LCCs told to utilize new airport facilities

CEBU, Philippines — The Philippine government through the Civil Aviation Authority of the Philippines (CAAP) is calling on low cost carriers (LCCs) in Northern Asia to take advantage the country’s new and improved airport facilities.

CAAP Director General Capt. Jim C. Sydiongco presented to the delegates of yesterday’s CAPA Centre for Aviation LCC Summit held at Radisson Blu Hotel Cebu, the Philippines’ aggressive move to develop airport facilities in major and secondary destinations in the Philippines, under President Rodrigo Duterte’s build-build-build program.

Sydiongco told airline operators from all over North Asia and other countries that the Philippines is serious in making the country the premier gateway destination in Asia before the Duterte administration ends.

He reported that developments of airport facilities under what he described as “New Philippines” include two new airports that had been completed and one is still under-construction and one more will be built in the next few months.

The CAAP head mentioned the Philippines’ pride, the new Mactan International Airport-Terminal 2, the world’s friendliest airport and the first eco-airport in the Philippines Panglao International Airport, as just two of the facilities that reflect the Philippines readiness to host more international airlines and boost global connectivity.

“We are upgrading existing gateways—improved and rehabilitate 13 domestic airports,” he told summit delegates.

Sydiongco reported the modernized and upgraded airports in Busuanga, Palawan, Marinduque, Ormoc, Maasin, Virac, Clark and the plan of the government to make the Sangley Airport in Cavite as an alternate to the Ninoy Aquino International Airport (NAIA).

In coordination with the Department of Transportation (DOTr), the Philippines is not far from achieving its target to become the premier gateway destination in Asia.

Aside from expanding the local and international air gateways, Sydiongco also reported the government’s ongoing projects geared towards modernizing air traffic management systems, night flight capabilities, among other sophisticated air transportation support facilities.

Despite lacking the seat penetration rate of peers in other markets, with about 11 percent of seats within North Asia operated by LCCs compared with 56 percent in Southeast Asia and 40 percent in Western Europe, LCCs are beginning to flourish in the region.

The LCC model may now be well understood here, but the operating environment is increasingly complex, competitive and interconnected. Long haul low cost, full service airlines adding LCC subsidiaries and many other developments are high on the agenda.

The two-day LCCs in North Asia confab opened yesterday and will run until today to discuss the key challenges and strategic issues facing LCC operators in North Asia as they seek further opportunities for growth. (FREEMAN)