TIMELINESS
Earlier this year, there was much congestion at Ninoy Aquino International Airport (NAIA). This was due to tardy arrivals of incoming aircraft which did not use the slots made available to them. These slots were designed so that NAIA was busy but not congested. The late arrivals caused congestion which unfortunately created more lateness. This attracted the attention of the Department of Transportation (DOTr) which has since monitored the situation.
Consequently, in June and July, timekeeping improved. Both Philippine Airlines (PAL) and Cebu Pacific (CEB) had much better on-time performance (OTP). PAL had an OTP of 80 percent in June and 82 percent in the first two weeks of July. CEB’s corresponding OTPs were 60 percent and 77 percent respectively. OTP measures how often flight departs or arrives within 15 minutes of its schedule.
That OTP for both PAL and CEB has improved is much appreciated by travellers who are less discomfited than before.
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ROUTING
The potential volume of traffic, and hence viability, for any route is proportional to the product of the populations of the departure and arrival conurbations, and inversely proportional to the square of the distance between them. This relationship was first postulated by Sir Isaac Newton (1642-1727), well before the age of air travel.
On this basis, as air travel expands, there will be more journeys, especially international journeys, between provincial cities which may be profitable. Busan (Korea) to Iloilo or Bacolod, for example.
Therefore, we are looking to improve the facilities of provincial airports to accommodate this trend.
In June, Udenna Infrastructure Corp. made an unsolicited proposal and we hope there are positive discussions on this public-private partnership possibility. The airport needs a longer runway but there may be debate about what other facilities are required. If international flights are envisaged, then CIQ (customs, immigration, quarantine) infrastructure is necessary. Government cooperation may be problematic if there are, at least initially, not many international flights.
Meanwhile, the $15 billion (!) proposal from San Miguel Corporation (SMC) to build the New Manila International Airport has been approved by the government. We hope that the arrangements for connecting flights will be hassle-free so that businessmen can travel from Iloilo to Ho Chi Minh City, for example, without difficulty.
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PERSONNEL
PAL has been quick to appoint a new president and chief operating officer to replace Jaime Bautista who retired recently. He is Gilbert Santa Maria, a Filipino who has had a successful career in the United States.
PAL which made a loss in 2018, must be looking to Santa Maria to turn things around. Anecdotally, millennial friends compare CEB favorably with PAL in terms of ease and price flexibility of on-line booking. If this is true, then PAL would do well to look at this aspect in order to have higher occupancy rate.
We look to a vigorous competitive environment to enable Filipinos enjoy the benefits of contemporary air travel./PN
