To meet the robust demand in the Philippines, Indonesia and India, budget carrier AirAsia is ordering 14 more Airbus 320CEO as announced in the Paris Air Show last Thursday (22 June).
The deal is valued at around $1.4 billion at current list prices, although airlines usually get discounts from manufacturers. The 14 additional A320ceos will bring the total number of aircraft from the A320 family ordered by AirAsia to 592. AirAsia continues to be the largest airline customer for the Airbus single aisle product line.
Philippines AirAsia chief executive officer Dexter M. Comendador said in an interview that the carrier is looking to end 2017 with 19 planes, as it plans to boost capacity and expand routes. At present, Philippines AirAsia has 16 planes.
Philippines AirAsia filed an application with Civil Aeronautics Board (CAB) last December 2016 for flights to New Delhi (India) via Bangkok (Thailand). AirAsia PH seeks an allocation of 7/weekly flights in accordance with the existing air services agreement between the Philippines and India. CAB set a hearing on 10 January 2017.
Philippine Airlines (PAL) plans to fly non-stop from Manila to Brisbane by 2018 utilizing the A321neo long range.
Currently, PAL flies Manila-Darwin-Brisbane using the A320.
Philippines AirAsia may delay its flights to Japan from MNL due to limited slots at the Ninoy Aquino International Airport. In lieu of Japan, Philippines AirAsia if offering an alternative – TPE, Taiwan. It may be as fun as the “land of the rising sun.”
Philippines needs 45 flights a day to hit 1M Chinese tourists goal. The 45 flights needed are set on the premise that the minimum aircraft that to be used is A320, all seats should be taken, and all passengers are Chinese.
Caticlan Airport passenger terminal is set to open soon. It will have 12 airbridges to accommodate bigger jets and more passengers. The runway was also extended from 950 meters to 1700 meters enabling it to accommodate A320. For now San Miguel Corporation, owner of Caticlan Airport, said that the construction of the interim terminal will be done by the end of the year.
Cebu Pacific is seeking additional seat entitlements to China and Bangkok according to Civil Aeronautics Board.
The airline filed for additional 1,792 seat entitlements from Manila to Shanghai and vice versa under Protocol 1 of Asean-China Air Transport Agreement.
Philippine Airlines is also seeking additional 1,100 weekly seats to Korea in accordance to the existing confidential memorandum of agreement entered into between the governments of the Philippines and Korea in November 2015.
PAL flies 11 times a week each to Busan and Seoul in Korea currently.
Philippines AirAsia is asking for 1,260 additional seat allocation weekly to Korea.
Civil Aeronautics Board of the Philippines announced that international passenger traffic for the 1st quarter of 2016 reached 5.61 million in January to March, up from 5.34 million passengers in the same period last year. International carriers account for 2.65 million passengers while Philippine carriers flew 2.95 million international passengers.
Despite this modest growth, passenger traffic is still hampered by slot limitation at Ninoy Aquino International Airport, the country’s main gateway.
International Traffic (1st quarter of 2016)
Philippine Airlines – 1.55 million passengers (up from 1.46 million)
Cebu Pacific Air – 1.12 million passengers (from 837,942)
Philippines AirAsia – 222,330
PAL Express – 60,992
Domestic Traffic (1st quarter of 2016)
Cebu Pacific Air – 3.03 million passengers
PAL Express – 1.15 million passengers
Philippines AirAsia – 657,102 passengers
Philippine Airlines – 563,070 passengers
CebGo – 377,096 passengers
AirSwift – 33,515 passengers
Magnum Air – 30,191 passengers
CAB earlier reported a 12-percent increase in domestic passengers to 5.84 million in the first quarter from 5.23 million a year ago.
PHILIPPINES AirAsia Inc. announced that Captain Dexter Comendador has been named interim chief executive officer effective July 30.
He replaces Joy Cañeba, who resigned after three years in the company.
Captain Comendador has over 34 years of experience in the aviation industry as officer of Philippine Air Force and commercial pilot for various airlines. He joined Philippines AirAsia in 2011 as director of flight operations and was promoted to chief operating officer in 2015.
Philippines AirAsia chair Maan Hontiveros said, “The board would like to thank Joy for her significant contribution to AirAsia. It was under her dynamic leadership that we successfully integrated and merged two airline companies in the Philippines, leading to the launching of Philippines AirAsia. We understand and fully support her decision to leave and wish her all the best in her legal career.”
Hontiveros added, “We are pleased that Captain Dexter has agreed to step into the interim CEO role and we are excited about the important change and strategic direction that we are committed to bring for our guests and travelers here and abroad. We remain focused on driving solid growth with emphasis on quality and innovation.”
The airline has recently expanded its network in China with the addition of Manila – Shanghai route last June 10. (PR)
Philippines AirAsia announces the resumption of its 3x/weekly flights from MNL (NAIA Terminal 3) to Shanghai (Shanghai Pudong International Airport) starting on June 10.
Flights depart Manila at 11:20 p.m. every Tuesday, Friday and Sunday, arriving in Shanghai at 2:40 a.m. Return flights depart 3:40 a.m. every Monday, Wednesday and Saturday and arriving in Manila at 7:05 a.m.
All-in promo fares for a one-way Manila-Shanghai flight starts at P888, for travel from June 10 to Oct. 29, 2016.
THE COMPOUND annual growth rate (CAGR) for air travel in the Philippines will catch up with the rest of the Association of Southeast Asian Nations (ASEAN) bloc to average 5.8% from 2015 to 2020 — propelled by the aggressiveness of budget carriers and liberalization of skies in the region, Nomura said.
The Philippines handled 65 million passengers in 2015, Nomura said in an April 14 report titled “ASEAN airlines: Supply-demand dynamics not favouring all.” It forecasts an increase to 69 million this year, 74 million in 2017, 78 million in 2018, 82 million in 2019, and 86 million by 2020.
“With a slew of new deliveries entering the market for Cebu Pacific and Philippine Airlines (PAL Group), we see competition intensifying in the domestic market, notably at the Cebu-Mactan airport, which is the Philippines’ second busiest airport, and a sizeable operating base for both Cebu Pacific and PAL Group,” Nomura said.
International yields of foreign airlines entering the market will be affected due to “overcapacity,” but the impact will be much less compared to the effects on the domestic market.
“However, we expect local carriers operating out of the congested Manila airport should be cushioned from the yield downside, as there is no room for added capacity at the said airport,” the Japanese financial services group said.
Philippine AirAsia is also in a “favorable” position as it is isolated from the heated competition at the Cebu-Mactan airport.
CAGR for passenger traffic at stood at 6.8% last year, and Nomura projects another 6.8% this year and 7.4% in 2017. However, CAGR is expected to decline to 5% from 2018 to 2020, translating to a 5.8% average for those five years.
“We expect that ASEAN, as a whole, will continue to see commendable growth in air travel in 2016 onwards,” Nomura said.
It cited “aggressive air fare discounts” due to intensifying competition amid capacity expansion in the Philippines, along with Vietnam, Indonesia, Laos and Thailand.
Nomura also pointed out the liberalized policies for air traffic rights, which removes “monopolistic barriers” such as restrictions on frequencies, route rights, air fare pricing regimes and equity ownership structures. This brought in new players and paved the way for increased competition.
“ASEAN has set a road map for air liberalisation, and the Philippines’ consent to comply with Protocol 5 and 6 implies that unlimited fifth freedom rights on ASEAN capital cities could be foreseeable in the future across all ASEANmembers,” Nomura said.
In an earlier statement, the Department of Transportation and Communications (DoTC) said President Benigno S. C. Aquino III signed on Feb. 3 Protocols 5 and 6 of the ASEAN Multilateral Agreement in Air Services, allowing local airlines to have “unlimited frequencies” to Asean member states. The DoTC and the Civil Aeronautics Board are assisting Philippine air carriers in securing additional flight schedules with each of the Asean’s nine other member states, and the government targets to have new flights operational by August.
Nomura said yesterday that other cross-bilateral agreements between ASEAN and other countries — such as China, India and the European Union — are also being discussed.
“The continued strong economic growth and favourable demographics [outside Singapore] should propel a passenger traffic CAGR of 5.9% over 2015-20F (2020 forecast),” the report read.
“While we expect improved earnings outlooks across the board on the back of low oil prices, we think investors should look beyond the earnings growth trajectory and be selective in their stock picks, as supply and demand dynamics may not be entirely positive across the sector.”