‘Cost-cutting can’t nix airline quality, safety


Written by Lenie Lectura
June 30, 2009

UNDER pressure to cut costs, Philippine Airlines (PAL) on Monday vowed to look for ways to improve operations and control cost without compromising safety.

In a speech at the Federal Aviation Authority (FAA) Maintenance Safety Seminar, PAL president Jaime Bautista said, “We try to be as innovative as the other carriers in countering the effects of the crises, but we will never cut corners on safety.”

The PAL official said safety consciousness is intrinsic to the airline’s operations. “It is part of our way of doing business. It is second nature to our staff, whether at the frontlines or the back office. We put a very high premium on safety compliance.”

PAL, said Bautista, has been included in the registry of airlines that passed the Iata (International Air Transport Association) Operational Safety Audit, or IOSA. “We therefore lay claim that PAL is the only Philippine-registered airline that is IOSA-certified, in compliance with Iata’s recent requirements for all its members.”

He stressed the importance of sharing the responsibility of promoting safety in order to survive the series of challenges plaguing the world today.

“Amid a rapidly changing aviation- industry landscape affected by the global economic slump, compounded by the A(H1N1) flu-virus pandemic and other dreadfully pernicious drawbacks, industry players are adjusting and adapting—just as we are—to be able to survive the overlapping crises,” he said.

This harsh industry environment has prompted some airlines to take bold and innovative measures. Bautista cited British Airways and Cathay Pacific, which both asked their

employees to take unpaid leaves or work with no pay. The chief executive and chief finance officer of British Airways are taking the lead by promising to work next month without withdrawing their salary.

Singapore Airlines, on the other hand, is implementing shorter work months and a freeze on wages, and is grounding 17 of their aircraft.

A number of US airlines are scrimping on their cabin service amenities. Northwest Airlines is reducing the number of available reading materials and snack items. Delta Air, American Airlines and Northwest have removed pillows from all domestic flights.

Delta has also been pushing for the use of automated, self-service check-in kiosks at airports instead of live agents. A study showed check-in kiosks cost airlines 16 cents a passenger, compared with $3.68 using ticket-counter agents.

Meanwhile, Emirates Airline redesigned its seats, taking away the foot rest, resulting in considerable aircraft weight reduction that translates to less fuel consumption.

“These manifest the perilous cost-cutting bandwagon that borders dangerously on safety issues of airline operations. I hope that through this FAA seminar, we can clearly distinguish those borders that should not be crossed,” said Bautista.

During the recent Iata annual general meeting, Giovanni Bisignani, its director general and CEO, said that last year’s total loss of airlines around the world reached more than $10 billion. For this year, he expects the total loss to reach $9 billion, due to falling demand, collapsing yields, broken consumer confidence and pandemic fears.

Total revenue of all airlines for this year is forecast to hit a staggering negative $80 billion, while the world’s jets and turboprop aircraft will consume a total of $106 billion worth of aviation fuel.

“Remember that before we faced the flu-virus pandemic, before the global financial crisis, we all got jolted by the all-time-high prices of fuel in the world market. The Association of Asia-Pacific Airlines [AAPA] echoed the gloomy observations of Iata when the AAPA reported an unprecedented 2.5 million fewer passengers who traveled on Asia-Pacific routes in the first two months of 2009,” said Bautista.

The PAL official hopes that gathering all key industry players in one venue to discuss maintenance safety is the right direction toward recognizing the responsibility they all share in promoting safety regardless of the economic environment.

“The fact remains that each of us has important roles to play in maintaining safe operations both in the air and on ground. Acquiring new insights or knowledge in this seminar will certainly be an important first step, no matter how trivial it may seem in the context of the global effort to promote air safety. The key to a successful cooperation of efforts at promoting safety is understanding the degree of complexity at which the aviation industry has evolved,” he said.

PAL is hosting the three-day seminar which aims to ensure uniformity in safety practices in civil-aviation maintenance.

Expected to attend are over 160 aviation-industry representatives from China, Japan, Korea, Malaysia, Guam, Taiwan, Singapore, Macau, Papua New Guinea and the Philippines. Two representatives from the American Embassy in Manila will also attend as observers.


PAL performs CAAP job

Hosts airline industry maintenance safety seminar

June 29 2009

MANILA - The Philippines is hosting its first-ever seminar to promote uniformity in safety practices in civil aviation maintenance through the joint efforts of the Philippine Airlines (PAL) and the Civil Aviation Authority of the Philippines (CAAP).

In a press release, PAL said that the Federal Aviation Authority (FAA) Maintenance Safety Seminar will take place on June 29 to July 1.

"The seminars are being conducted by the FAA in different countries in the Asia-Pacific region, in cooperation with the local aviation authority, conveying safety principles and practices," PAL said.

The seminar in the Philippines, to be held at the Century Park Hotel, will be conducted by the FAA San Francisco International Field Office. The office will be represented by assistant office manager Lori L. Aquilino; principal maintenance inspector for Philippines Larry D. Moheit; and the FAA Safety Team represented by Western Pacific FAASTeam Program Managers Jim R. Hein, Randall T. Prine and Kathleen O'Brien.

The Civil Aviation Authority of the Philippines, represented by Director- General Ruben F. Ciron, Eduardo G. Batac, director of Flight Standards Inspectorate Service and Teodoro L. Lasmarias, chief of Flight Operations Division, will be among the speakers and presentors during the seminar.

More than 160 aviation industry representatives from China, Japan, Korea, Malaysia, Guam, Taiwan, Singapore, Macau, Papua New Guinea and the Philippines are expected to attend. Two representatives from the American Embassy in Manila will also be in attendance as observers.

Similar seminars have been conducted in Japan, Taiwan, China and Australia.

Lufthansa Technik Philippines (LTP) – PAL's maintenance service provider – will host a dinner and a tour of LTP facilities on June 29 in support of the event. (abs-cbnNEWS.com)

AirAsia squares-off with Cebu Pacific.

Introduces Jakarta service in September

Jakarta - AirAsia subsidiary Indonesia AirAsia will commence daily flights between Jakarta and Manila in September as it compete head on for the first time with Asia-Pacific's third biggest budget carrier Cebu Pacific.

AirAsia had been finding difficulty in securing landing right between Manila and Cebu to points in Kota Kinabalu and Kuala Lumpur which tied its flight in Manila-Clark, a budget airport north of the capital, while there are no restrictions from Bangkok and Jakarta.

In a press conference Bapak Dharmadi, Indonesia AirAsia CEO said that the airline is almost ready to square off with the Philippines budget carrier on Jakarta-Manila route.

It will also expand existing flights from Jakarta-Singapore and Denpasar-Singapore routes from twice to four times daily while its Kuala Lumpur flights would be increased from 2 to 3 flights per day, according to Dharmadi. The airline is also set to fly Denpasar-Perth, in Australia starting July, and Saigon, Vietnam beginning September.

"We are just finalizing some things but we are ready to begin our Manila service in September," said Dharmadi as they are hoping to capture a substantial share of the volume of budget passengers traveling back and forth between Jakarta and Manila, a route currently dominated by Philippine budget carrier Cebu Pacific. The Philippines is just one of the new destinations Indonesia AirAsia is adding in an effort to grow its regional services.

Currently, 80 percent of Indonesia AirAsia flights are domestic while the other 20 percent are regional. The company is aiming to change this ratio to 75 against 25 percent, Dharmadi said.

“We have seen short-haul travel within the Asian region growing between five and ten percent over the last two years. This is partly been caused by a decline in long-haul travel to destinations outside the region,” Dharmadi stressed.

As part of its strategy to cater for the growing short-haul travel market, the company is aiming to have a fleet of 45 aircraft, all Airbus, within the next five years.

Earlier, the airline had announced its plans to open at least 10 international routes to Indonesia this year to help reach its target to carry 3.5 million passengers from Southeast Asia’s largest economy.

AirAsia is the largest low cost carrier in Asia Pacific with bases at Malaysia, Thailand and Indonesia. It is currently negotiating a deal with a small airline in the Philippines to establish its local subsidiary.

CAAP bans ‘two-way’ traffic in Caticlan airport


Attributes Overran to Pilot Error

Written by Recto Mercene
29 June 2009

STARTING on June 26, the Civil Aviation Authority of the Philippines (CAAP) has banned the dual use of the Caticlan runways and reimposed the “one-way landing, one-way take-off” policy, already existing as a rule prescribed in an official document called the Aeronautical Information Publication (AIP).

Caticlan Airport, also known as the Godofredo P. Ramos Airport, has runways 06-24 and previously pilots could use either runway as they choose to do so.

CAAP, however, discourages the use of runway 24 for landing because of a 39-meter hill close to where the runway ends.

The new edict reinforces the existing AIP ruling that runway 06 would be used exclusively for [landing while runway 24 would be used for take-off over a 950-meter long runway](now reduced to 820 per July 2009 NOTAM).

CAAP director general Ruben Ciron has ordered the limitations imposed following an incident involving a Zest Air MA60 aircraft on Thursday.

The Zest Air passenger plane attempted to land on runway 24 but touched down past the threshold, or landing spot marked by white grid lines, in trying to avoid the hilltop. The twin-engine turboprop’s momentum carried it beyond the runway’s end settled on a grassy portion of the field. No one among the 55 passengers was hurt.

To prevent such incident from happening again, the CAAP chief banned the dual use of the runway. The new directive would mean that aircraft barred from landing on runway 24 because of unfavorable wind conditions or load factors would have to divert to Kalibo airport.

Caticlan Airport in Panay is the main gateway to the famed beaches of Boracay Island. Records show that 40 flights on average fly out of the Godofredo P. Ramos Airport per day.

In two separate meetings on Saturday, Ciron met with executives of Philippine Airlines and Cebu Pacific Air Inc., the latter represented by its president and CEO Lance Gokongwei, to discuss the new policy on Caticlan Airport. Both carriers appealed to Ciron to lift the ban, citing that it would adversely affect their operations.

Ciron instructed officials from both airline companies to submit a more detailed proposal to support their appeal. The proposals would be studied by a review board comprising of CAAP officials and experts from the International Civil Aviation Organization, which would study the airlines’ request for exemptions, taking into consideration the pilot’s experience and qualifications, aircraft performance and load factors, and prevailing weather conditions in the area.

According to Ciron, the upgrading of Caticlan Airport will soon be under way through a build-operate-transfer scheme approved by the Department of Transportation and Communications. Under the project, the runway would be extended to accommodate an Airbus320 aircraft or similar aircraft in size and performance and the passenger terminal would be modernized.

In the meantime, the CAAP chief said they are in the process of negotiations to remove the hill at the end of runway 24, a major obstacle that hinders pilots from making a safe approach when landing.

The CAAP considers the removal of the hill as an immediate solution to the pilots’ dilemma. Details are now being finalized with Manuel Blanco of the Aklan Resort Corp. and other lot owners for the implementation of the plan, Ciron said.

Landing on Tail wind

Planes landing gear remains stuck on the mud

Video Courtesy ABS-CBN

June 26, 2009

Airport remains closed today as technical crews failed to retrieved the plane from the runway end safety area (RESA), an unpaved portion at the end of the runway that further restrict the rolling movements of an aircraft overshooting a runway. It is normally 30 meters in length at the end of paved runway.

The ditch and the mud that helped stop the plane from going further to the sea is also the reason for its difficult retrieval operations as three payloaders failed to remove it away from the runway.

Initial investigation showed that the pilot, Capt. Bernard Hervoso, was directed by air traffic controller to use Runway 06, the “active” runway at the time of approach when he asked for landing instructions from the tower. However, it was reported that Hervoso requested to use Runway 24 instead which was in the wind.

The request was granted, although it would mean that the airplane would be landing with a tail wind. Wind-speed was not immediately known and if it was minimal as not to affect the landing procedure.

Investigators are now verifying eyewitnesses reports that the plane was flying very fast on finals and landed almost at the middle of the less than a kilometer long runway. There was also allegation that the aircraft was overweight on landing as it was carrying more than that allowed for the aircraft for landing at Caticlan airport. There has been suspension of all flights a day before the accident due to typhoon. The MA-60, Q300 and ATR72 which uses the runway are all listed by CAAP to fly Caticlan with weight restrictions, meaning they cannot carry full load of passengers and cargo.

Flight operations in and out of the airport is expected to return to normal schedule by tomorrow.

ICAO Data disclosed that runway overruns and undershoots by aircraft are a relatively frequent occurrence in the world with an average of at least one happening every week worldwide.

Runway overruns are the fourth largest cause of airline fatalities in the US alone. It has been stated by the FAA Airport Design Division that approximately 90% of runway undershoot or overruns are contained within 300 metres of the runway end.

The existence of RESA at the airports runway contributed to a reduction in the consequences of such over-runs as has frequently been demonstrated in avoidable hazardous outcomes as exemplified by this overrun incident.

Zest Air overshoots Caticlan


Video Courtesy GMANews.TV

Caticlan - Zest Air suffered another landing error today when its plane, an MA-60 aircraft of Xian Aircraft Company with registration number RP-C8992 suffered a tire-blowout on touchdown and consequently overshot Caticlan runway 06 at 7:43 this morning.

The Zest Air flight Z2-863 from Manila carried 54 passengers, one flight mechanic, and four crew. No one was reported hurt in the accident. No substantial damage was reported to the aircraft that might affect its fuselage integrity.

The Civil Aviation Authority of the Philippines (CAAP) closed the airport and suspended flights to Caticlan until 6 p.m. Thursday after the nose gear of the plane was stuck on the ditch at the end of the runway which make its removal difficult. Lifting equipments from the airline's maintenance department were ferried from Manila to Kalibo and brought to Caticlan later that day to remove the plane safely to the airports apron for inspection.

Philippine Airlines Express, Cebu Pacific and Zest Air diverted all their remaining flights (Manila-Caticlan-Manila) to Kalibo due to the airport's closure. Flights from Cebu were also diverted to Kalibo airport.

The plane is expected to fly back tomorrow for Manila after safety checks and CAAP accident investigation. It will be flown back to its manufacturer for repair and is expected to be return into service within 2 months time. All the MA-60 fleet of Zest Air are less than a year old.

It is the second time a Zest Air plane had a landing accident in Caticlan in six months. In January, a similar turboprop aircraft undershot the runaway, wounding at least three passengers. The cause of the accident was reported to be pilot error in crosswind landing but the investigation was not officially released to the public. The plane was written-off and replaced by its insurer.

The airline is however confident of the aircraft and its operational dynamics which prompted it to buy six more frames from AVIC's Xi'an Aircraft Industry Co. last month.

CAAP No Funds for Safety Upgrade

But Earns 3.3 Billion pesos in Revenues and spends 14 million for faith renewal

The Civil Aviation Authority of the Philippines (CAAP) denied that it had not spent a single centavo on the conduct of “values education” and “purpose-driven life” seminars for its employees but admitted that it had a P14.81 million plan to conduct a “Spiritual Advancement Values Education (SAVE)” program but the project has not yet been implemented.

In a press briefing, Ruben Ciron, CAAP Director General who was a retired Philippine Air Force (PAF) General, said that they were still in the process of having the P14.81-million program approved by the CAAP board, headed by Transportation Secretary Leandro Mendoza who acts as its chairman before funds would be release.

Ciron defended that CAAP was only pursuing the values education program in compliance with a directive of President Gloria Arroyo to lead moral renewal in their respective institutions.

“What we have started is a continuing values education program pursuant to Administrative Order No. 255 issued by President Arroyo on January 30, 2009 directing the heads of the executive department to lead moral renewal in their agencies,” Ciron said.

The agency already conducted values education seminars at the CAAP central office along MIAA Road in Pasay City and in eight major airports nationwide, but such seminar did not spend CAAP funds.

Ciron said the 2,000 employees that have attended the seminars were given free copies of the Bible donated by benefactors but refused to divulged who the sponsors were and who paid for the food and accommodation bills.

Inside source who does not want to be named however disclosed that the unnecessary and overpriced program was already in effect and has disbursed closed to 4 million pesos for the associated expenses which would have been spent for the training of aircraft check pilots and to satisfy the other requirements of the US FAA.

Contrary to CAAP's argument, there may not be available local talents for the vacant job but there are qualified and eligible foreign consultants who are applying but are not considered for unknown reasons. They are supposed to served as instructors and trainers to meet the agency's safety and security requirements but the office opted instead to appoint ex-Air Force Officers as consultant who haven't flown even an Airbus 320 yet has something to say how the pilots fly their plane. How wrong can that be says the insider.

The insider further said that 14 million pesos is enough to hire foreign consultants that applied for the job but not considered and would have expedited FAA deficiency. Even Philippine Airlines and Cebu Pacific hire expatriates to do the job not locally available.

Meanwhile, CAAP employees said the program only used up much of the agency’s funds as well as employees’ time when the agency was supposed to be focusing on the effort for the country to regain its Category I status with the United States’ Federal Aviation Authority (FAA).

From burgers to airports

George Yang bags right to run Boracay gateway

BY KRISTINE JANE R. LIU

A Company headed by businessman George T. Yang — known for growing the McDonald’s hamburger chain in the Philippines — has won a 25-year contract to develop and operate an airport which serves as a gateway to the popular resort island of Boracay.

"We are going to make the existing airport an international one that can accommodate bigger planes," Mr. Yang, Caticlan International Airport and Development Corp. (CIADC) chairman, said in an interview.

CIADC and the Transportation department yesterday signed a concession agreement giving the former the right to upgrade, expand and operate the Godofredo P. Ramos Airport in Caticlan, Aklan in the neighboring island of Panay.

The group’s plan include expanding the under one-kilometer (.95 km) runway to 2.2 km and in the near term expand the existing terminal before constructing a new facility that can accommodate 1.5 million passengers a year.

"Right now, it can accommodate 40 to 50 flights per day but mostly small local planes that have a seating capacity of 30 to 50 passengers. We hope to introduce Airbuses in the future," Mr. Yang said, adding that he expects the number of foreign tourists to go up when regional flights start coming in.

Mr. Yang said they plan to start redevelopment as soon as they get a permit to start. The entire project, he added, will likely take around three to five years and cost some P2.65 billion.

Mr. Yang said this would be his first venture into the airport industry, having focused on the residential, resorts and hotels, and food businesses.

"We joined the bidding because there is a definite need for the [bigger] airports. This is the only privatization that we are interested in so far," he said.

Details of his firm’s offer were not immediately available. The 25-year concession agreement, officials said, is renewable for another 25 years and will be implemented under the build-operate-transfer law.

Adjacent to the airport is a 10-hectare property development which will be the site of an airport hotel, condotels and other commercial establishments. The company plans to have the entire project area declared by the government as a tourism development zone.

The airport upgrade is deemed critical to the overall positioning of Boracay and Aklan as an international tourism destination, particularly for South Koreans and Chinese.

Mr. Yang, who also owns the local McDonald’s franchise through Golden Arches Development Corp., already has existing hotel and leisure developments in Boracay which include the Fairways and Blue Water golf resort and the Balaihara Newcoast Villatel.

Top Operating Airlines in the Philippines

PHILIPPINE AVIATION DATA
TOP INTERNATIONAL AIRLINES IN THE PHILIPPINES
As of March 2009
RANK AIRLINE NAME CODE PASSENGERS
1 Philippine Airlines PR 880,642
2 Cathay Pacific CX 355,547
3 Cebu Pacific 5J 352,226
4 Asiana Airlines OZ 129,538
5 Singapore Airlines SQ 128,133
6 Northwest Airlines NW 125,598
7 Japan Airlines JO 105,842
8 Emirates Airlines EK 99,376
9 Thai Airways TG 72,039
10 Gulf Air GF 68,971


TOP DOMESTIC AIRLINES IN THE PHILIPPINES
As of March 2009
RANK AIRLINE NAME CODE PASSENGERS
1 Cebu Pacific 5J 1,609,405
2 Philippine Airlines PR 1,512,614
3 Air Philippines 2P 124,516
4 Zest Airways Z2 114,611
5 Seair DG 42,724

Source: Civil Aeronautics Board
DOTC, Republic of the Philippines

RP, UK to amend ASA


Hold talks next month for EU Clause

By Lenie Lectura


THE Philippine air panel will hold bilateral negotiation with its counterpart in the United Kingdom next month to amend the air services agreement (ASA) between the two countries, the Civil Aeronautics Board (CAB) on Monday said.

“The air talks will be held July 7 to 9. Basically, the main issue in the upcoming air talks is to be able to update the agreement and hopefully include the European Union Community clause in the updated agreement,” said CAB Deputy Executive Director Porvenir Porciuncula in a phone interview on Monday.

Under the existing air pact between the Philippines and the UK, each country is authorized to field seven flights a week for airlines using bigger aircraft such as the Boeing 747, and maximum of 10 weekly flights for smaller aircraft.

“Even if there is no demand, we are open still to discussions to possibly amend the ASA. If there will be proposals to operate the UK-Manila route, then why not? Right now, there is no Philippine carrier mounting flights to UK and vice versa,” added the CAB official.

The Philippine air panel was supposed to hold similar talks with Cambodia this month. “But we did not get any confirmation from them so it would be postponed,” added Porciuncula.

The CAB is a member of the Philippine air panel. The other members are composed of officials from the Departments of Transportation and Communications, of Foreign Affairs, and of Tourism; Clark International Airport Corp.; and representatives from local airline companies.

They are set to hold bilateral negotiations to amend the existing ASA with China, Italy, Iceland and Korea soon, said Porciuncula.

In May, the Philippines and Spain sealed a new ASA, fielding 28-weekly flights for each country. From Manila to Madrid and Barcelona, there were seven flights per week awarded to the Philippines. To Madrid and Barcelona from Clark’s Diosdado Macapagal International Airport, 14 weekly flights were allocated.

Other points in the country, except Manila and Clark, were allotted seven flights a week. The same goes for Spain in which daily flights were also made available, except for Mardid and Barcelona.

Also, Manila was granted rights to service 200 tons of cargo per week while Clark got 300 tons per week. “For cargo, seven flights per week were also granted,” said CAB Executive Director Carmelo Arcilla.

This was the eighth air pact sealed by the Philippine air panel since the start of the year. Last month a new deal with Singapore was finalized.

ASAs were sealed with Brunei and Australia last March; Kuwait and Bahrain in February; and Qatar and the United Arab Emirates in January.

Asia's Budget Airline Carriers Ride Out Troubled Economic Times






Asia's budget airlines have grown rapidly in recent years. And while some are faring well, the sector faces a bumpy ride as economic turbulence hits both domestic and international travel.

Asia's low-cost airlines, which took off in good economic times, are facing the stiff headwinds of the global economic downturn.

The International Air Transport Association warns that Asia's aviation industry is in "survival mode," with airlines forecast to lose over $3 billion this year.

Some air carriers focus on domestic market to prevent losses


But some low-cost carriers are doing a bit better than average as more travelers seek to cut costs.

Bruce Buchanan, Jetstar Group's general manager of commercial operations, Tokyo (File)
Bruce Buchanan, Jetstar Group's general manager of commercial operations, Tokyo
AP file
"That's pretty much what we're seeing in the airline business. We've seen premium traffic down - we're seeing the value-based airlines up and succeeding and doing well," says
Bruce Buchanan, the chief executive officer of the A
ustralian low-cost carrier Jetstar.

But he says budget carriers in Asia face several obstacles, especially tough regulations and government control over airports and fees.

Still, he says, budget airlines are adapting to the challenges, and working with governments to create opportunities. Jetstar, for one, plans to expand its Singapore operations, creating a strategic hub.

In May, Singapore allowed more flights to the Philippines, especially for low-cost flights, targeting smaller markets such as Cebu and Davao. Traffic between the two countries grew 12 percent last year.

And relaxed regulations have led to more budget flights connecting Singapore and Malaysia.

New policies help financial recovery of some low-cost airlines

Malaysia's Air Asia has been a success story in turbulent times. First-quarter net profit rose by more than 25 percent this year, buoyed by a jump in passenger numbers.

John Koldowski, a spokesman for the Pacific Asia tourism Association, says Air Asia's gain must mean pain for some higher-cost competitors.


"One would assume in a climate where the pie is not growing that rapidly - if at all - that for them to still be improving their numbers, then they're taking market share from someone else," he said.

But not all budget carriers are doing as well. In Thailand, most airlines struggle because of the global economic slump, domestic political tensions and the threat of swine flu.

Nok Air, Thailand's state-owned low-cost carrier, has had to refocus on the domestic market, overhaul routes, cut overseas services, reduce its fleet and shed staff. From a loss of $16 million last year, it recently reported a six-month profit of over $4 million.

Sehapan Chumsai, a Nok Air executive vice president, says the airline's attention will be on the domestic market for the foreseeable future.

"At the moment we have already passed the financial crisis from the fuel crisis last year - at the moment we are back into a good balance sheet," said Sehapan Chumsai.

Budget airlines in India also face tough times.

"India is most certainly going through a difficult stage of repair after a surge in growth, which hit a ceiling of a combination of infrastructure, too many airlines in too short a time," said Peter Harbison, the executive chairman at the Center for Asia Pacific Aviation in Sydney.

Because of high fuel prices, hefty taxes, and the economic downturn, India's Kingfisher Airlines lost over $200 million in the nine months that ended in December.

Low ticket prices, tough economy cause fierce competition among all airline

Despite problem areas, the growth of budget carriers across Asia has forced full-service airlines to compete hard.

"The legacy [full-service] carriers are fighting back to regain market share they'd lost previously to the low cost, by offering extremely good deals," said Brian Sinclair-Thompson, general manager in Thailand for Swiss International Air. "The fares we've got on Swiss, the prices are the lowest - I've been here 10 years - we've never had lower fares than we've got today. So I think we're meeting the low-cost challenge."

He says the comfort and service of the big airlines will keep customers coming back.

Still, low-cost airlines have established a special place in Asia's travel industry. But having grown rapidly during the boom years, many budget carriers find the tough economy forces them to rethink expansion plans.

While hoping for an economic recovery, many of them are focusing on domestic markets and short-haul flights to secure a future in the region's skies.(VOA)

CAAP Gone Haywire


Spends P14 million for Bible study
instead of hiring qualified personnel for safety standards

June 23, 2009

By Rainier Allan Ronda
Photo is loading...

MANILA, Philippines – The newly created Civil Aviation Authority of the Philippines (CAAP) is currently spending more than P14 million for a “values education” and “purpose driven life” seminar for all its employees.

Employees of the CAAP, who requested anonymity, told The STAR that retired Philippine Air Force (PAF) general Ruben Ciron, CAAP director general, has allotted a budget of P14,819,080 for a supposed “Spiritual Advancement Values Education” (SAVE) program that started in September 2008.

The program reportedly entails an employee attending “multi-level” 25-hour values education and “purpose-driven life” seminars supervised by Ciron’s consultant, Bishop Ernesto Sacro who, like the CAAP chief, is a retired military general or a Philippine Navy commodore.

So-called “organic” CAAP employees, or those that have been absorbed from its forerunner, the Air Transportation Office (ATO), characterized the SAVE program as a highly suspicious and unnecessary undertaking that uses up much of the agency’s funds and even diverts its focus as it tries to regain a Category I status with the United States’ Federal Aviation Authority (FAA) that it lost in December 2007.

“We should be focusing our resources and our energies towards satisfying the US FAA requirements so that we can regain Category I status which is the main reason why the CAAP was created,” a source told The STAR.

“But with this Bible study program of the CAAP leadership, we have wasted our funds as well as the precious time of our employees,” the source added.

The CAAP was formed upon signing into law of Republic Act 9497, otherwise known as the CAAP Law, in March 2008.

The passage of the CAAP Law was rushed as the country scrambled to regain Category I status with the US FAA.

The Philippines’ downgrade to Category II status particularly hit the country’s leading carrier, Philippine Airlines, since it was prevented from opening more routes to and from the United States and from upgrading its aircraft on these routes.

Organic CAAP employees had earlier aired dissatisfaction with Ciron’s appointment of numerous fellow retired military officials to key CAAP positions without the requisite civil aviation technical expertise and training.

To avoid questions on the appointment of these unqualified retired military officers, Ciron hired them as “consultants,” the sources said.

5J Overtakes PR to take lead while MNL moves up

Aviation World Statistics
OAP DATA
18/06/2009

Top 100 Airlines of the world

by Number of Flights as of june 2009

Ranking Airline Code Airline Name Frequency
1 DL DELTA AIR LINES 26,898
2 AA AMERICAN AIRLINES 24,893
3 UA UNITED AIRLINES 23,996
4 US US AIRWAYS 22,936
5 WN SOUTHWEST AIRLINES 22,373
6 CO CONTINENTAL AIRLINES 18,554
7 NW NORTHWEST AIRLINES 17,372
8 LH LUFTHANSA GERMAN AIRLINES 13,623
9 AF AIR FRANCE 11,022
10 AC AIR CANADA 10,601
11 CZ CHINA SOUTHERN AIRLINES 9,440
12 FR RYANAIR 8,512
13 MU CHINA EASTERN AIRLINES 8,075
14 U2 EASYJET 7,163
15 NH ALL NIPPON AIRWAYS 6,764
16 JJ TAM LINHAS AEREAS 6,359
17 IB IBERIA 6,249
18 CA AIR CHINA 6,171
19 BA BRITISH AIRWAYS 5,897
20 AS ALASKA AIRLINES 5,896
21 G3 VARIG-GOL AIRLINES/ VRG LINHAS AEREAS S.A. 5,421
22 SK SAS SCANDINAVIAN AIRLINES 5,414
23 FL AIRTRAN AIRWAYS 5,237
24 JL JAPAN AIRLINES INTERNATIONAL 5,219
25 QF QANTAS AIRWAYS 4,690
26 B6 JETBLUE AIRWAYS CORPORATION 4,333
27 AB AIR BERLIN 4,276
28 TK TURKISH AIRLINES 4,194
29 KL KLM-ROYAL DUTCH AIRLINES 4,102
30 NZ AIR NEW ZEALAND 3,690
31 BE FLYBE 3,499
32 AM AEROMEXICO 3,319
33 AZ ALITALIA - COMPAGNIA AEREA ITALIANA S.P.A. 3,120
34 ZH SHENZHEN AIRLINES 3,044
35 DJ VIRGIN BLUE 2,947
36 OS AUSTRIAN AIRLINES AG 2,929
37 IT KINGFISHER AIRLINES 2,859
38 HU HAINAN AIRLINES 2,805
39 LX SWISS 2,754
40 MH MALAYSIA AIRLINES 2,737
41 MX MEXICANA DE AVIACION 2,682
42 SV SAUDI ARABIAN AIRLINES 2,679
43 WS WESTJET 2,634
44 KE KOREAN AIR 2,618
45 SA SOUTH AFRICAN AIRWAYS 2,599
46 9W JET AIRWAYS INDIA 2,472
47 F9 FRONTIER AIRLINES INC. 2,469
48 IC INDIAN AIRLINES 2,234
49 AV AVIANCA 2,186
50 9K CAPE AIR 2,177
51 EK EMIRATES 2,169
52 AK AIRASIA 2,106
53 WF WIDEROE'S FLYVESELSKAP 2,013
54 ZK GREAT LAKES AIRLINES 1,990
55 MF XIAMEN AIRLINES COMPANY 1,986
56 DY NORWEGIAN AIR SHUTTLE 1,926
57 FM SHANGHAI AIRLINES 1,890
58 GA GARUDA INDONESIA 1,851
59 LA LAN AIRLINES 1,827
60 OA OLYMPIC AIRLINES 1,815
61 TP TAP AIR PORTUGAL 1,815
62 OZ ASIANA AIRLINES 1,814
63 2F FRONTIER FLYING SERVICE 1,712
64 CM COPA AIRLINES 1,690
65 5J CEBU PACIFIC AIR 1,665
66 SU AEROFLOT RUSSIAN AIRLINES 1,638
67 3U SICHUAN AIRLINES 1,602
68 EI AER LINGUS 1,602
69 TG THAI AIRWAYS INTERNATIONAL 1,601
70 X3 TUIFLY 1,577
71 LO LOT - POLISH AIRLINES 1,573
72 PR PHILIPPINE AIRLINES 1,566
73 MS EGYPTAIR 1,552
74 OK CZECH AIRLINES 1,551
75 JK SPANAIR 1,546
76 AY FINNAIR 1,507
77 VN VIETNAM AIRLINES 1,490
78 SN BRUSSELS AIRLINES 1,478
79 SC SHANDONG AIRLINES 1,476
80 HA HAWAIIAN AIRLINES 1,474
81 BD BMI BRITISH MIDLAND 1,453
82 TOM THOMSON AIRWAYS 1,448
83 JQ JETSTAR AIRWAYS 1,422
84 QR QATAR AIRWAYS 1,406
85 SQ SINGAPORE AIRLINES 1,375
86 CX CATHAY PACIFIC AIRWAYS 1,360
87 4U GERMANWINGS 1,324
88 JT LION AIR 1,313
89 AP AIR ONE 1,302
90 YX MIDWEST AIRLINES 1,280
91 UT UTAIR AVIATION 1,267
92 A3 AEGEAN AIRLINES 1,218
93 ZL REGIONAL EXPRESS 1,179
94 UX AIR EUROPA 1,154
95 IG MERIDIANA 1,128
96 MA MALEV HUNGARIAN AIRLINES 1,112
97 S7 S7 AIRLINES 1,103
98 NT BINTER CANARIAS 1,088
99 NK SPIRIT AIRLINES 1,072
100 AR AEROLINEAS ARGENTINAS 1,069

Top 100 Airports OF THE WORLD

by Seat Capacity Available on International Departing Flights as of June 2009

Ranking Departure

Airport Code

Departure Airport Name Total Number

of Seats

1 LHR LONDON HEATHROW APT 814,142
2 CDG PARIS CHARLES DE GAULLE APT 705,541
3 FRA FRANKFURT INTERNATIONAL APT 636,410
4 HKG HONG KONG INTERNATIONAL APT 563,659
5 DXB DUBAI 541,287
6 AMS AMSTERDAM 525,302
7 SIN SINGAPORE CHANGI APT 495,468
8 BKK BANGKOK SUVARNABHUMI INTERNATIONAL APT 397,585
9 NRT TOKYO NARITA APT 388,108
10 ICN SEOUL INCHEON INTERNATIONAL AIRPORT 380,618
11 MAD MADRID BARAJAS APT 375,892
12 LGW LONDON GATWICK APT 329,863
13 MUC MUNICH INTERNATIONAL AIRPORT 328,663
14 JFK NEW YORK J F KENNEDY INTERNATIONAL APT 315,668
15 ZRH ZURICH AIRPORT 289,593
16 FCO ROME FIUMICINO APT 284,827
17 TPE TAIPEI TAIWAN TAOYUAN INTERNATIONAL APT 282,976
18 KUL KUALA LUMPUR INTERNATIONAL AIRPORT 274,733
19 IST ISTANBUL ATATURK AIRPORT 256,697
20 VIE VIENNA 254,848
21 DUB DUBLIN 249,396
22 CPH COPENHAGEN APT 242,845
23 BRU BRUSSELS AIRPORT 237,164
24 STN LONDON STANSTED APT 231,711
25 MIA MIAMI INTERNATIONAL APT 220,156
26 BCN BARCELONA APT 216,965
27 PVG SHANGHAI PUDONG INTERNATIONAL APT 208,985
28 PMI PALMA MALLORCA 206,255
29 YYZ TORONTO LESTER B PEARSON INTL APT 201,032
30 MXP MILAN MALPENSA APT 192,818
31 DOH DOHA 192,300
32 DUS DUSSELDORF INTERNATIONAL AIRPORT 183,764
33 LAX LOS ANGELES INTERNATIONAL APT 182,653
34 PEK BEIJING CAPITAL APT 170,239
35 MAN MANCHESTER INTERNATIONAL APT 169,931
36 ORY PARIS ORLY APT 166,092
37 PRG PRAGUE 160,684
38 CAI CAIRO 160,329
39 ATH ATHENS INTL ELEFTHERIOS VENIZELOS APT 156,430
40 BAH BAHRAIN 150,472
41 EWR NEWARK LIBERTY INTERNATIONAL APT 149,061
42 ORD CHICAGO O'HARE INTERNATIONAL APT 145,511
43 ARN STOCKHOLM ARLANDA APT 144,677
44 ATL ATLANTA HARTSFIELD-JACKSON INTL APT 143,256
45 LIS LISBON 142,718
46 MNL MANILA NINOY AQUINO INTERNATIONAL APT 141,615
47 KWI KUWAIT 140,821
48 AUH ABU DHABI INTERNATIONAL APT 139,079
49 GVA GENEVA 138,496
50 SYD SYDNEY KINGSFORD SMITH APT 137,513
51 HEL HELSINKI 130,772
52 SVO MOSCOW SHEREMETYEVO INTERNATIONAL APT 128,487
53 AGP MALAGA 124,924
54 OSL OSLO AIRPORT 124,849
55 KIX OSAKA KANSAI INTERNATIONAL AIRPORT 124,767
56 TLV TEL AVIV BEN GURION INTERNATIONAL APT 121,009
57 BUD BUDAPEST 118,544
58 DME MOSCOW DOMODEDOVO APT 118,413
59 JNB JOHANNESBURG O.R. TAMBO INTERNATIONAL 116,132
60 GRU SAO PAULO GUARULHOS INTL APT 115,074
61 BOM MUMBAI 115,017
62 IAH HOUSTON GEORGE BUSH INTERCONTINENTALAP 109,118
63 JED JEDDAH 109,063
64 SJU SAN JUAN LUIS MUNOZ MARIN INTL APT 108,719
65 LTN LONDON LUTON APT 108,300
66 DEL DELHI 108,092
67 SFO SAN FRANCISCO INTERNATIONAL APT 106,631
68 TXL BERLIN TEGEL APT 104,854
69 BHX BIRMINGHAM INTERNATIONAL AIRPORT 102,228
70 CGK JAKARTA SOEKARNO-HATTA APT 100,486
71 EZE BUENOS AIRES MINISTRO PISTARINI 99,225
72 YVR VANCOUVER INTERNATIONAL APT 98,570
73 NCE NICE 96,824
74 WAW WARSAW 95,628
75 ALC ALICANTE 95,324
76 IAD WASHINGTON DULLES INTERNATIONAL APT 93,269
77 MEX MEXICO CITY JUAREZ INTERNATIONAL APT 90,377
78 HAM HAMBURG AIRPORT 90,348
79 STR STUTTGART AIRPORT 89,164
80 RUH RIYADH 87,367
81 YUL MONTREAL PIERRE ELLIOTT TRUDEAU INT APT 84,701
82 AKL AUCKLAND INTERNATIONAL APT 84,654
83 SGN HO CHI MINH CITY 83,297
84 CGN COLOGNE/BONN K.A.APT 82,828
85 PTY PANAMA CITY TOCUMEN INTERNATIONAL 79,797
86 BEY BEIRUT 79,426
87 MCT MUSCAT 76,302
88 CMN CASABLANCA MOHAMED V APT 76,240
89 AMM AMMAN QUEEN ALIA INTERNATIONAL APT 74,406
90 CUN CANCUN 70,969
91 VCE VENICE MARCO POLO APT 70,808
92 LIM LIMA 69,148
93 FAO FARO 67,185
94 SXF BERLIN SCHOENEFELD APT 65,579
95 BGY MILAN ORIO AL SERIO APT 64,996
96 DFW DALLAS/FORT WORTH INTL APT 64,968
97 RIX RIGA 64,857
98 PHL PHILADELPHIA INTERNATIONAL APT 64,227
99 NBO NAIROBI JOMO KENYATTA INTERNATIONAL APT 64,010
100 MEL MELBOURNE AIRPORT 63,829

For further information please e-mail: max@oag.com
Source:OAG MAX Online