Airlines in the Philippines

[romantic_guy08]

Arianespace wrote

And now some real news

Cebu Pacific Air is scheduled to launch a four-times-weekly service between Manila and Guam on March 15, 2016. Guam is the airline’s first US destination.

The Guam route will operate every Tuesday, Thursday, Saturday and Sunday, using Airbus A320.

The Manila-Guam service departs at 3:45am and arrive in Guam at 10:15am. The Guam-Manila flight will depart Guam at 12:30pm and arrive in Manila at 2:55pm.

One small leapfrog in the big pond, and one headache for UA.

 
How is the ETOPS program at 5J? I heard that its a bit of a mess... nothing specific mentioned though....

[Solblanc]

Well, PAL has a meeting scheduled with Airbus tomorrow here in Paris ;)

[tigz]

I hope not but could an indication the Boeing 787-9 is out of contention. Unless another Airbus sponsored trip and buttering of the deal!

[Eurest]

Airbus has been very aggressive this year in securing orders, and even up to the second half of last year, have been quite accommodating to long-time customers demands just to secure orders.
Boeing, on the other hand, seem not to be as flexible in their pricing but rather are keen on giving essentially "freeby" B77W/L with delivery dates from the second half of 2017 on wards in exchange for bulk firm orders of widebodies.

Another advantage for Airbus towards smaller airlines without the 100 aircraft economies of scale maintenance advantage, is that Airbus sales and maintenance is a cohesive unit that is able to tailor an aircraft order and concurrent after-sales maintenance program to the specific needs of a smaller carrier without its own MRO.
That's why you see multiple carriers with small fleets of A380s/A345s/A346s (usually 6), because Airbus is able to offer a support strategy that eliminates add'l costs like parts inventory, etc

Boeing is slowly catching up with the introduction of the Goldcare program available on the B787 and recently B737NG and MAX. The reason why you'll see many carriers with small subfleets of B787.
If Boeing were to extend the Goldcare program to the B748i, I have no doubt it will be an attractive option for a carrier like PR looking for a ULH capable bird.

[Arianespace]

Solblanc wrote

Well, PAL has a meeting scheduled with Airbus tomorrow here in Paris ;)

There is no free ride from PAL management of PR1 flights. Even LT cannot ride it. How much more those under him.

[Eurest]

Solblanc wrote

Well, PAL has a meeting scheduled with Airbus tomorrow here in Paris ;)

Curious why it was the Chief of Staff of Airbus CEO that met with Pres. Aquino's entourage and not an Airbus Defense and Space official. I guess it was more than just the CN295 MPA/AEW tender but some other aerospace issue.
I wonder if we'll see some direct gov't to gov't deals to bypass the current bureaucratic red tape.

[seven13]

If I'm not mistaken, PR116/117 operates 4X a week using A340 (the schedule says so). So PR hasn't fully utilised the 14 frequency.

[Arianespace]

Eurest wrote

Are we sure none of the LTG/PR people are riding along PR1 as "economic" delegates?

Economic delegates perhaps. It's not unusual to have CEO's and COOs accompanying the President.

<quote author="Eurest">

Solblanc wrote

Curious why it was the Chief of Staff of Airbus CEO that met with Pres. Aquino's entourage and not an Airbus Defense and Space official. I guess it was more than just the CN295 MPA/AEW tender but some other aerospace issue.
I wonder if we'll see some direct gov't to gov't deals to bypass the current bureaucratic red tape.

I did mentioned about the Airbus investments in the Philippines last year. I did also say that was the tip of the iceberg. And it doesn't do anything about PH airlines. Wonder what it was?

President Aquino forges stronger tie up with Airbus
 
(PARIS, France) President Aquino met on Tuesday the officials of Airbus to discuss enhanced cooperation between the Philippines and the European airplane manufacturer.

Significant components for Airbus A350 are sourced from the Philippines such as actuator, galleys and toilets,... 

The Philippine aviation industry is ramping up with new capacity and the country has now become a high potential source of components for plane manufacturing...

And did you know that some of these companies can be found in Baguio?

seven13 wrote

If I'm not mistaken, PR116/117 operates 4X a week using A340 (the schedule says so). So PR hasn't fully utilised the 14 frequency.

It's like following 5J argument that PR hasn't utilized all the slots at HND.

[tigz]

A350 accessories from Baguio EPZ? This is just hypothetical but what incentive is govt giving PAL in exchange for the preferrence on Airbus which in return granted manufacturing concessions that will inject much needed boost to the Philippines export industry? Ironically, while this summer capital is now engage in the aerospace chain, the airport has stagnated in commercial acitvity.

[Arianespace]

High Yield FDI's mostly. EPZ operators enjoy tax holidays for 4 years in exchange for its investment. Its return to the government is in the form of employment opportunities to our brethren who no longer seeks employment abroad, direct or indirect. Earnings from the salaries of the workers are not tax exempt. So are import materials to mold there end products.

That translate to more revenue that funds the building of airports. When the tax holiday ends, it will provide huge revenue to the government and big foreign exchange earnings which will then result to increase foreign reserves translating to lower lending interest rates, and prompting more business loans for expansion purposes that gives more jobs to our people.

[Eurest]

I'm familiar with MOOG, B/E Aerospace, JAMCO, Famous Secret Machining and Applied Machining Corp having facilities in the PH, with MOOG's factory being the one located in Baguio.

I do doubt however that Airbus would be talking to the Philippine president about the operations of its suppliers, as these companies are not Airbus subsidiaries but are just part of Airbus global supply chain.

What I've been hearing though is that the PH gov't is eyeing a licensing/manufacturing deal similar to the ones the Indonesians have with then EADS in the manufacturing of the older Airbus turboprop IP.
Was it a coincidence that after talking with the French, the PH president talked to the Italians?
Hmmm... French-Italian Airbus subsidiary?


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As for the PH gov't giving PR incentives to chose Airbus, as a WTO member things would need to be more discrete like the ME3.
But Boeing does recognize the fact that if it adopted more of the PH's aerospace industry suppliers it could potentially see more sales here.
The problems is that a lot of the PH suppliers manufacture items like galleys or toilets which for Boeing are purchaser furnished equipment where as they are included in the price for Airbus catalogue variants unless the purchaser opts for a customized version.
MOOG as an American company, has quite a history of supplying Boeing though.

[Arianespace]

Eurest wrote

I do doubt however that Airbus would be talking to the Philippine president about the operations of its suppliers, as these companies are not Airbus subsidiaries but are just part of Airbus global supply chain.

Of course they aren't. That's why I said it was just a tip of the iceberg. But Airbus Training Center Philippines (ATCPI), touted to be the biggest in Asia is, and of course Airbus Helicopters Philippines (AHPI) are all subsidiaries of EADS.

What I've been hearing though is that the PH gov't is eyeing a licensing/manufacturing deal similar to the ones the Indonesians have with then EADS in the manufacturing of the older Airbus turboprop IP.
Was it a coincidence that after talking with the French, the PH president talked to the Italians?
Hmmm... French-Italian Airbus subsidiary?

Nope its not. The latest discussion happens to dwell on Airbus Engineering and Spare Parts Centre for Asia Pacific. See how the subcontractors fit?

By the way, the amount of investment Airbus would pour in deserves a visit by no less than the President.

[Arianespace]

Some unconfirmed reports from Italy just came in.

A Philippine-based carrier is slated to commence 3 times a week service to Italia next year, according to Embassy sources. What airline it is we don't know just yet. So hold your horses please.

There are only two airlines allowed to fly Italy. PR and 5J.

By my reckoning, it could be 5J via DXB based on the new bilaterals. It also makes perfect sense since they are already flying daily and adding 3 more flights to DXB with extension doesn't hurt the pocket that much. One nice thing to watch out next year.

[tigz]

I wonder how cheap given the penchant of Filipinos to be in audience with the Holy See. I just hope the service will not be unholy!

[Eurest]

The plan to develop PH as Asia's parts hub has been reported as far back as early 2014, it is quite disappointing to still be discussing it with just the corporate secretary of Airbus commercial planes.
Most of the media reports are still one sided just on the PH side, none on the French so I hope this is not a one-sided wish unlike the training facility which has been already announced.
Besides, would it not be advisable to lure Boeing as well to be truly Asia's aviation spare parts hub?
Boeing sent out teams to inspect the PH aviation suppliers in 2012 but no expansion of Boeing orders came from it.

As for Eurocopter PH, it's the same MRO facility you see in other places in South East Asia like Eurocopter Malaysia. Now if they moved the SEA HQ from SG to PH then that would be something.

For the AATO facility, China and India have them as well, so I was hoping there would be something truly unique that the PH can be the center of for Asia.

Is the PH gov't merely hoping to replicate what Airbus did in 1992 in China when they invested 80M$ US in building an AATO and a materials and spares support center?
I was definitely hoping for more.



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Amazing SQ video

[Arianespace]

Airbus is putting up an Asia Pacific hub. So we could be seeing similar facilities in India and China, only that its bigger. Close to a billion euro investment deal is definitely more than that. And it warrants attention of no less than the President of the Philippines. After all it was the manufacturer that invited him to talk about it. There could be more than meets the eye. I'm sure CRK would be too happy about it.

Boeing on the other hand has no plans on the table. So there is nothing to discuss there. Although Philippines is part of the B787 supply chain.

[Arianespace]

tigz wrote

I wonder how cheap given the penchant of Filipinos to be in audience with the Holy See. I just hope the service will not be unholy!

If they settle around $500, I would jump in and tour EU on their inaugurals. The best time to travel happens to be inaugurals and close succeeding flights because the fares are low. Imagine you could already bring somebody for the regular price of one.

Having said that, PAL just announced CDG via DXB for next year on A330.

By Ma. Stella F. Arnaldo
BusinessMirror

PIONEERING flag carrier Philippine Airlines (PAL) will be expanding its European network, adding Paris to its routes “by 2016-2017.”

The announcement of the new Manila-Paris route was made by David A. Lim, PAL senior vice president, Commercial Group, during the carrier’s recent party to celebrate the second anniversary of its London route.

Lim told the BusinessMirror that the Paris route will likely be served via the Middle East, using Dubai as a layover, “with an evening departure out of Manila.”

He said other key European destinations that the carrier is considering flying via the Middle East route are Amsterdam and Germany.

For his part, Ryan T. Uy, PAL vice president for sales, added that the Paris route will use the Airbus 330, which can carry 368 passengers. “This is temporary, until we get the A350.” The A350-900, which carries 325 passengers, will likely be used by PAL as a standard aircraft for its long-haul destinations.

O ha, garapalan na yan. The aircraft of choice has just been announced accidentally!

[romantic_guy08]

PAL to fly to the ‘City of Light’

PIONEERING flag carrier Philippine Airlines (PAL) will be expanding its European network, adding Paris to its routes “by 2016-2017.”

The announcement of the new Manila-Paris route was made by David A. Lim, PAL senior vice president, Commercial Group, during the carrier’s recent party to celebrate the second anniversary of its London route.

Lim told the BusinessMirror that the Paris route will likely be served via the Middle East, using Dubai as a layover, “with an evening departure out of Manila.”

He said other key European destinations that the carrier is considering flying via the Middle East route are Amsterdam and Germany.

For his part, Ryan T. Uy, PAL vice president for sales, added that the Paris route will use the Airbus 330, which can carry 368 passengers. “This is temporary, until we get the A350.” The A350-900, which carries 325 passengers, will likely be used by PAL as a standard aircraft for its long-haul destinations.

In flying via Dubai for its Paris route, Uy acknowledged that PAL is basically following the template of the Middle Eastern carriers which offer European routes via their home hubs.

“We will bring the fight to them,” he stressed. Middle Eastern carriers are state-owned and receive subsidies for their operations. As such, they are able to offer cutthroat fares for their routes to the region, and then on to Europe. At present, PAL has code-sharing agreements with Middle Eastern carriers, such that when one books a PAL flight say, to Abu Dhabi, essentially it is an Etihad flight.

Uy says the target market for the Paris route will be overseas Filipinos and leisure travelers. There are about 100,000 Filipinos living and working in France.

[Eurest]

“It would be nice if we could fly to Rome, because there is a large religious tourism market [from Manila], as well as a great number of OFWs. But we don’t have fifth freedom rights with Italy,” PAL had wanted to fly to Rome via the Middle East, as well.

I was hoping the signed ASA this week would finally allow PH carriers full 5th freedom rights in flying to IT like how CA allows it

“We will bring the fight to them,” he stressed. Middle Eastern carriers are state-owned and receive subsidies for their operations. As such, they are able to offer cutthroat fares for their routes to the region, and then on to Europe. At present, PAL has code-sharing agreements with Middle Eastern carriers, such that when one books a PAL flight say, to Abu Dhabi, essentially it is an Etihad flight.

I don't think statements like these would help PR endear themselves to EY in hoping to get into the Equity Alliance.

[majaba]

Do we already know where this Airbus spare part hub will be located ? I suppose it will be at Clark International ?