass our targets," he said. The East Asian market includes China, Japan, Korea and Taiwan.

Government data show a 27% decrease in the number of Hong Kong tourists from January to June this year, which totalled 56,458 compared to 71, 867 in 2010.

To ensure the safety of tourists, Bengzon said the government is implementing the Tourism Oriented Police for Community Order and Protection Program, which has trained more than 1,000 police officers now deployed in various destinations across the country.

He said the government has also stepped up its marketing efforts in Hong Kong. “DoT led the county’s participation in the International Travel Expo, one of the largest travel and trade events in Hong Kong. We have also organized a series of familiarization trips for the Hong Kong media."

The government has also appointed a marketing representative for Hong Kong and Macau to intensify the country’s drive to regain the confidence of Hong Kong tourists.

Despite these problems of the tourism industry, the Philippines still has more positive attributes. “Our country’s extraordinary natural beauty and warm people are only two of these. We continue to communicate this message in our various dealings abroad, in tourism trade fairs for instance," Bengzon said.

“The Philippines is generally a sun, sea and sand destination. To the Asian market, the country’s lure has been its natural endowments, shopping, culinary and recreational draws," he said.

He said with the growth of low-cost carriers, regional travel has become more affordable and connectivity within the archipelago has improved. “Beyond Asia, the picture that beckons the long-haul traveller is of exoticism, therefore bordering more on culture and history and value-for-money experiences."

By: TINO B. PAMINTUAN
OMG, GMA News

Marco Polo to run new hotel in Ortigas opening 2013

2011-09-26T09:16:00.000-07:00

MANILA, Philippines — Marco Polo Hotels is managing a new hotel that will open in the Ortigas Business Center while it continues to talk to potential hotel owners the possibility of operating a new hotel in the Manila Bay area.

In an interview, Marco Polo president Steve Kleinschmidt said the new Ortigas hotel will be open in late 2013 or early 2014. Currently, they have completed the foundation and are now building the podium.

He said this contemporary 5-star hotel will feature 313 rooms and suites including Marco Polo’s signature Continental Club Floor, extensive meeting facilities with a Ballroom and 8 function rooms.

Dining options include an all day dining restaurant, a Chinese restaurant, a lobby lounge and a Sky Bar. The recreation area will feature an indoor swimming pool, health club and spa.

Kleinschmidt said the hotel is being built by Xin Tian Ti (XTT) which is a development corporation established by First SLP Holdings to manage the hotel and tourism-related businesses.

First SLP Holdings fully owns JS Unitrade Merchandise Inc. which has emerged as one of the top 300 corporations in the country as a prime mover of baby care, feminine hygiene, and geriatric care products with annual revenues of over $100 million.

Kleinschmidt said Marco Polo is looking for a hotel to operate in the Manila Bay area which they see as having the right fit for their brand, after noting that Makati is already too competitive.

While Marco Polo is not going into gaming despite the four major hotel-casino projects being developed in the area, Kleinschmidt said they are open to operating a hotel portion of a mixed-use development.

He noted that recent developments in the tourism sector, including the development of major hotel-casino projects, may revitalize the Manila Bay area and they want to be part of this growth.

Kleinschmidt said the hotel industry in Manila has a very stable market and this makes it very attractive to hotel management companies like Marco Polo.

He said they are already talking to some groups that are planning to open new hotels in the area although none of them can be disclosed yet.

Marco Polo already operates two hotels in the country with the first in Davao City followed recently by the one in Cebu City.

Meanwhile, Federal Land Inc., the property development arm of the Metrobank group, is developing a P3.5 billion high-end residential condominium project which will be co-branded with the adjacent Marco Polo Hotel.

In a press briefing, Federal Land president Alfred Ty said the Marco Polo Residences will be a two tower project offering a total of about 400 condominium units as well as seven luxury two-level villas.

Ty said they are investing at least P3 billion to develop the project and expects to generate revenues of about P3.5 billion from it.

According to Ty, market reception has been strong with the first tower’s 170 units already 80 percent sold while they have already sold 40 percent of the second tower’s P230 units.

“Real estate developers are realizing that they can put a big premium on the pricing if they have that branding,” said Marco Polo Hotels president Steve Kleinschmidt.

Source: Manila Bulletin