wonderfull flight with Cebu Pac

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

(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.

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

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

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

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

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

Airline entry will boost Tawi-Tawi's economy

 

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

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

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 

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

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

New airline expands in Davao City

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

Laguidingan airport 90% complete

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

Chinese airline buys into Zest Air

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?

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.

CEB marks one year of Beijing operations with seat sale

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

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

Cathay Pacific appoints new executives

MANILA, Philippines — Martin Xu has been named Cathay Pacific Philippines new Country Manager following Ed Higgs’ 3-year stint in the position. The transition coincided with the carrier’s Chicago destination launch at the Manila Polo Club, where Xu was officially welcomed to the team.

A graduate of the prestigious Chinese University of Hong Kong, he joined the premium carrier in 2002 as a management trainee, and gained experience by working in its different departments including marketing, inflight services and commercial sales. He became manager for East Indonesia in 2007, and moved on to become the International Affairs Manager in 2009 — also the last position he held before taking over the reins of Cathay Pacific’s Philippine operations.

Xu, who has been with the airline for 10 years, has conveyed his enthusiasm for his new post and aims to maintain the carrier’s strong performance in the past years.
“I look forward to working with a talented team to continue strengthening Cathay Pacific’s leadership position in the Philippines. The airline has always been known for its high quality and service standards, and consumers can rest assured that we will work tirelessly to provide them with the kind of experience they’ve come to expect from us, and to give them more reasons to fly Cathay Pacific.”

Other movements within the Cathay Pacific Group include newly appointed Cebu Manager Maggie Wong and Dragonair Chief Representative Walter Li. Wong, a Ball State University graduate, first joined the carrier in 2008 as Assistant to Director Cargo, subsequently becoming Assistant to General Manager SE Asia, Acting Manager for Penang, and finally, Executive Assistant to Chief Operating Officer Cathay Pacific Airways Ltd. Li, on the other hand, has a graduate degree in accounting from Washington University in St. Louis. He served as a Personnel Officer for the airline prior to being appointed to his latest post.

 

The Cathay Pacific Group offers passenger and cargo services to 145 destinations in Asia, North America, Middle East, Europe and Africa. Operating over 120 wide-body aircraft, the Group flies one of the youngest fleets in the air. The high level of personal service the Cathay Pacific Group offers sets it apart and wins it passenger loyalty and industry awards.

 

Source: Manila Bulletin

PAL cuts selected domestic and int'l flights for time being

MANILA, Philippines — Philippine Airlines (PAL) is reducing the number of selected domestic and international flights for a limited period as the flag carrier prepares for the transfer of its catering, ground handling and call center reservations units to third party service providers on October 1, 2011.

Boeing's 787 aims to raise bar in comfort

All Nippon Airway (ANA) employee Yong Choi looks at the entertainment controller while seated in the first Boeing 787 Dreamliner to be delivered to the Japanese airline at Boeing's Everett factory August 6, 2011.

Credit: Reuters/Robert Sorbo

LONDON (Reuters) - Dressed in specially designed All Nippon Airways (9202.T) livery, with a big, bold, blue "787" splashed at its fore, Boeing Co's (BA.N) Dreamliner will fly from its Seattle birthplace to Tokyo on Tuesday, and, just over a month later, begin active service for the Japanese carrier.

Loyal passengers of other 787-recipient airlines will have months, possibly years to kick their heels before experiencing the high-tech, $185-$218 million craft. Should they wait with bated breath for what Boeing 787 Chief Project Engineer Mike Sinnett has called: "The most technologically advanced commercial airplane in history"?

Marketed as a panacea to passenger discomfort, the Dreamliner's inauguration is, after three years of delivery delays, being closely monitored by the travel industry.

 "Comfort and cost are concerns of the business traveller and the 787 will deliver extreme advancements in fuel efficiency and many traveller features that will improve the journey," said Michael Qualantone, senior vice president & general manager, American Express Global Business Travel.

Indeed, this twin-engine, bendy winged, widebody craft has raised the bar for fuel efficiency. Some 50 percent by weight of the 787 airframe is lightweight carbon-fibre composites that could, Boeing says, help reduce fuel costs by 20 percent.

Emirates Airline says no drop in demand yet

Emirates airplanes are seen at the airport in Dubai October 30, 2010.

Credit: Reuters/Ahmed Jadallah

 (Reuters) - State-owned carrier Emirates Airline EMIRA.UL is not yet seeing a downturn in business and bookings for the next few months are at high levels, even as other airlines warn stuttering economies are affecting sales.

"There are lots of places Lufthansa doesn't fly to," he said, citing places such as many Africa cities, Australia and Indonesia. "We do, and the Germans want to go there.""As yet, fingers crossed, we have not seen any diminution of demand," President Tim Clark told Reuters in an interview at Hamburg airport.
Lufthansa (LHAG.DE) last week warned on profits and said it would offer fewer seats on its planes this winter than previously expected.
In contrast, low-cost rival easyjet (EZJ.L) lifted its guidance for the year, boosted by business passengers.
Clark said booking levels were in the high 70 percent range for November, which he described as strong for the time of year.
Clark, who flew into Hamburg on an Airbus A380 superjumbo as part of the airport's 100th anniversary celebrations, said the UK and Germany were doing well, while its Athens operations were seeing good load factors and yields.
"Our biggest single problem is fuel, but that's coming off now, he said.
"You've got the euro and sterling going through the floor, and that gives us sleepless nights because so much of our income comes out of the euro zone and the UK but on the other hand, the non euro zone currencies are stronger."
PLANES AND SLOTS
Clark said fast-growing Emirates, which is the biggest A380 customer with 90 orders placed, was not interested in taking off any planes from Air Berlin (AB1.DE), which is scaling back its fleet as it strives to return to profitability.
"It's important that they sort themselves out because Air Berlin's a very good partner for us," he added.
Clark also said the carrier was no further with trying to get slots at Berlin's new airport, due to be opened next summer.
There have been reports that flag carrier Lufthansa has asked the government not to award slots to Emirates.
Lufthansa has been openly critical of Emirates, accusing it and other Gulf carriers of having an unfair advantage and distorting the market because they are backed by rich states.
"If we were flying in empty and charging silly prices and wrecking markets etc, then the case of our friends in the various airlines that seem to be opposed to us would rest, but it doesn't," Clark said.

By Victoria Bryan
http://www.reuters.com