Sangley International Airport

[Arianespace]

And yes "Sangley" was indeed discussed in yesterday's PAL board meeting but missed the headlines. Told you my sources from the inside is at all time low.

[Arianespace]

And for everyone's information, Macro Asia has just bought bid papers to be Cavite government's partner in developing Sangley. Its not the magic airport wanted by Remulla. He does not have the power to dictate one. Its how DOTR perceives Sangley to be developed in the near term consistent with Cavite Government finances.

To make everyone up to speed, PAL and Macro Asia has the same parent. Lucio Tan.

[Solblanc]

Speaking of the bid documents, I could not see the invitation to bid online on either the website of the Province of Cavite, Dotr, PPP website, and PhilGEPS is also not user-friendly. Shouldn't the public docs be available?

But, a simple 30ppa terminal and an additional runway should be enough to accommodate all of PAL's ops plus some foreign carriers. With Bulacan and Clark up north, NAIA can be closed and the traffic distributed.

I guess we'll find out what happens in a decade. It's not like these projects get finished in the near term.

[Arianespace]

It is not the same bid as Bulacan airport. The bid is all about looking for a partner with financial muscle to construct a bigger airport with them as the operator. So technically, Cavite government operates it through the deep pockets of its partner investor. Meaning, its the investor who pays the concession fee to the national government. So whoever gives most return to Cavite Province wins. And like what I said DOTr will give it to them if they are not too ambitious.

[Solblanc]

The news about Sangley is quite interesting.

Given that MacroAsia is poised to win it, no matter what DOTR says, Sangley can now be a contender for a NAIA replacement. After all, why would LT send PAL to a competitor airport?

25m ppa capacity is in theory enough to handle all of PAL's operations plus the operations of FSCs that codeshare with them, like ANA. And a single runway can handle all that. KIX was a single-runway airport for the first part of its life. If they play their cards right, Sangley can turn into a FSC airport. Connect a bridge there from Entertainment City, then it becomes just as accessible as NAIA.

Partnering with China also has some benefits. They know how to reclaim land fast. After all, they've been doing it with remarkable speed in the West Philippine Sea. Whole islands and facilities managed to prop themselves up within just a few years.

Of course, back to the ground, given that this is the Philippines, nobody can predict the future. The LGU doesn't exactly have expertise in this area. Plus, we have to see how the other big China-LGU project is doing: the Makati subway. We have yet to see how fast Makati can pull it off. And we've got elections in 2022. So anything can happen.

[Arianespace]

Not at all a replacement. A support infrastructure most definitely. Right now PAL has more or less 15 million passengers at NAIA. Moving them out of Sangley is not an option. Growing something in Sangley is anything else. I'm kinda reminded of how British Airways uses Gatwick and City airports while staying in Heathrow. PAL is moving in that direction. Using NAIA, Clark and Sangley is just the way to go.

Speaking about Chinese partners, all of the bidders have one. So I don't know how this illogical paranoia comes from. Whoever wins has Chinese partners on it. Why? They have the money!

[Solblanc]

British Airways at least has the benefit of half-decent facilities in Heathrow T5 where at least the majority of their heathrow operations are. PAL won’t fit into any single terminal in NAIA (and neither can 5J). If PAL has any ambitions whatsoever, they need a better airport. They need all their operations in one roof with room to grow. They can’t have their transpacific flights arriving and departing from different terminals. The proposed NAIA upgrade can only do so much.

As for the sinophobia, it’s probably being peddled by the RSA camp. Can’t have too many competitors.

[Arianespace]

If Macro Asia play its card well, it might just be successful relocating PAL domestic operations there except Cebu, Davao and maybe Gensan, and thereafter convince DOTr to have them construct immediately the base for the new runway that would enable the airport to accommodate wide body aircraft while still retaining the capacity cap. I'm sure LT Group are focusing hard in that direction.

Why would that be?  

It will provide and free them more slots better suited for international destinations particularly medium to long haul network that other airlines would only salivate about. The task would seem improbable now but the possibilities are endless for them to keep international operations running and growing at NAIA. And when its full they already have Sangley as back-up capacity plan.

And they might just do that. Watch this forum.

[Solblanc]

I wonder how they’ll connect passengers between NAIA and Sangley, though. British Airways allows people to buy tickets that require self-connection between LHR and LGW. It might be a bit more challenging to do that between MNL and SGY.

The value-added of MNL and PAL, though, is that it can connect more domestic destinations than any of its competitor hubs in Southeast Asia. Sure, SIN and HKG can connect you to CEB and DVO. But only Manila has consistent connections to places like DPL or CGY or LAO.

I’m also a bit saddened that the turboprop network in Clark has been disconnected from the international network in MNL. Places like USU have a more challenging connection now. It should in theory get easier, though, if those flights are relocated to Sangley.

Speaking of which, SGY has been ready to receive turboprops for a while now. When is PAL relocating them to Sangley?

[Arianespace]

I know this is going to pop out. PAL is already mopping Sangley NAIA route this month without much funfare with a cavite based bus operator. So you would know that they are doing something with the turboprops. They have connected T1-T3 successfully. There is no reason why they can't do MNL SLY connection if the intent was heading in that direction. Like I said, that would start soon.

[Arianespace]

NAIA Airside bound. MNL SGL direct. PAL exclusive. Not bad ey!

[Solblanc]

Not bad indeed. MCT would be around 3 hours, but that’s still in the range of normal acceptable layovers.

[Arianespace]

PAL plans to have 4 DH4s operating at this airport. Which means relocating most of the Q400s from Clark. Which means Basco, Siargao, Catarman, Busuanga and other turboprop destinations could be making this airport home soon. They are also proposing to add 10 new destinations.

And if you wonder how MNL and SLY RNAV approach works, see below. They are almost done. That is 5km of separation more than the 2k minimum. It will change again when NMIA goes online 5 years from now.

[romantic_guy08]

Is the plan to deploy the Mabuhay Express between Moa and Sangley still on the table?

[Arianespace]

It is still there.

[Arianespace]

Remulla just confirmed what I said in December like I said they would.

Remulla told the Inquirer that PAL planned to move some flights out of Manila’s Ninoy Aquino International Airport (Naia) and transfer them to Sangley Point International Airport (SPIA) once the first phase was completed in four years.

Read more: https://business.inquirer.net/290198/cavite-govt-upbeat-on-10-b-sangley-airport-project#ixzz6DVPMDjbj

[Arianespace]

PAL just got their airport approved.

[Arianespace]

Consortium to sign contract for Sangley airport in Sept

By Arjay L. Balinbin,
Senior Reporter

A CONSORTIUM composed of Philippine, European and South Korean companies is set to be awarded the contract to develop the Sangley Point International Airport (SPIA) in September, according to the Cavite provincial government.

Cavite Governor Juanito Victor “Jonvic” C. Remulla, Jr. confirmed to BusinessWorld on Monday that no groups participated in the “competitive challenge” or Swiss challenge process for the SPIA project.

The SPIA Development Consortium had submitted an unsolicited proposal to develop the Sangley airport.

It is composed of the Virata-led Cavitex Holdings; Yuchengo-led House of Investments, Inc.; MacroAsia Corp., an aviation support services provider controlled by the family of billionaire Lucio C. Tan; Samsung C&T Corp., a South Korean construction and engineering company; Munich Airport International, a wholly owned subsidiary of Flughafen München GmbH; and Arup, a UK-based design company.

Cavite’s Public-Private Partnership (PPP) Selection Committee Chairman Renato A. Abutan informed Cavitex Holdings in an Aug. 18 letter that the province intends to award the contract to the SPIA Development Consortium on Sept. 14. The date is still tentatively scheduled.

Mr. Remulla sent a copy of the letter to BusinessWorld on Monday.

All unsolicited proposals are required to undergo a Swiss challenge, wherein other groups may submit counterbids.

As demand for air travel is expected to increase in the next 30 to 40 years, the province of Cavite has been pushing for the development of the SPIA as an alternative to the Ninoy Aquino International Airport in Pasay City, the Philippines’ primary gateway.

MacroAsia President and Chief Operating Officer Eduardo Luis T. Luy told reporters on Friday that there were no bids submitted during the Swiss challenge, saying this is a “good sign.”

“We (MacroAsia) are mostly going to be on the O&M (operations and maintenance) side, because previously we were supposed to be part of this project in a different way. Now that goal has kind of shifted, we will be participating more on the operations side of things,” he said on the sidelines of the formal opening of Lufthansa Technik Philippines, Inc.’s new hangar in Pasay City.

To recall, MacroAsia and its partner China Communications Construction Co. Ltd. had negotiated with Cavite for the project in 2020, but the province canceled its notice of selection and award in January 2021 due to the “various deficiencies in the submission of requirements to conclude the joint-venture agreement.”

Cavite City’s Sangley Point, located along a peninsula that juts out to Manila Bay, is currently operated by the National Government as a supplemental runway to NAIA. The airstrip was first built in 1951 by the US Navy.

https://www.bworldonline.com/top-stories/2022/08/23/469965/consortium-to-sign-contract-for-sangley-airport-in-sept/

[Solblanc]

So… this is tuloy. I wonder, with SMC’s track record, will they be able to win the airport race?

Initial progress in Bulacan was quite impressive, but I’m told that it has slowed down significantly since then.

Sangley already has a working runway. It’s not going to take a lot to make it operational, and with ferry service and a CAVITEX extension, it’ll be able to attract service with its proximity to Manila and the industrial centers of calabarzon.

SMC has to step up its game and hasten their progress if they don’t want to be shut out.

[Arianespace]

Tuloy to second stage. It doesn't mean its already a go. They have to hurdle the economic part which is a very hard thing against DOF backdrop. Consortium should have a working capital of 30% of contract package, among others.

SMC was required to guarantee performance of airport building in Bulacan against their performance bond. They are on schedule according to contract. We should remember this is a government contracted airport. SMC is just the airport operator.