ICAO assesses RP aviation safety plan - Impressed??

The president of the International Civil Aviation Organization (ICAO)
was impressed by the steps being undertaken by the Civil Aviation
Authority of the Philippines (CAAP) in assuring the safety and well
being of airplanes as well as passengers in the country. This was the
assessment of CAAP Director General Alfonso Cusi who hosted the
aviation czar in Manila recently.

ICAO president Roberto Kobeh Gonzales arrived in the country last
Wednesday to meet with civil aviation and transportation officials in
an effort to correct the negative rating slapped by the regulating
body on the Philippines last year.

Transport officials headed by Secretary Jose "Ping" de Jesus met with
the ICAO president last Thursday. He briefied him on the
accomplishments the government has done to correct the deficiencies
found with the country's civil aviation system and regulations.

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Cebu Pacific Airline maintains no. 1 airline status

Cebu Pacific has maintained its status as the country's largest
airline having transported more than 4 million passengers in first
half of 2010.

Data from Philippines' Civil Aeronautics Board showed that the
airlines, owned by Chinese-Filipino tycoon Gokongwei, flew a total of
4,088,493 domestic passengers or a growth of 13 percent year-on- year.
This is also 1.2 million more than that of flag carrier Philippine
Airlines (PAL).

The airline first ousted PAL as Philippines' largest airline last year
when it captured half of the domestic market's share. This year, it
was able to secure 48.75 percent, the aeronautics board said.

"We aim to fly 10 million passengers in 2010, and we are happy to see
that we remain on track," the company said in a statement.

Cebu Pacific operates the youngest aircraft fleet in the Philippines
with 21 Airbus and 8 ATR 72-500. It has flown over 45 million
passengers since its inception in 1996.

Aside from its domestic destinations, the company also flies to
Brunei, Guangzhou, Shanghai, Osaka, Seoul (Incheon), Jakarta,
Singapore, Ho Chi Minh, Taipei, Macau, Hong Kong, Singapore, Bangkok,
Kota Kinabalu and Kuala Lumpur. The airline's Beijing service will be
launched on September 5.

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Cebu airport notes no significant decline in tourist arrivals after hostage tragedy

There has been no significant decline in tourist arrivals nor has
there been any flight cancellations at the Mactan Cebu International
Airport a week after the hostage tragedy transpired at the country's
capital.

Mactan Cebu International Airport Authority (MCIAA) Public Affairs
Manager Ahmed Cuizon said that so far, they have not received any
flight cancellations due to the tragic incident.

Although Cuizon did not rule out the possibility that the tourism
industry in Cebu will be greatly affected by what happened but that
"maybe in the next few weeks, there might be flight cancellations as
the travel ban to the country by China has already been issued."

"We have to understand that travel bookings are done in advance so it
is too early to tell about flight cancellations due to the incident,"
according to Cuizon.

But Department of Tourism (DOT-7) Officer-in-Charge Rowena Montecillo
said that following the hostage crisis that left eight Chinese
tourists dead, chartered flights from Shanghai and Canton have been
cancelled.

Cuizon said the incident serves as a challenge to all especially the
tourism stakeholders on how to initiate actions to overcome the
negative publicity the country is getting due to the handling of the
crisis.

The MCIAA based in Lapulapu City for its part joins the city
government in initiating a promotional package program together with
other tourism sectors like resorts and establishments designed to
attract tourists to come to Cebu, Cuizon said.

Cuizon said it is the initiative of the Lapulapu City Government to
come up with a promotional tourism package after the incident occurred
as the city is home to many luxurious hotel resorts, one of the
sectors that will be greatly affected is tourist arrivals decline.

The MCIAA public affairs manager said he believes that this is just a
temporary setback citing that relations between the Philippines and
China dates back centuries.

"I still believe that the hostage tragedy was an isolated case and
that relations between both nations will be mended," Cuizon stressed.

Cebu Filipino-Chinese Chamber of Commerce President Filomeno Lim on
the other hand, said the severity of the damage caused by the hostage
incident to our tourism industry cannot be quantified.

Lim said the damage is not only economic in nature although it is the
most basic consideration.

"You have to consider that one tourist spends an average of
US$1,000/day and this alone is a much significant loss if we multiply
this to the number of tourists who have decided not to push through
their visit to the country," according to Lim.

Lim however, said that despite the fact that the victims were his
countrymen, he still would do his best to help the government by
promoting the Philippines to his relatives and friends in China.

Cebu has been a consistent favorite tourism destination among
international tourists but after the tragic incident, three hotels
reported booking cancellations from tourists coming in from China,
this is learned.

Montecillo said that in Central Visayas, Cebu and Bohol are the most
visited provinces by foreign tourists.

Chinese tourists ranked fourth as the most frequent travelers to Cebu
with Koreans as number one, Montecillo disclosed.

Bohol however, has Chinese tourists as their top traveler to the
province as Montecillo admitted that this would really have an impact
to Bohol's tourism sector.

Montecillo said despite what happened, they would not cease in their
promotional campaign abroad.

"We have regular sales mission and our marketing teams are assigned in
the promotional campaigns abroad. In fact, we have one schedule to
China," Montecillo said.

The DOT-7 chief said that after the hostage tragedy, they paid a visit
to the Consul General of the People's Republic of China to Cebu ans
apologized and offered their sympathies.

"We also held a mass and offered prayers for the victims of the
hostage tragedy," Montecillo added.

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Zamboanga Airport Bomb Suspects Identified

Three former Sulu officials were identified by police on Friday as the
alleged masterminds in the August 5 blast at the Zamboanga airport.

Former Sulu 1st District Rep. Munir Arbison, former Maimbung Mayor
Najib Maldiza, and former Pangutaran Mayor Ahmad Nanoh were the brains
behind the blast, according to Chief Superintendent Edwin Corvera,
Zamboanga Peninsula regional police director.

The attack killed 2 people, including the suspected bomber, and
injured 22 others.

Corvera said police have submitted additional information to the
Department of Justice, adding the names of the 3 former officials on
the list of suspects in the attack.

The other names added on the list of suspects are Maulana Omar, Jojo
Adam, Musimar Alih, and a certain Munir Hadjirul, police said.

Multiple frustrated murder and multiple attempted murder charges were
earlier filed against 3 suspects -- Allan Saibuddin, Addung
Salahuddin, and a John Doe.

Corvera said 4 witnesses have submitted sworn affidavits implicating
the 3 former Sulu officials and 4 other suspects.

Senior Superintendent Edwin Diocos, Criminal Investigation and
Detection Group (CIDG) regional director, said the witnesses took part
in planning the airport bombing, which targeted Sulu Governor Abdul
Sakur Tan.

The witnesses claimed that Arbison, Maldiza, and Nanoh hatched three
separate plans to kill Tan, Diocos said.

The supposed schemes include a car bomb and the May 13, 2009 Patikul
attack on the governor’s convoy.

The airport blast was “Plan C,” the CIDG official said.

Zamboanga City prosecutor Ricardo Cabaron is evaluating the affidavits
of the witnesses to determine whether to charge the 3 former Sulu
officials and the other suspects named in the case.

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Ten Years of Lufthansa Technik Philippines

Lufthansa Technik Philippines, one of the biggest providers of
aircraft maintenance services in Asia, is set to further expand its
range of products for airline customers with increased capacity. On
the occasion of the tenth anniversary of the foundation of the joint
venture between Lufthansa Technik AG and the MacroAsia Corporation,
Bernhard Krueger-Sprengel, President and CEO of the company, said that
the number of international customers had increased in an encouraging
manner and that the range of technical services would be further
expanded.

"In view of the growth, especially in the Asian market, and our
competitive product, we intend to win new customers not just in the
region. We will be offering new products such as overhaul layovers and
cabin refurbishments designed specifically for low-cost airlines,"
Krueger-Sprengel said. "Lufthansa Technik Philippines is an
outstanding example of a successful joint venture in Asia."

Having started up in 2000 with a workforce of 1,300 at Ninoy Aquino
International Airport, today Lufthansa Technik Philippines has 2,700
employees and is an internationally respected MRO provider
specializing in the Airbus A330/340 and the A320 aircraft families.

August Wilhelm Henningsen, Chairman of the Executive Board of
Lufthansa Technik AG, underlined: "The Manila operation has become the
Lufthansa Technik Group's most important internationally active
maintenance organization for the overhaul of Airbus aircraft. I would
like to formally thank our joint venture partner, MacroAsia
Corporation, for the professional and successful collaboration and
Philippine Airlines, Lufthansa Technik Philippines' most important
customer, for its trust and tremendous loyalty from the outset.
Without the support of these two companies, the success story of
Lufthansa Technik Philippines would not have been possible."

As well as Philippine Airlines and Lufthansa, Lufthansa Technik
Philippines provides aircraft maintenance services for a further 22
airlines. Its aircraft overhaul customers number 24. As
Krueger-Sprengel explained, "Thanks to lean processes and above all to
our highly skilled staff, we have been able to reduce the layover for
an A340 D-check, for example, to 22 days - the best time offered
anywhere in the world - at competitive prices and to the same standard
of quality for which Lufthansa Technik is renowned."

In 2004, four years after commencing operations, Lufthansa Technik
Philippines opened a second overhaul line for long-haul aircraft.
Since 2005 the expanding company has also offered overhaul services
for the A320 family and has started repairing engine components. It
has gained more and more international airline customers and in 2007
opened a second widebody hangar for aircraft overhauls. In 2009 the
company completed its 100th heavy check.

Lufthansa Technik Philippines

Founded in the year 2000 as a joint venture of Lufthansa Technik AG
and Philippine aviation service provider MacroAsia Corporation,
Lufthansa Technik Philippines offers a wide range of aircraft
maintenance, repair and overhaul (MRO) services to customers
worldwide. It has an extensive line and base maintenance approval from
major aviation authorities including the United States' Federal
Aviation Administration (FAA) and Europe's EASA. The company has a
workforce of 2,700 highly skilled mechanics, engineers and support
personnel. Five hangar bays and workshops have been upgraded to the
latest industry standards to support aircraft maintenance and
overhaul, major modifications, cabin reconfigurations, engine
maintenance and painting for Airbus A320, A330/A340, Boeing 747-400
aircraft. LTP also provides manpower support to airline customers,
other MROs and affiliates in the Lufthansa Technik Group.

The Lufthansa Technik Group, with more than 30 subsidiaries and about
26,000 employees worldwide, is one of the leading
manufacturer-independent providers of services for the aviation
industry. In 2009, the Group's overall revenues stood at 4 billion
euros. Lufthansa Technik is licensed internationally as a repair,
production and development enterprise. The Group's portfolio
encompasses the entire spectrum of services in the areas of
maintenance, repair, overhaul, modification and conversion, engines
and components.

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An Interesting Lesson for all Pilots - Business jet mishandled at Kerry

A Gulfstream IV was put at high risk when its flightpath was badly
managed by the crew as they were turning back to Kerry airport with a
minor fault, according to an Irish Air Accident Investigation Unit
report.

The "serious incident" on 13 July 2009 began just after the GIV
(VT-MST) took off from Runway 08 at Kerry, bound for London Luton, UK
when the captain's windshield cracked and the crew requested a return
to Kerry. The AAIU report criticises the pilots for poor crew resource
management leading to a serious loss of situational awareness.

After being cleared to return to Kerry, the crew initiated what they
thought was a descent for landing on Runway 26, but the aircraft was
paralleling the instrument landing system approach path to that runway
some 10km (5.4nm) to the south.

The crew had ignored the Kerry controller's advice for the return and
did not provide its specific intentions nor a requested position
report. Since Kerry does not have radar, the controller was unable to
provide vectors. Intervention in the aircraft's 1,300ft/min descent
with gear and flaps down came when a controller at Shannon radar
called Kerry on the telephone and said the aircraft should be told to
climb immediately.

As Kerry delivered that instruction, the aircraft's enhanced ground
proximity system alerted the pilots. The minimum height above the
ground that the GIV reached was 702ft (215m), still in cloud, says the
AAIU.

Kerry handed the aircraft over to Shannon radar, and Shannon vectored
the crew to intercept the ILS for Runway 26. It finally landed safely
at Kerry, but not without having to carry out a 360° turn before the
ILS approach because of confusion caused when the co-pilot programmed
the approach to Runway 26 at Luton, instead of Kerry, into the flight
management system.

The AAIU found that the No 1 engine had suffered severe damage to its
fan and blades in both compressors from ingestion of an unidentified
metal foreign object, but the crew had not reported this. The engine
subsequently had to be changed.

After landing and disembarking the passenger, the crew had started up
the engines again to test the No 1 because it was vibrating. The AAIU
said this test served no purpose and caused more harm to the engine.

Flightglobal's ACAS database lists the aircraft as owned by Sunrise
Air. It has been leased to Asia Aviation since May 2007.

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ICAO head in RP to assess aviation industry

The president of the International Civil Aviation Organization (ICAO)
arrived yesterday afternoon from Montreal, Canada on the invitation of
the Civil Aviation Authority of the Philippines (CAAP) to assess the
country’s aviation industry.

Roberto Kobe Gonzalez was welcomed at the Ninoy Aquino International
Airport by CAAP chief Alfonso Cusi and ICAO coordinator Peter Weiss.

Cusi said Gonzalez would be in the country until Sunday to inspect the
Manila Control Tower, the Area Control Center radar room and
thereafter, would be given a briefing by top CAAP officials.

Those scheduled to speak in behalf of the CAAP are the heads of the
Airport Development and Management System, Air Navigation Service, Air
Traffic Service and Flight Standard Inspectorate Service.

“This is probably the time that we would ask Gonzalez for a definite
timeline on his assessment of the CAAP in regards to the significant
safety concern (SSC) that they have aired,” Cusi said

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Cebu Pacific airline opens the Macau-Laoag route

Along with the economy recovers and the demand of air travel, Cebu
Pacific will launch the Macau - Laoag route on September 20, 2010.

The departure time is in every Monday, Wednesdays and Fridays at
9:40pm, and the arrival time is in every Tuesday, Thursdays and
Saturdays at 2:05am. Including this new destinations, there are a
total of 13 flights weekly to and from Macao to the Philippines
operated by the Cebu Pacific Airlines for the passengers among Manila,
Clark and Tuguegarao and Laoag.

In order to cope with the air travel demand as well as reduce the
impact of VIVA airline’s bankrupted, Macau International Airport will
actively develop the mainland and international markets, continuing to
work with the Civil Aviation Authority of Macau and airport operators
to strengthen the communication and liaison with airlines, to fully
support them for route development, reduce operating costs, improve
the quality and efficient services.

We believe that with further recovery of the global economy, Macau
International Airport will certainly attract more airlines to Macau in
priority on their route development plan with the perspective of local
airlines foreseeing t

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Rp and its airforce woes - Polish-ing our air force

Polish-ing our air force
by Babe Romualdez August 31, 2010

One of the worst midnight deals signed by the former Department of
National Defense head, Norberto Gonzalez, was the procurement of
Polish helicopters for our Air Force. It seems the Philippine Air
Force will be polished up by buying Polish-made PZL Swidnik Sokol
helicopters the kind that even the Polish government itself won’t buy.
Spy Bits was informed that in the last 30 years, only two countries
Myanmar and the former Czechoslovakia have bought these so called
Sokols (and even then under compelling circumstances). Late last
month, the Polish Ministry of National Defence announced the intention
to buy 26 new choppers for a “unified helicopter platform” for its
navy, army and Special Forces by the end of the year. But guess what
none of these helicopters will be the Sokol, as the platforms chosen
will most likely be the Sikorsky S-70i Black Hawk or S-92. As a matter
of fact, even the Polish Ministry of Health did not think enough of
PZL Swidnik, opting instead to purchase 23 choppers from the French
manufacturer Eurocopter for its emergency medical services fleet.

Last year, Italian aircraft manufacturer Augusta Westland bought out
PZL Swidnik and has since fired more than 500 personnel an indication
that the new owners are not inclined to continue manufacturing Sokols
(competitors of Augusta’s A139 and A159 models) or any other PZL
helicopter for that matter. And when that happens the Philippine Air
Force will be left “holding the bag” since there will be no parts for
replacement, repairs, maintenance and other after-sales support
requirements. What a set up!

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Cebu Pacific to offer Beijing flights

Cebu Pacific (CEB) will start flying to Beijing, China early next
month, the airline firm said today.

CEB said the Manila-Beijing-Manila route, which will be launched on
Sept. 5., is the company's 16th international destination.

CEB's thrice-a-week service will start when the flight departs from
Manila at 7:35 p.m. and arrives in Beijing at 12:05 a.m. The return
flight will depart from Beijing at 01:00 a.m. and will arrive in
Manila at 5:30 a.m.

"We are excited to begin our Beijing operations, as it will signify
better connectivity for our passengers to the Philippines and the
Asia-Pacific region," said Candice Iyog, CEB's vice- president for
marketing and distribution.

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Local RP air travel boom threatened by stringent safety, security measures

FILIPINOS who have only recently discovered the fun in air travel are
facing an increasingly stringent security regime at the country’s
airports. And it may be a matter of time before airport security takes
all the fun out of air travel.

The stringent security measures are a contrast to the robust growth of
the local airline industry.

According to the Civil Aviation Authority of the Philippines, there
were 8.39 million domestic air passengers in the first half of this
year, up 10 percent from the same period a year ago.

The emergence of low-cost carriers like Cebu Pacific Airways accounts
for much of the dizzying growth of commercial aviation in the
Philippines.

Cebu Pacific carried four million passengers in the first half of the
year, up 13 percent over year-ago figures. It is now the biggest local
airline in terms of passenger load, with a market share of 48.75
percent.

Philippine Airlines has seen its passenger traffic fall by 10 percent
to 2.8 million passengers this year.

But the slack has been picked up by sister company Air Philippines
which saw a three-fold hike in passenger load in the first half, from
254,244 last year to 667,686 this year.

The brisk growth, however, is slowly being tempered by the constant
increases in security measures at the local airports.

The long queues at the airport terminals—a result of baggage
processing via x-ray machines, plus body-frisking, inspections of
personal effects, and more body-frisking—say it all.

Not even the President, top government officials, and VIPs are
exempted from the rigorous exercise everytime they travel by air.

Terrorism has cast a very long shadow on the travel industry, and both
government agencies and private companies have invested millions of
pesos in equipment and man-hours to help address the security
concerns.

Ironically, these measures also dampen travelers’ appetite for trips.

Body scanners are the latest tools used by airports worldwide to
thwart terrorism.

There are currently four types of scanning machines used at airports
worldwide. These are the Terahertz, the Backscatter, the
Milimeterwave, and the Arcscan x-ray technologies.

All of these full body scanners reflect items on the surface of the
body that detect different types of plastic explosives through
different type of clothing.

But these scanners also make even the most seasoned travelers queasy.
Body scanners, after all, essentially paint a nude picture of the
traveler.

Body scanners even allow screeners access to otherwise confidential
medical information.

The Backscatter and Arcscan have more features that address the
privacy issue as this technology provides automatic coverage of a
person’s private parts. And this part of the body scan cannot be
deactivated by the operator.

Body scanners are strong enough to see objects inside the body,
including drugs and other paraphernalia that so-called “drug mules”
swallow, as well as hidden objects like plastic weapons in “skin
caves” and “vaginal and anal imported items.”

Airport security agencies continue to assess current procedures and
technology in an effort to put some fun into air travel again.

But 20-second passenger processing, minus the clothes stripping and
removal of shoes and belts, is still a thing of the future.

Until that time, air travelers will have to bear the inconvenience—and
the occasional embarrassment—in the name of safety and security.

http://www.manilastandardtoday.com/insideNation.htm?f=2010/august/30/nation5.isx&d=2010/august/30

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Land at your own risk in the Philippines

The botched hostage rescue, now a textbook case worldwide on how not
to resolve a hostage situation, has brought shame to the nation and
prompted cancellations of tours to the Philippines from Hong Kong and
the Chinese mainland during one of their peak travel seasons. But even
before one deranged ex-cop and the government’s incompetent response
spooked foreign visitors, the Philippines was already struggling in
its efforts to attract more travelers.

One immediate reason was the breakdown of the VOR or very high
frequency omni-range station at the Ninoy Aquino International
Airport, which prompted authorities to turn back or divert flights
during nighttime or periods of poor visibility due to smog. Airport
authorities tried to downplay the problem by saying pilots should just
use their eyes for landing, but of course many refused to take that
risk.

The VOR as well as the instrument landing system and distance
measuring equipment at the NAIA were damaged at the height of storm
“Ondoy” last year. The ILS and DME were repaired and became
operational only last Thursday afternoon, while the VOR is working
only because the NAIA borrowed a transmitter from the airport in
Subic.

How much does it cost to rehabilitate the VOR? A transmitter costs P14
million, authorities said, while VOR replacement parts costing P3
million also need to be purchased. The total amount is smaller than
the individual pork barrel allocation of congressmen, or the pay and
bonuses received last year by each of the top executives in the major
government-owned or controlled corporations. The Department of
Transportation and Communications was prepared in the previous
administration to spend $329 million on a government broadband network
project, but not a fraction of that amount to upgrade navigation
facilities in the country’s premier airport.

The uncertainty of being able to land in the airport of one’s choice
in this country is on top of the many problems that have long
bedeviled visitors in the Philippines. Traffic, pollution, security
risks, poor tourism infrastructure, unsafe mass transportation
facilities – all these problems have contributed to making the country
lag behind its regional neighbors in terms of tourism arrivals. The
inability to replace airport navigation equipment is another
disincentive to travelers that can and should be quickly remedied.

EDITORIAL- Land at your own risk -
http://www.philstar.com/Article.aspx?articleId=606868&publicationSubCategoryI...

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Botched Hostage rescue causes HK to cancel flights to Laoag and Manila

Direct flights from Hong Kong to this Laog have been canceled
"indefinitely" beginning Thursday, a fallout from the bloody Aug. 23
hostage-taking at Luneta Park in Manila that left eight Hong Kong
tourists dead.

Ronal Estabillo, manager of Laoag International Airport, said he
received a letter this week from executives of Hong Kong Express
Flights notifying the airport of the cancellation of the airline's
direct flights to Laoag.

The Hong Kong airline flies in tourists twice a week. About 1,200 Hong
Kong tourists visit the city monthly for rest and recreation, said
Milagros Gonzales, provincial tourism officer.

Most of the tourists visit Fort Ilocandia to play in the casino there,
the tourism office said.

Estabillo said the airline's letter was silent on the reason for the
cancellation. But he said he was aware of a travel ban imposed by
Chinese authorities on Tuesday in the aftermath of the bungled rescue
attempt of the Chinese hostages.

Estabillo said the last Hong Kong flight to the city that was
scheduled to arrive at 5 p.m. on Thursday was expected to fly home the
remaining Chinese tourists who arrived here on Sunday.

Flights from Hong Kong take only 45 minutes to reach Laoag
International Airport.

Gonzales said she was also told that a scheduled flight from
Kaoshiung, Taiwan, to this city also faced cancellation. Around 200
Taiwanese tourists visit the city each month to play in the casino or
play golf.

Authorities here are unaware if Taiwan had issued any travel ban or
travel advisory as a result of the deadly Manila bus hijacking.

"We hope to bring back these tourists in the coming days when the
anguish over the tragedy has died down. ? [But] we were informed that
all bookings in two major hotels in the city have been canceled since
Tuesday," Gonzales said.

More cancellations

In Manila, the country's tourism sector has started to feel the
effects of Monday's Luneta hostage-taking, with local airlines and
hotels reporting a wave of flight and booking cancellations just days
after the tragedy.

The country's flag carrier Philippine Airlines (PAL) said 558 people
from Hong Kong and other parts of China who were booked to travel to
the Philippines in the next 30 days have canceled their flights to
Manila and other tourist destinations in the country.

At the same time, Gokongwei-led Cebu Pacific reported rebooking and
cancellation requests from about 2 percent of the company's passengers
to Hong Kong.

PAL president Jaime J. Bautista said the company had been swamped by
calls from potential passengers cancelling flights to the country amid
security concerns following Monday's hostage crisis.

"About 90 groups of tourists have canceled flights to the Philippines
from Hong Kong and other parts of China," Bautista said. The groups
are the equivalent of about 558 tourists. Many of the PAL passengers
were headed to Kalibo, the gateway to the island paradise of Boracay.

"Hong Kong is a very important route for PAL," Bautista said. But he
said so far, only flights from China have been affected by the
cancellations.

"PAL is beginning to feel the initial impact of a Hong Kong government
advisory warning its residents to refrain from all travel to the
Philippines," he said.

Worst-case scenario

The worst-case scenario for the company, he said, will be the
reduction of flights to Hong Kong.

About 6 percent of PAL's revenues come from its operations to Hong
Kong. PAL flies to Hong Kong five times a day. The airline also flies
to Macau, Shanghai, Xiamen and Beijing.

For its part, budget carrier Cebu Pacific said several of its
passengers from Hong Kong had also asked to have their flights either
rebooked or canceled.

"As of Aug. 26, we have received rebooking and cancel requests from
less than 2 percent of the total number of passengers for the
airline's Hong Kong routes," the company said in a statement.

Meanwhile, the Philippine Travel Agencies Association (PTAA) said
eight hotels and seven resorts had reported requests for cancellations
by tourists from Hong Kong and other parts of China.

This amounts to about 300 rooms in popular tourist destinations like
Bohol, Palawan, Boracay, Cebu and Manila, the PTAA said.

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Philippine Air Force to Receive New Aircraft

The Philippine Air Force (PAF) will receive 18 new light aircraft and
eight helicopters as part of the armed forces of the Philippines
modernisation programme.

PAF 1st Air Division commander Major General Artemio Orozco said four
of the 18 aircraft and eight helicopters would be delivered before the
end of 2010, and the rest in 2011.

The PAF will use the multipurpose helicopters during disaster and
military operations, and the light training aircraft to replace old
training aircraft.

The air force is also constructing a taxiway and ramp to enable smooth
manoeuvrings of these aircraft.

via: http://logisticsweek.com/air/2010/08/philippine-air-force-to-receive-new-airc...

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Cebu Pacific revives IPO plan, eyes bigger proceeds

Cebu Air Inc. is reviving its bid to conduct an initial public
offering (IPO) and this time, is projecting bigger proceeds at P32.19
billion, 26% more than its original target of just about P25.7
billion.

In a filing with the Securities and Exchange Commission (SEC), Cebu
Air which operates budget airline Cebu Pacific, said it will list
214.632 million primary and secondary shares at an offer price of up
to P150 per share, much higher than the initial target of P95 a piece.

Cebu Air has tapped Citigroup Global Markets Limited, Deutsche Bank AG
(Hong Kong Branch) and J.P.
Morgan Securities Ltd. as global coordinators and international lead
managers, while ATR-Kim Eng Capital Partners Inc. was hired as
domestic lead underwriter.

In its revised IPO proposal, Cebu Air will sell 186.637 million
primary and secondary shares that will
generate as much as P27.99 billion in proceeds, while another 27.995
million shares worth P4.19 billion
is being set aside to cover overallotments.

Cebu Air is pursuing the IPO amid the labor problems besetting rival
Philippine Airlines.

Cebu Air's IPO was originally scheduled for April but was put at bay
due to uncertain market conditions as well as the Philippine national
elections.

At that time Cebu Air's application, already approved by the SEC and
the Philippine Stock Exchange, involved the listing of up to 125.25
million primary shares and up to 110.31 million secondary shares at a
target price at P95 per share. Another 35.3 million common shares were
also set aside to cover
overallotments.

In the original filing, Cebu Air said it will use Proceeds from the
public offering for pre-delivery aircraft payments.

Last May, Cebu Air increased its Airbus A320 orders by 7, doubling its
seat capacity in 5 years with a total of 51 aircraft by 2014.

The 22 total Airbus A320 orders, including the additional 7 will
require an investment of some $1.4 billion.

These new aircraft will be enable the airline to increase flight
frequencies in existing routes as well as to expand to new domestic
and international routes, including northern part of China, Korea
and Japan.

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PAL faces tough years, many hurdles, says Bautista

The troubles of flag carrier Philippine Airlines (PAL) are far from over, with more dark clouds forecast to cause turbulence in the next few years.

Monday’s tragic hostage taking highlights the country’s problem with peace and order, one of the many problems the company has had to deal with in its seven-decade history.

PAL has lost over $300 million in the last two years because of a combination of low demand, restrictions to its expansion to lucrative routes in the United States, and a bad hedging decision that led to the airline paying a lot of money for oil that got cheap.

The company’s biggest challenges now are the low grades several international aviation bodies — the US Federal Aviation Administration (FAA) and the International Civil Aviation Organization (ICAO) — have given the Philippines.

“The Philippines is in an aviation crisis," PAL president Jaime Bautista said. “We have two basic but very serious problems that involve our aviation authorities."

In 2008, the FAA downgraded the Philippines to category 2 status, mostly because of deficiencies in the now-defunct Air Transportation Office (ATO).

“What this means is that we could not expand our operations in the US," he said, noting that this derailed the company’s earlier plans to start flights to San Diego or even some in the east coast - New York or Chicago.

The downgrade also meant that PAL would not be allowed to use its two brand new and more efficient Boeing 777 aircraft for flights to the US.

The acquisition of the new aircraft, ordered during the airline industry’s boom period before the 2008 fuel crisis, were part of PAL’s route expansion program.

Failure to pass audit

Another blow to PAL’s plans was the Civil Aviation Authority of the Philippines’ (CAAP) failure to pass a recent audit by ICAO that raised significant safety concerns over the country’s air travel industry.

CAAP was formed to replace ATO, precisely to get the category 2 status by the FAA on the Philippines lifted.

So far, it has failed to introduce significant reforms.

“One of the reasons they failed is because they lacked surveillance programs for airlines’ operations. The other is problems with the registration and issuance of airline operators’ certificate," Bautista said.

The ICAO grade later led to the European Union putting Philippine carriers in a blacklist of airlines banned from flying to the continent.

Bautista noted that PAL was able to pass separate safety audits by ICAO and the International Air Transportation Association. However, the country’s poor grade dragged PAL down.

“We are a safe airline. We were rated at par with European airlines’ Lufthansa and KLM," he said. “They acknowledged PAL is safe but they still saw serious deficiencies in CAAP as a regulator," he said.

Bautista said it was this problem with regulatory authorities that has kept PAL from expanding its operations to offset the drop in demand due to crisis conditions in 2009.

Quality of Philippine airports

Massive operating losses of over $300 million in fiscal years 2007-2008 and 2008-2009 dragged PAL’s equity position to around $1 million by early this year.

Exacerbating these problems was the quality of Philippines airports. Two months ago, radar and navigation equipment at Ninoy Aquino International Airport broke down, forcing several domestic and international flights to divert to nearby airports in Clark and Cebu. This proved to be another stain on the reputation of the country’s civil aviation and the Philippines as a tourist destination.

As part of its “survival plan," Bautista said PAL had implemented several measures to improve cost efficiencies and increase capacity.

The centerpiece of this plan is the outsourcing of 2,600 employees engaged in non-core services to turn PAL into a lean, mean organization.

PAL wanted to outsource jobs in its airport services, cargo handling and in-flight catering so that the airline could focus on its core business. The company expected to save $20 million in lower personnel fees and capital investments from the planned outsourcing.

But the plan was blocked by its labor union representing employees to be affected by it. The Labor and Employment Department ruled that the planned spin-off was legal, but the decision remained on appeal.

Making matters worse, the rest of PAL’s workers have also decided to act up.

Poaching by other airlines

Last month’s high-profile resignation of 27 pilots, who reportedly left for higher-paying jobs abroad, forced PAL to cancel several flights, affecting over 5,000 passengers. PAL said it was a simple issue of poaching by other airlines.

But the pilots contented the resignations were prompted by PAL’s plan to move its airmen to sister company Air Philippines where salaries are lower.

At the same time, the company’s flight attendants have also threatened to go on strike if PAL does not change a policy that requires cabin crew to retire by the age of 40.

Despite its many problems, Bautista said that everything is being done to ensure that the flag carrier would remain a constant figure in the country’s skies.

“We have to save this airline and continue the mission to provide safe and reliable services to the riding public," he said.

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Cebu Pacific, SEAir unfurl fleet expansion

PHILIPPINE budget airlines are upbeat about the industry as they plan to acquire more aircraft.

Candice Iyog, Cebu Pacific vice president for marketing and distribution told The Manila Times that her company plans to double its business over the next five years with firm order for 22 more brand-new aircraft, the first four of which would be delivered from October 2010 to January 2011. Iyog said the other 18 aircraft are scheduled for delivery until 2014.

“Because of this, we will grow the domestic travel market at roughly 15 percent over the next five years, and we expect even stronger growth (up to
25 percent) in the short haul international market. This kind of growth is expected to continue in the coming years,” Iyog said.

In 2008 and 2009, Cebu Pacific’s business grew by 31.1 percent and 18.4 percent, respectively.

In the first six months of the year, the Gokongwei-led airline’s net income amounted to P3.09 million, up by 55.6 percent from the P1.99 billion in the same period last year.

Cebu Pacific’s revenues reached P14.91 billion, a 30.9 percent increase over last year’s P11.39 billion brought about by an increase in number of passengers mainly as a result of additional flights in 2010.

Another budget carrier, Southeast Asian Airlines (SEAIR) is also set to acquire two Airbus A320 to expand its capacity, allowing it to fly to regional destinations.

Carmelo Arcilla, executive director of Civil Aeronautics Board said the board approved the Seair’s lease of two Airbus A320 to Tiger Airways.

“In 2008 we already approved the lease of two Airbus from Tiger Airways but because of the global slump the program was shelved. They’re reviving it now because the market is growing and many of our airlines are looking at expanding,” Arcilla said.

Avelino Zapanta, SEAIR president and chief executive had said that the new aircraft will be used to fly the Singapore and Macau routes from Clark.
At present, the airline has 11 aircraft, of which four are Dornier 328s and seven Let 410 UVP-Es.

SEAIR flies 18 routes including tourist destinations such as Caticlan (Boracay) and Cebu in the Visayas; Clark in Northern Luzon; Busuanga, Cuyo, El Nido,
Puerto Princesa and Rodriguez in Palawan Province; and Camiguin, Cotobato, Zamboanga, Jolo, Tawi-Tawi in Mindanao.

Air Philippine Express earlier announced its direct flights from Manila to Singapore on October 27.

“We are expanding our network regionally to offer our passengers more options at our affordable prices. That, with our customer-centric focus, will be the theme for our expansion into Asia,” Bettina de Vera, Airphil Express corporate communications manager said.

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Competition on Flights from Korea to the Philippines Heats Up

Competition for air routes connecting Korea and the Philippines is heating up. Currently only the two flag carriers Korean Air and Asiana Airlines are flying from Incheon and Busan to four cities in the Philippines -- Manila, Clark, Cebu and Kalibo. But by January next year, domestic and foreign budget airlines will open new routes or increase the number of flights.

Jeju Air plans to fly Incheon-Manila five times a week from October, and Jin Air is working on an Incheon-Clark route five times a week starting in October or November. Air Busan is also reportedly mulling a service to the islands from Busan, to be launched in December.

In the Philippines, meanwhile, Zest Air began operating a Kalibo-Incheon service in December, which flies four times a week, and an Cebu-Incheon route in July, also four times a week. Cebu Pacific is considering increasing the Manila-Incheon route from seven times a week to 14 in January.

The reason for the sudden increase is permission from the Ministry of Land, Transport and Maritime Affairs last month for Filipino budget airlines to fly Korea's aerial routes.

Korea and the Philippines have not signed an Open Skies Agreement that allows the carriers of both sides to fly unlimited routes unlimited times in each others' aerial domains. Instead, they negotiate once a year to distribute licenses.

The Philippines is one of the favorite destinations for Korean tourists and therefore a treasure trove for airliners. A Jin Air staffer said, "For a budget airliner, traditional tourist destinations are more profitable than business destinations. Because the Philippines is just four hours away from Korea, many budget airlines had been working very hard to get the license to fly." 

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Competition on Flights from Korea to the Philippines Heats Up

Competition for air routes connecting Korea and the Philippines is heating up. Currently only the two flag carriers Korean Air and Asiana Airlines are flying from Incheon and Busan to four cities in the Philippines -- Manila, Clark, Cebu and Kalibo. But by January next year, domestic and foreign budget airlines will open new routes or increase the number of flights.

Jeju Air plans to fly Incheon-Manila five times a week from October, and Jin Air is working on an Incheon-Clark route five times a week starting in October or November. Air Busan is also reportedly mulling a service to the islands from Busan, to be launched in December.

In the Philippines, meanwhile, Zest Air began operating a Kalibo-Incheon service in December, which flies four times a week, and an Cebu-Incheon route in July, also four times a week. Cebu Pacific is considering increasing the Manila-Incheon route from seven times a week to 14 in January.

The reason for the sudden increase is permission from the Ministry of Land, Transport and Maritime Affairs last month for Filipino budget airlines to fly Korea's aerial routes.

Korea and the Philippines have not signed an Open Skies Agreement that allows the carriers of both sides to fly unlimited routes unlimited times in each others' aerial domains. Instead, they negotiate once a year to distribute licenses.

The Philippines is one of the favorite destinations for Korean tourists and therefore a treasure trove for airliners. A Jin Air staffer said, "For a budget airliner, traditional tourist destinations are more profitable than business destinations. Because the Philippines is just four hours away from Korea, many budget airlines had been working very hard to get the license to fly." 

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Pacific Flyer CS-TEI Spotted in Lisbon on 16th AUgust 2010

The Aircraft that was recently used to operate the Pacific Flyer route from Palau to Clark was rumored to have gone to KL to operate charters Clark-KL three times weekly was spotted in Lisbon on August 16th 2010

The operators of the airline have allegedly left massive debt in the Philippines!

CS-TEI Taxiing at Lisbon Airport on Aug 16th 2010

The question is, was it relocated to prevent any legal action by those owed money in the Philippines by Pacific Flyer???

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