Confused by announcements of June 1 flights? Here's what really went down

Image from My Boracay Guide

THE CIVIL Aeronautics Board (CAB) on Saturday stopped Philippine carriers from selling tickets for flights, which were supposed to commence on Monday, June 1, as the National Capital Region shifts to general community quarantine (GCQ) status. 

This developed as reports reached the Inter-Agency Task Force (IATF) about complaints from local government units (LGUs) saying they were not ready for commercial flights. Pioneering flag carrier Philippine Airlines had announced late Friday it would commence domestic and international flights on June 1.

An advisory signed on May 30, 2020 by CAB Executive Director Carmelo L. Arcilla, a copy of which was obtained by BusinessMirror, said, “Please be informed that the IATF has yet to approve the routes for domestic operations in the first week of June 2020. Consequently, airlines are hereby advised to cancel their flights on June 1, 2020 and to stop selling tickets for the said date.” 

The advisory was released at around 7 p.m., and sent to the CEOs and other executives of the Air Carriers Association of the Philippines, Air Juan Aviation Inc., Air Philippines Corp., Airswift Transport Inc., Cebu Pacific, Cebgo, Isla Aviation Inc., PAL, Philippines Air Asia, and SkyJet Airlines. 

Following the CAB advisory, PAL revised its plans, and announced on Saturday evening that its domestic flights would resume on June 8. Aviation sources intimated CAB had actually approved the flights for June 1, but failed to inform the IATF. CAB officials did not respond to text messages from this paper.

Meanwhile, Undersecretary for Tourism Regulation, Coordination, and Resource Generation Arturo P. Boncato Jr. said several provinces in the south requested for a postponement of commercial flights to prepare their airports and resorts for hosting of tourists. Among these are Siargao and Boracay. 

“The provincial government of Surigao del Norte would like to prepare for the reopening of Siargao especially dealing with incoming flights and reopening of resorts, etc. They are working on their protocols,” he said. The province has requested the IATF for a “suspension of regular airport operations up to August 31,” and discourages the entry of tourists, as per the LGU’s Executive Order 20-018 issued on May 30.

Boncato added, “The province of Aklan and LGU of Malay are also doing simulations and dry runs for reopening and have yOn et to announce a reopening date.” Malay hosts Boracay Island, dubbed one of the best beaches in the world. The island is building a Covid-19 laboratory, in anticipation of the tourist influx, said the DOT official. 

Other provinces which have also declined to reopen for tourism were Bohol and Baguio. These provinces have been placed under MECQ and as per IATF regulations, are allowed to resume tourism activities.

On Saturday, the CAB also reminded airlines that they are not allowed to accept passengers going for leisure activities in areas under GCQ.

In an advisory signed on May 29, 2020 by Arcilla, the agency said, “Under the Omnibus Guidelines on Community Quarantine, movement in areas under GCQ for leisure purposes shall not be allowed.”

It also prohibited the travel of “persons below 21 years old,” as well as senior citizens, along with which have “immunodeficiency, comorbidities, or other health risks, and pregnant [women].… For purposes of compliance, airlines shall vet or screen departing passengers to confirm that the travel is for non-leisure purposes.”

The advisory, released Saturday morning, also reminded carriers on health and safety protocols to be followed in airports and onboard their aircraft, to protect crew and passengers from the novel coronavirus.

On Friday, the DOT clarified on Friday that under GCQ, tourism and leisure-related activities were still prohibited. (See, “No hotel operations, leisure travel allowed under GCQ,” in the BusinessMirror, May 30, 2020.) 

*This was my original story submitted to the desk, before it got wrapped with another reporter's copy. 

On being Lucio Tan Jr.

LUCIO "BONG" TAN JR.

BACK in 2008, I had the distinct privilege of interviewing Lucio “Bong” Tan Jr. for a magazine for which I used to work. I must admit, I approached him with some trepidation; after all, his temper on the basketball hard court and on the golf green was almost legendary.

But it was a very subdued and polite Bong who sat down for the interview, surprising me with his amiability. He even displayed the same flashes of wit his father has been known for at certain times and among certain company. He poked fun at himself — jesting that he probably looked like his achi Vivienne, as a makeup artist went on to put some light lipstick on his face for a fashion shoot — and at his powerful taipan of a father (“I don’t wear white socks.”).

Bong was nurtured by his mother Carmen, his amah, and grew up with six sisters – Vivienne, Karlu, Rowena, Sheila and Jesslyn – Bong being the fifth among the siblings. (He was father to Lucio Tan III called Hun-Hun, now 27, and Kyle, 23, his sons with the former Julie Chen, a Taiwanese-American.)

The family home

Bong grew up in the family home along Biak-na-Bato St. in Quezon City. From the outside, the property looks unremarkable except that it occupies an entire block spanning from Maria Clara St. and Dapitan St., in Sta. Mesa Heights, and has a helipad. I joked that we were practically neighbors as I grew up in the same area as well.

But it was a good place in the 1960s and 1970s to bring up one’s children especially if one were just starting a family. This was where many Manila-based Chinese-Filipino families flocked to after the Ruby Tower collapsed in 1968.

Bong said his father “trained” him and his siblings “not to splurge.” He remembered receiving a meager allowance when he went to college at the University of California in Davis, so he had to work two jobs, like his American classmates — as a gym manager and a basketball coach — just so he had enough money to spend for his needs.

Until his move to California, he also led a very “spartan life” from 1984 and 1986, as he studied at the Beijing University in China to deepen his appreciation of the native language and culture. “There was no McDonald’s yet then,” Bong recalls, but he said it was the best time to be in China. “It was actually the last chance to learn the culture before it opened up. I went back, now it’s so different. I’m still lucky that I went also during that time, under the old China, to study history and the language.”

His sense of fashion

At this interview, Bong is just wearing a powder blue shirt jack over dark pants, the kind popularized by a certain, ahem, strongman in the '70s. “I started wearing it 10 years ago, and now a lot of corporates are wearing it.” 

Asked if he liked men’s wear from Prada or Hugo Boss, he says: “Believe it or not, I also go for sales, and sometimes I give it (my shirt) away, when people like it. If it’s Hugo Boss how can you give it away?” he laughs. (Ironically, for the fashion shoot, he is dressed up in a navy blue Hugo Boss suit, which fits him rather well, although he did display some self-consciousness as the photographer flashed away. Bong does wear business suits when the occasion calls for it, but for casual wear, he uses athletic shorts, a T-shirt and sneakers when going to the mall.)

Although not really fond of luxury brands, Bong told me, “I like fresh-looking clothes,” and readily admitted to reading male fashion magazines like GQ.  “I like wearing clothes that nobody has seen yet. But I’m not brand-conscious.”

But yes, Bong says it’s not been easy carrying the name of his  namesake father, who by a recent account in Forbes, is worth $3.3 billion. As the only male in his father’s first family, he had been bruited to be the one to take over from his father, someday. (Just last October 28, he was appointed president of PAL Holdings Inc., the listed firm that owns and operates the flag carrier Philippine Airlines, aside from being vice chair already of the PAL board. He also sat on the board of the LT Group Inc. and held positions in other Tan-owned companies like Asia Brewery Inc., Eton Properties Philippines Inc., Tanduay Distillers Inc.)

“I feel pressured of course, and also it’s challenging. It is a challenge to put in practice all that you learned right?” Bong remarked. He was supposed to work in a bank after graduating in 1991 from UC Davis with a civil engineering degree, “But my Dad told me to come back [to Manila] already.”

A taste of tobacco

His first job at Fortune Tobacco Corp., was as a tobacco leaf inspector, which he described as “hell! It was so hot in the warehouse, I had to inspect all the tobacco deliveries to check if they were the right grades. I had to change my shirts at least four times a day. And that was free ha! I had no salary, parang OJT (on-the-job training).” When the tobacco season was over, he was moved around different divisions to learn up close the operations of the cigarette company.

As a manager, Bong described himself as “approachable, everyone can call me up, text me on my cell, they know I will answer unless I have a game or in a meeting.” (Indeed he was quite accessible even to media. Bong was one of the very few PAL officials who would go on record for interviews, and respond to my text messages.)

He said anyone could go to him if there were problems in the company. “I’m a guy who has to listen to both sides [of an argument]. I will always ask, ‘Okay who’s the other party?’ but I will not tell him that I will call the other side. I will say I will think about it then I call the other side. If I can settle it,  okay, if not, I consult an expert on the issue. If it’s just a small matter, I just tell the one who complained to me, ‘ibigay mo na [let it go]’.”

The succession plan

But Bong stressed even then, the succession issue in the family is not actively talked about, even as some media reports point to him as the heir apparent. Unlike other Chinoy business families, like Henry Sy Sr., John Gokongwei, George Ty, Andrew Gotianun and those of other taipans, his father has not publicly anointed anyone as his successor.

I asked Bong then about his main “rival” as heir-apparent, his half-brother Michael, who is older than him by just three months, and also holds major positions in their father’s businesses. (Few people know that Bong and Mike were actually good friends, despite being pitted against each other since birth. I am told that the Mike  had visited Bong at the ICU, and has been at the latter’s wake every night. “He is deeply affected” by his brother’s passing, said a source.)

But Bong is obviously uncomfortable discussing the issue. He leaned into me as his voice drops a tad lower, as if not wanting to let anybody hear his answers. He knows he can’t evade my questions, yet respectfully answered them without giving too many clues.“We never talk about it,” Bong stressed, adding that no one is really sure who’s going to take over from his father, if and when, the latter retires. Now at 85, Kapitan continues to attend board meetings and manages his businesses through a few trusted lieutenants.

“We have a different plan,” Bong underscored during our chat then. “We have a different system in choosing an heir apparent, whoever is more deserving.” Pressed to explain what that meant, he merely said, “It will be someone whom people will be comfortable with.”

(Our heartfelt condolences to the Tan family, friends of Bong, and his staff.)

*Originally published in the Asian Dragon, edited for brevity, and updated to include current events.

Let's go on a vacation!

PAL Valentine Promo
(Press release)

Dontcha just love the low travel season?

THIS is the time of the year when travelers can take advantage of low airfares and hotel/resorts promotions all over the country. It's great if you have tons of cash to spend on vacations abroad, but if not, this is the best time of the year to go around the country.

(Cebu's Hilutungan Channel from the beach of Microtel Mactan.)
Because of my profession as a journalist, and when I was working for the government in the 1980s, I have been fortunate enough to travel around the Philippines. By God, if you haven't seen the Philippine countryside just yet, you are missing out on a lifetime experience! A beautiful sunset seen from the white beach of Boracay, the massive limestone cliffs in Palawan, the clear blue waters of Cebu, the comforting Christmasy smell of the pine trees in Baguio, looking eye-to-eye with ostriches in Davao, and driving through the lush rolling hills of Batanes --- these are just some of the awe-inspiring sites to behold and experience when traveling through the Philippines. None of these can compare to just another shopping trip abroad. Besides, you can bring the entire family to enjoy the experience.

So in the words of Susan Calo-Medina, "Wag maging dayuhan sa sariling bayan! (Don't be a stranger in your own land.)"

* * * *
Here are just some of the great travel promos currently being offered:

From PAL: "Seat-All-You-Can" – now benefits even passengers of PAL Express, with fares as low as P688. The latest round of low-fare tickets on 26 domestic destinations is on sale from July 22 to 27, for travel between August 16 and December 15, 2009.

PAL's all-jet, full-service domestic flights are priced as low as P888 on one-way economy tickets from Manila to Bacolod, Cebu, Dumaguete, Iloilo, Kalibo, Laoag, Legazpi, Puerto Princesa, Roxas, Tacloban or Tagbilaran. One-way economy tickets to Butuan, Cagayan de Oro, Cotabato, Davao, Dipolog, General Santos, Ozamiz and Zamboanga are only P1,888. (For more inquiries, go to PAL's web site or call tel. no. 855-8888, in Cebu (032) 340-0191, and in Davao (082) 222-0366.

Discovery Shores in Boracay is offering The Great Luxurious Getaway Package w/c allows guests to enjoy a glorious three-day, two-night accommodation, a calming Mandala Spa Qi Massage, a daily sumptuous breakfast, plus one Chef’s Dinner at Sands Restaurant as well!

Rates start at P16,888 net per person, based on triple occupancy in a Junior Suite. The package is inclusive of roundtrip airfare, boat and land transfers. The promo is valid until Oct. 31, 2009. For details, call (63 2) 720.8888 / 683.8227 / 683.8236 to 38.

SEAIR offers fares from Manila to Boracay for as low as P350 per way all-in and other low fares are available online for booking and travel up to October 15, 2009. It's the only airline that flies direct to Caticlan, the gateway to Boracay. It has just relaunched its Cebu-Caticlan service.

Seair passengers enjoy complimentary transfers from Caticlan airport to Boracay and vice versa, shortest queues and check-in procedures at the airport, fastest baggage claim, privileges for their boarding pass in partner establishments in Boracay and Manila, and ‘35 minutes’ fastest flights to Boracay. These low fares are available via the airline's web site.

Microtel Grand Resorts Mactan's "Leisure Within Reach" promo offers guest P2,900 net w/ breakfast or P2,500 net room only, until September 2009. Choose from fun activities like jet-skiing, banana boat ride and island-hopping capped off with a soothing massage in the privacy of your own room. What’s more, all rooms at the Microtel are equipped with a chiropractic-approved bed that would surely leave your backs happy.

For reservations and inquiries please contact 032-236-8888 or email mactan.rsvn@microtel.ph

(via press releases)

Caticlan monopoly may ease Seair’s revenue losses

So despite the drop in passenger traffic in the first five months of the year, Zapanta said its revenues only dipped by 18 percent. “At the onset of 2009, while the other airlines continued to bleed, Seair has stopped the bleeding. We are happy to even have just a slim margin for the whole, but with the new development in Caticlan, we will have to revisit the plans for the rest of the year.” (Click Caticlan monopoly for the rest.)

(Blogger's note: In the statement, "Lean, mean and small is our aim through the current business climate we are experiencing, and awaiting opportunities as they come to assess how we move," the quote was attributed by our editor to Seair president Avelino Zapanta, but actually it was said by Seair co-founder and director Nikos Gitsis. Apologies to both gentlemen.)

(Boracay-bound passengers board a Seair DO-328 for a flight to Caticlan.)

Boracay guests rue longer travel time, shorter vacation

THE new runway configuration implemented at the Caticlan Airport in Aklan is already reaping some opposition from resort owners on Boracay Island.

The Department of Tourism (DOT) has promised to look into concerns of tourists to the resort island famous the world over for its long white beach.

In an e-mail, Nenette Graf, owner of Boracay Beach Resort and former president of the Boracay Foundation Inc., the association of resort owners on the island, said: “Our guests are starting to complain because their vacation is now short of half a day because of the travel time to Kalibo.”

As president of the Boracay Windsport Association, Graf said the Civil Aviation Authority of the Philippines (CAAP) rule particularly impacts on those guests coming from Hong Kong on the weekend to windsurf and kitesurf during the current habagat (southwest monsoon) season.

(Photo from Boracay-budgettravel-tips)
“Before, they can still enjoy three hours of kiting before sunset on their first day, or windsurfing if they leave Hong Kong in the morning. Now it is not possible with three to four hours travel time from Manila to Boracay, or more if domestic flights are delayed. Like [yesterday], the guests arrived in Manila at 11:30 a.m. and [were] supposed to fly at 1:30 p.m. to Caticlan with Cebu Pacific, only to be told that their flight is diverted to Kalibo, and the flight will be delayed by an hour-and-a-half. They arrived at 6:30 p.m. in the resort. They traveled for one day and they will go back on Monday via Kalibo again. They complained, and were given a free ticket valid for one year, but I doubt if they will come for the weekend again,” she explained.

Usually, if traveling to Manila via Caticlan, say on a 12 p.m. flight, passengers only have to check out of their resorts and leave Boracay by 10:45 a.m. to make the flight. If traveling via Kalibo, however, guests have to make sure they leave Boracay by 8 a.m.

Edd Fuentes, owner of the Sun Villa resorts also said his guests have been complaining of the inconvenience of traveling via Kalibo. “They’ve been so used to landing in Caticlan which is so near Boracay, just 15 minutes away by boat. They think Kalibo is too far, and now that’s it’s raining, the travel time is slower and longer.”

He added that the problem is even if his guests want to transfer to Seair, which is the only carrier flying to Caticlan, they’re unable to do so “because its flights are limited, considering it’s the low season. I, too have been trying to get a booking with Seair for my trip this Saturday and I’ve been told that all flights are already fully booked. So my guests may not have a choice but to still fly via Kalibo.”

Guests have also started complaining of the confusion in the major carriers’ check-in procedures owing to their pullout from Caticlan.

Gina Policarpio, a housewife on the PAL Express PR 324 return flight to Manila on Monday back to Manila told BusinessMirror that her family was told by the carrier to check into Caticlan “and we will just pick up our bags in Manila. They even told us not to worry about it.”

But when their group arrived in Kalibo, she said the PAL Express counter told them to get their bags and check these again at the counter. “Why were we told to check in Caticlan if we will check in again at Kalibo anyway? Ang gulo nila.”

Meanwhile, Tourism Secretary Joseph “Ace” Durano expressed concern over the new CAAP ruling on Caticlan’s runway configuration. He promised to look into ways for the Boracay guests to keep flying into Caticlan without compromising their safety.

(The 70-km road from Kalibo, right, to Caticlan. Photo from Travelsmart.net)
The CAAP’s ruling effectively shortened the takeoff and landing distance for planes in Caticlan, forcing major carriers like Philippine Airlines and Cebu Pacific to cancel their routes there. They now fly Boracay guests via Kalibo and are currently footing the costs of transferring passengers to Caticlan. Only Southeast Asian Airlines continues to fly to Caticlan.

In a text message over the weekend, Durano told the BusinessMirror: “We are studying alternative policies now that we can propose to CAAP, policies that ensure safety of flights to and from Caticlan without unnecessarily hampering passenger traffic.”

He declined to disclose what these alternatives are pending their finalization.

Department of Tourism Western Visayas Director Edwin Trompeta earlier expressed confidence that Boracay would still see continued strong tourist arrivals despite the pullout of major carriers from Caticlan.

“There is no major impact because the number of flights of these airlines to Kalibo are the same number of flights before the CAAP measures were imposed.”

In the first half of the year, tourist arrivals in Boracay grew by 6 percent to 383,313 from the 362,228 registered in the same period in 2008.

Since Zest Air’s second accident on June 25 involving its China-made MA60 plane—the first accident being in January 2009—the CAAP had decided to reassess the runway configuration and landing/takeoff procedures at the Caticlan Airport.

Most analysts noted that due to the larger size of their planes, PAL, Cebu Pacific and Zest Air are unable to fly into Caticlan with the shorter runway, especially during the southwest monsoon, when an aircraft is buffeted by strong winds.

Most airlines agree that the permanent solution to the Caticlan Airport is to extend the runway.

In 2007 officials of CEB, then Asian Spirit, and PAL had already discussed funding the runway extension, but nothing came out of it.

On June 22 the Department of Transportation and Communications signed a build-operate-and-transfer (BOT) agreement with a consortium led by McDonald’s Philippines franchise holder George Yang which would upgrade the Caticlan Airport to international standards.

The improvement of the airport, projected to cost some P2.5 billion, will be shouldered entirely by the Caticlan International Airport Development Corp.

Under the terms of the BOT, the company has up to seven years to build and expand the airport, and 25 years to operate the facilities, before it is eventually turned over to the government.

The upgrade includes the extension of the runways, which would allow larger planes to use the airport.

Attached to the project is a commercial component allowing Akean Resorts Corp., owned by investors led by Francisco Alba, former ambassador to the Vatican, to develop the 16-hectare area beside the Caticlan terminal into a hub for hotels, resorts and shops. “Akean” is the old name of Aklan.

The government allows investors in pioneering tourism projects to avail themselves of duty-free importation of capital equipment and income-tax holidays up to five years.

The upgrade of the Caticlan airport has been dubbed as the first-ever privatization of an airport in the country.

(Blogger's Note: This is the unabridged version of my story on how Boracay guests are reacting to the new runway configuration in Caticlan. The original was published in BusinessMirror's Perspective, July 14, 2009.)

Cebu Pac cancels Caticlan route*

(Kiteboarding in Boracay during the habagat season)
THE Department of Tourism sees tourist arrivals in Boracay to remain strong despite the pullout of major carriers from the Caticlan airport.

This developed as Cebu Pacific (CEB), the aviation concern of the Gokongwei-led JG Summit Holdings Inc., has confirmed that it too had withdrawn from its Caticlan route as of Thursday morning.

This is a result of a new order by the recently-formed Civil Aviation Authority of the Philippines, implementing a long-ignored rule on “one runway-take off, one runway-landing” procedure in the main runway of said provincial airport, effectively shortening the runway maneuverability of most carriers.

In a press statement released at 1:15 p.m. Thursday, CEB president Lance Gokongwei said: “CAAP has designated Caticlan, for the time being, as a one-way airport for all carriers: takeoff should be towards the sea and landing in the opposite direction. A technical re-definition also in effect shortens the runway, despite its actual length.

“We have therefore decided to divert all Caticlan flights to Kalibo instead and from there bus all our Boracay-bound passengers [to Caticlan] at no extra cost,” he added.

While CEB spokesman RG Orense told this reporter Wednesday night that the carrier’s first two flights on Thursday would land in Caticlan as scheduled, apparently these two were also diverted to Kalibo. “[Both flights] landed in Kalibo. The instructions [to the pilots] were given early [yesterday morning],” Orense said.

The carrier said more than 60,000 booked passengers will be affected by the cancellation of its Caticlan route.

(Cebu Pacific President and CEO Lance Gokongwei)

Caticlan is the gateway to the resort island of Boracay, considered a “bread-and-butter” route in terms of domestic destinations by most major carriers.

Yesterday, Philippine Airlines also pulled its Caticlan flights and transferred them to Kalibo. In the meantime, PAL said it will shoulder the land-transfer expense of passengers who had booked Caticlan flights. But Francisco Yngente, vice president for airport services said the cost of the transfer, however, will already be tucked into the cost of the PAL ticket in future bookings.

Passengers interviewed by this reporter who originally booked their flights to Caticlan and flew Thursday morning said PAL customer service called them Wednesday afternoon, informing them of the switch in the landing destination.

Nikka A. Policarpio, a marketing consultant, who rode PR 037 which left Manila at 6:10 a.m. Thursday, said “our transfer was organized. We were provided a Starex van to ferry us to Caticlan from Kalibo. And the trip was alright, short, about an hour-and-a-half only.”

As a result of the CAAP order, only Southeast Asian Airlines, because of the smaller size of its planes, will be able to fly into Caticlan.

The Caticlan airport’s new runway configuration was announced Wednesday in a meeting between CAAP and the three major carriers – PAL, CEB, and Seair.

Sources said Zest Airways, whose plane overshot the Caticlan runway on June 25 and caused the CAAP to review the airport procedures, did not attend the meeting which adjourned at 4 p.m. Since its June 25 accident, the second since January when its plane undershot the runway, Zest Air already closed its Caticlan route.

Meanwhile, Edwin Trompeta, regional director of the DOT region 6 (Western Visayas) expressed confidence that the pullout of the carriers from Caticlan will not affect tourist arrivals in Boracay. “There is no major impact because the number of flights to Kalibo of these airlines are the same number of flights before the CAAP measures were imposed.”

But he admitted that some passengers may be “inconvenienced” because the land trip from Kalibo to Caticlan take an hour and half, before the 15-minute pump boat ride from the Caticlan jetty port to Boracay. “Plus it could add up to the cost of the airfare and their tour package because of the transfers,” he said.

Trompeta said ultimately, the diversion of the flights to Kalibo by these major carriers, “will be good for our visitors because we’re concerned for their safety. These carriers are now using bigger aircraft and considering the length of the runway and it now being habagat (southwest monsoon) season where winds from the southwest are coming in, we’re a little bit concerned with the safety of the passengers.”

The tourism official intimated that the CAAP measure “could be temporary” until the amihan season (northeast winds) starts in October. The amihan season usually last until May or June, allowing the carriers to use runway 06, which is the approach from the sea. “I think this is a temporary arrangement. But the final decision is with the CAAP.” At present, all carriers have been using runway 24.

Still, he explained that even before the CAAP ruling, “those planes were not filled to capacity [because of the difficulty in the landing and takeoff considering the short runway]. Most of them incurred penalties for not loading their planes.”

According to data from the DOT, tourist arrivals in Boracay in the first half of 2009, grew by 6 percent to 383,313 from the 362,228 registered in the same period in 2008.

Trompeta said the bulk of the tourists continue to be Filipinos, accounting for 71 percent or 271,498 of total arrivals, while foreigners numbered 96,102. Balikbayans or returning Filipinos totaled 16,213.

(The pristine white sands of Boracay make it one of the best beaches in the world according to international travel magazines.)

Of the foreigners, arrivals from Korea were the largest at 34,818 in the six-month period; followed by China at 11,584; Taiwan at 8,074; and Americans at 7,130.

Total tourism receipts for the period reached P7.06 billion.

The DOT official said Boracay tourism arrivals continue to be “strong” despite the global economic crisis and the (A)H1N1 global flu outbreak. Before the H1N1 outbreak, DOT projected tourist arrivals in the island to increase by 10 percent to 697,799 from the 2008 arrivals of 634,363. Last year, the island brought in total tourism receipts amounting to P11.66 billion.

In a press statement, CEB president Gokongwei said: “We continue to work closely with our industry partner, the CAAP, to find a speedy resolution, to these airport issues, to allow Cebu Pacific to re-instate flights to Caticlan.

He added that Boracay continues to be one of the country’s most important tourism destinations. “CEB’s low fare service has been integral to the growth and development of the island’s tourism industry and has increased its accessibility to both local and foreign tourists.”

CEB said it has been operating direct flights to Caticlan since February 29, 2008 and has since carried “over 340,000 passengers.” Its schedule, especially during the peak summer season, reached as high as 15 round-trip flights daily to Caticlan.

(*This was my original piece for BusinessMirror but due to space constraints, was folded in a general story on the issue along with other reporters' stories.)

Carriers pull out of Caticlan

"STARTING Thursday (July 9, 2009), major carriers are expected to discontinue flights to Caticlan, the gateway to the resort island of Boracay, in anticipation of a government order aimed at implementing a long-ignored rule on a one-takeoff and one-landing procedure.

Sources who attended a hearing between airlines and the Civil Aviation Authority of the Philippines (CAAP) on Wednesday said the new order will virtually leave only one carrier, Southeast Asian Airlines, plying the route." (Click here for the rest of the story. Apologies for the alarmist headline in the paper. Thanks!)

(Only Seair will be left flying to Caticlan, giving it a virtual monopoly over schedules and airfares. Let's pray it doesn't take advantage of the situation and unnecessarily jack up its airfares.)

Airlines respond to growing demand for online bookings

ALL over the world, major international airlines are responding to the growing demand for customers booking and paying for their tickets via the Internet, and are, thus, beefing up their online-transaction capabilities by redesigning and offering promotions on their respective web sites.

All representatives of airlines interviewed for this piece—Philippine Airlines, Singapore Airlines, Emirates Airlines and Northwest Airlines— also predict stronger growth in Internet bookings, especially in Asia and the Pacific as computer penetration and usage rise.

Todd Anderson, director for marketing and distribution of the Minneapolis-based Northwest Airlines, said in a telephone interview that for Asia-Pacific, the reservations made via its web site (http://www.nwa.com) “generally vary by market and by country…between 2 percent and 35 percent [with Singapore on the higher end of the scale]” accounting for total bookings by the airline. The rest of the bookings are made via travel agents and general service agents (i.e. accredited ticket agents).

(Click here for the rest.)

Travel news: Bye, bye Palau

(I now wish I had pursued our gang's plan to visit Palau again this year. Sad to see the Asian Spirit flight go which was really a very convenient way, not to mention cheaper way, for tourists to to travel to Palau. My report on this development below:)

Asian Spirit drops Koror flights — again — for now
Marianas Business Journal, Oct. 15, 2007

Rainbows are commonplace in Palau. The rock island across my hotel room balcony during my visit to Palau in 2006.

MANILA, Philippines — After relaunching the route in May, Asian Spirit will be dropping its flights from Koror to Cebu, effective Monday, Nov. 5.

In a phone interview, Jack Po, executive vice president of Asian Spirit; told the Journal, “While it saddens me to confirm this, yes, we are suspending our flights because of the realignment in our business plans. There are increasing demands by passengers in the Philippines for flights to our key service areas such as Caticlan, Aklan, which we have to meet. However, we hope to return to Koror soon when conditions are more ideal.”

Asian Spirit, he said, is preparing to “engage in a major battle” with the larger-capitalized airlines in the Philippines, which are going to fly to Caticlan, the gateway to Boracay Island, Aklan. “We want to focus on our turf, which we had developed when no one was flying to the destination yet.” The Manila-Caticlan service is often called the “bread and butter” route of Asian Spirit, which helps subsidize its flights to 15 other destinations. The other destinations are considered vital in terms of public welfare but are typically low revenue earners for the airline because of unstable passenger loads.

The news of the suspension caught most tourism-related companies in Palau by surprise. It was only in September that Asian Spirit hosted a familiarization tour in Cebu for Palau government officials, businessmen and media.

Reacting to the development, Sam Scott, president of Palau Sea Ventures Inc. and Sam’s Tours; said, “This is very sad and unfortunate news that is very disappointing, to say the least. Sam’s Tours has been working very hard with [Asian Spirit] and hosted many [familiarization tours], including the most recent one from Cebu.” On June 16, Sam’s Tours co-hosted a familiarization tour with the airline and other Palau tourism and business groups for about 60 visitors from Cebu, which included dive center owners, travel agents, media, airline staff, business delegates and other dignitaries.

“The repercussions will be enormous and the tourism industry as a whole in Palau will suffer for some time. I can only hope that we will have a chance to see Asian Spirit back in the skies soon,” Scott said. He added that the airline “indicated [the flight’s suspension] was due to maintenance, but I have a hard time believing that when they indicated no start-back-up date.”

Interviewed in Manila, Surangel Samuel Whipps Jr., whose family co-owns Palau Micronesia Air — Asian Spirit’s partner in Koror — told the Journal, “You know, Asian Spirit has been very good to Palau. They’ve been able to provide competition [for other carriers] which is good for Palau because there have been a lot of visitors. Unfortunately, the number of people traveling [the Cebu-Koror route] was not enough. So we’re looking at how to market it. Maybe it was our fault — the marketing was not ready for Cebu. We expected more people, but the tourism connections were not there yet.” The Whipps family’s Surangel & Sons acted as the general service agent for the Philippine carrier.

Palauans welcomed the entry of Asian Spirit in Koror because it helped bring down the cost of airfare to the Philippines, where a number of them have business dealings, go shopping, and receive medical treatment. Roundtrip fare from Koror to Cebu cost $330 per person, the same rate now offered by Continental Air Micronesia, which flies Koror to Manila. When it was the only airline serving the Koror-Manila route, Continental’s airfare reached as high as $600 per person especially during holidays. “I just checked with Continental because we wanted to come here in December and their rate’s already $510,” Whipps said. “It’s interesting what Continental will do now that they have their monopoly back,” he added.

The Palau businessman said for now, there are no plans for PMAir to hook up with other international carriers serving the Pacific, such as Virgin Blue and Pacific Blue, of British tycoon Richard Branson, president of Virgin Blue Holdings Ltd. “We’re always open to other options, but Asian Spirit was willing to take a risk to fly to Palau. They said this was not the end. They just need to refocus and they will be back.”

Sam Scott of Palau Sea Ventures Inc. expresses disappointment over suspension of Asian Spirit's service in Koror. (Photo by Peter Marquez)

Sam’s Tours, together with other members of the Philippine-Micronesia Alliance, had expressed optimism about the three times weekly Koror-Cebu-Koror flights because it would boost the group’s chances of marketing the Philippines and Palau as scuba diving destinations to more Asian markets. The tour agency had barely recovered from the cancellation of the Davao-Koror service of the airline, but Scott said in September, “We are very excited about the Cebu-Palau route of Asian Spirit.... This will definitely be a big winner for us here in Palau.”

Whipps added the Koror-Cebu route had “a lot of potential. Palau was going to tie up with Cebu Doctors Hospital and two other hospitals in Cebu. It’s much closer and with the flight frequencies, it would’ve been better for our patients. Also there were a lot of business opportunities...people are so used to coming to Manila, they don’t think of Cebu. As one Cebu businessman told me, the minute you step out of the plane, you don’t need to go to Manila anymore because you can find everything in Cebu.” Cebu is the second major urban destination in the country after Manila, the capital.

For its part, Asian Spirit is expected to go head-to-head with larger and more profitable airlines to protect its Caticlan route. Air Philippines, the budget carrier of Filipino-Chinese tycoon Lucio Tan, who also owns Philippine Airlines, will be flying to Caticlan by Dec. 15 using three to six Bombardier Q300 50-seater turboprops; Cebu Pacific, owned by JG Summit Holdings Inc., of food and beverage magnate John Gokongwei, will be flying to Caticlan by February 2008 using two Avions de Transport Regional 72-500s turboprops initially, gradually increasing to 14 by 2013.

Asian Spirit plans to bring in two more British Aerospace 146-100s, which are 86-seaters, to increase their jet service to Caticlan to 16 flights a day from the current six. Along with its turboprop service, the flights are expected to rise to as many as 25 a day during the peak seasons of summer and Christmas. MBJ

PAL to upgrade B747s

By Ma. Stella F. Arnaldo
BusinessMirror July 5, 2007

I’VE always loved traveling business class, especially on long-haul flights that require a great amount of leg room to stretch your limbs so your blood doesn’t stop circulating to your lower extremities, offering me a more restful flight. Of course, the wider choices in in-house entertainment, as well as fine cuisine and wines, provide a definite boost to one’s morale when you’re 35,000 feet up in the air, and outside your window is a sea of blackness as far as the eye can see.

At the turn of the millennium, a number of air carriers in Asia also started improving their services in the coach class, giving economy passengers a taste of privileges once held by only those who could afford the upscale cabin classes. While seating may still be tighter, the discomfort is more than made up by sumptuous dishes and a wide array of in-house entertainment just a click away.

So I’m glad to hear that after slowly paring down its debts and boosting its finances back into black, flag carrier Philippine Airlines is now focusing on giving its passengers a comfortable lifestyle whether they are booked on business or economy class.

In a recent lunch tête-à-tête with a select group of reporters, PAL president Jaime “Jimmy” Bautista told us that the airline will be spending close to $50 million to reconfigure its four Boeing 747-400s beginning next year. “We will be eliminating the first class section and expand the business and economy sections.”

Wow! I thought, this can only mean more space for jetsetting travelers on PAL’s international routes. Jimmy, in between forkfuls of new divinely inspired creations of Gaita Fores at Pepato, told us that the airline is just following the global trend of concentrating more on the business traveler which, as a group, is on the rise. While no local statistics are available, according to a paper last year on tourism megatrends in East Asia and the Pacific by the World Tourism Organization, business travel is now the fourth-ranked reason for travel in the region.

(This is how a cocoon-type lie-flat seat looks like.)

He further disclosed that business travelers will no longer have to endure stiff backs as the airline will be installing new “cocoon-type” seats, which can not only give passengers individual privacy but also recline “flat like a bed.” While most cocoon seats are not the most aesthetically pleasing in terms of design and may make you feel like being half-enclosed in a fiberglass or plastic environment, it may lessen the chances of you being bothered by the chatty smelly old gent beside you while you’re trying to relax on a long-haul flight. Trust me. (This reminds me of a trip on a carrier bound for the Middle East a few years back, which its press releases always claim as having received recognition as the best international airline every year by some award-giving body. To my shock and disbelief, its business class felt like traveling in coach of an ordinary airline! Can you say bad food and stiff neck? Ugh.)

What is even more welcome news is that with the reconfiguration, travelers in PAL’s Fiesta class no longer have to suffer cramped positions as they will now have more room to maneuver and relax in their snug seats. “We will also put in individual entertainment audio-video screens with on-demand movies, taped television shows and video games,” says Jimmy about what’s commonly known in the airline industry as AVOD (audio-video on demand). The same screens, of course, will also be installed in what will be an enhanced Mabuhay class.

So as far as the multimillion-dollar reconfiguration goes, the business class located at the 747’s bubble top will soon have 42 seats, compared with the current, and likely extend to the front of the plane where the first class section is now located. The economy class will still have 383 seats but, as Jimmy says, offer more comfortable seating and entertainment features. Now that makes all the difference if you’re on a nonstop 12-hour flight to San Francisco. Isn’t that just a fabulous way to fly?

The reconfiguration is scheduled to start during PAL’s lean season, at the same time the planes are undergoing their regular six-year D-check involving heavy maintenance and overhaul. By 2009, the reconfigured B747 cabins will be unveiled to what I expect would be a very eager traveling public.

This dovetails with the projected delivery by the third quarter of 2009 of the airline’s brand-new Boeing 777-300 extended range fleet, about six of them I’m told, to last until 2011. When these babies arrive, they will already be installed with the latest in inflight entertainment features and state-of-the-arts seats, giving passengers a very pleasant flight. And with its ever-smiling and affable flight attendants, each flight onboard PAL promises to be a treat especially for world-weary travelers like myself.

Personal Fortune: Back Onboard

PLUCKED FROM RETIREMENT, SEAIR CHIEF AVELINO ZAPANTA IS READY TO FLY AGAIN

By Ma. Stella F. Arnaldo
Special to BusinessMirror

MY favorite memory of Avelino L. Zapanta, recently appointed president and chief executive officer of Southeast Asian Airlines or Seair, took place in Guam. He was still Philippine Airlines (PAL) president then, dressed casually in shorts and a shirt, sneakers, and leaning on the side of our tourist bus, which had broken down while touring the island.

We were a gangly bunch of catty journalists on a familiarization tour as part of PAL’s reinstatement of its service to the island. Despite the heat and long time it took for us to get picked up by another bus, we were hardly irritated as “ALZ” went around, entertaining us with his stories, and gamely posing for photos with us.

It is exactly Zapanta’s personal touch, or people skills, that helped him implement massive cost-cutting measures meant to keep PAL afloat. It was a time when relations between labor and management were strained. Groaning under a weight of debt, which ballooned due to the Asian financial crisis in 1997, as well as a pilots’ strike, PAL briefly shut down in September 1998.

Appointed president in 1999, he oversaw the rehabilitation of the flag carrier, which finally broke even in March 2000 for the first time in six years. Zapanta retired in August 2004 confident that the airline was in better shape to carry out its refleeting and expansion.

In the two years he had been away from the limelight, Zapanta wrote a book on the airline industry, 100 Years of Philippine Aviation, and is currently working on another book on the same topic, this time with a global perspective, for publication hopefully by next year.

He has also been teaching airline management classes at the University of the Philippines Asian Institute of Tourism and the Philippine State College of Aeronautics three times a week, his students benefiting from his real-life experiences of working in the industry for 40 years. (He joined PAL in 1966, but worked also at Pacific East Asian Cargo for a time. “Seair is actually my third airline already,” he says.)

The respite gave him more time to spend with his wife of over 43 years, Nicole Lavides, his six grown-up children (Titus, Tugaris, John Rado, Avelino Jr., Ma. Salome, and Ma. Silvana), and his caboodle of 13 “beautiful, handsome, pretty, nice and sweet” grandchildren—which begs the question, why leave the comforts of retirement?

Over a hearty Japanese dinner, we had a freewheeling conversation with Zapanta, who discussed his return to where “the action” is, Seair’s expansion, several aviation issues, and on being—gasp!— a videoke king.

What made you return to the industry?

Of course, I thought the pace of life I’d create when I retired was something I would very much desire. And indeed it was a very easy way of life, out of the rat race and all, not knowing after two years, I kind of missed the action. Because at this age, in almost perfect health, and with the [airline] industry growing, multiplying in leaps and bounds, I was kind of attracted to go back. Fortunately here is Seair on the verge of expansion. And they were looking for an honest-to-goodness president for the airline and so somehow, a headhunter got to me, and I readily accepted it.

Did your family support your decision?

All the way! Perhaps they saw that I was kind of missing the action. Sila mismo naninibago na. They were used to my being out of the house all day ’til evening. Then after retirement, every day I was just at home writing. And then I would be with them at meal times.

Did you ask permission from PAL chairman Lucio Tan before accepting the job at Seair?

No, only from Jimmy [Bautista, PAL president], because I was a consultant of PAL until last month so I had to tell him. As a matter of fact, when I submitted my biodata to the headhunter, I told Jimmy: “There’s a likelihood I might be taken in by another local airline.” I needed to be back in action and obviously I cannot go back to PAL. He said, “Okay lang, pare, ayos lang.” Kumpare ko naman si Jimmy.

I can’t say for sure what Mr. Tan feels, but I think it’s okay. Our routes are different from one another. We don’t duplicate a single air service of Philippine Airlines today, but I cannot tell for the next month and the month after.

Whoa! PAL watch out? What particular experience are you going to bring from PAL that will be useful in Seair?

Everything. All my 38 years of experience. The experience I’ve had will be useful at this particular stage in Seair’s growth. The challenge is how I can help convert Seair into a major player in the industry.

I think it’s going to work out well because all I have to do is to work with Iren [Dornier, Seair founder] and Nikos [Gitsis, cofounder], and they’re both good and very nice guys. Wala akong problema.

What steps are you going to take to become a major market player?

We will be coming up with specific brand products that Seair will eventually market out there. Of course, the current operation is a very successful product brand…these are leisure air sectors that are being operated to the most exotic tourist destinations. We fly to Baler [Aurora]; Clark; Manila; Busuanga, Taytay, Puerto Princesa, El Nido, Cuyo islands—five points in Palawan—and Camiguin. I haven’t even been to some of those places! From Cebu, we fly to Cotobato City, Zamboanga City, then Tawi-Tawi and Jolo. We fly seasonally to Batanes, Sandakan [North Borneo] and Siargao.

Then we’re opening another product line—a partnership between Seair and Tiger Airways. It’s our low-cost operation and for this, we will be acquiring two Airbus 320s. Initially, we’re planning to operate it, from Clark, to Singapore, Macau, Cebu and Davao. Then we’re looking at other points in the region for eventual expansion: Inchon or Busan in Korea, Okinawa [Japan], Kaoshiung in Taiwan.

Can’t you offer these regional flights from Manila instead of Clark?

We are helping in the development and progress of the DMIA [Diosdado Macapagal International Airport]. Seair is the first and only Philippine carrier based in Clark, Pampanga. We are placing our bets on Clark. That will be the eventual gateway.

But that Clark gateway plan has been in the works since President Ramos’ time!

Events will catch up in Manila because there is no room for expansion there. An A380 cannot operate in Naia [Ninoy Aquino International Airport] because of its very limited facility. It’s already been established that when an A380 lands and takes off from Naia runway 0624, nobody can use the taxiway. If there’s an aircraft on the taxiway there’s going to be a wing tip collision! At the DMIA there is unlimited space because it used to be a military airbase. There are two parallel world-class runways there, which can be independently used.

When are you acquiring the A320s?

As early as February 2007. It’s a lease arrangement with Tiger Airways [a subsidiary of Singapore Airlines]. We chose Tiger as a product because the brand name is already established and has a high name recall. So marketing-wise it’s got all the advantage. Basically it’s an interlining arrangement, we feed traffic to one another. There will be an additional 18 pilots and 36 flight attendants earmarked for the A320.

How do you describe the tourism market now? Are the tourists more budget conscious?

No matter what you do, no matter what generation, the reality of market segmentation is there—meaning that there will be always those on the high-end and on the low-end. Those on the high-end, no matter how you bring your price, they would want to be identified as the best, the highest quality, and they’re willing to pay the price. The reality is always there. And of course, there are those who are price-conscious. And again that’s a reality.

So where is Seair positioning itself?

We have the high-end product through the Seair special domestic connections. We are coming up with the Tiger brand for the low-cost low fare, no-frills operation. We’re addressing the entire range of the market. Not a bad marketing strategy huh?

Of course they will help us in marketing our flights, and we will also use their distribution system, to enhance our sales.

Do you think Cebu Pacific’s Go Fares have unduly disrupted the pricing structure of the market? Some airlines say those low fares are unsustainable without any subsidies from Cebu Pac’s parent firm.

No, it has a positive effect as far as the industry is concerned. When Cebu Pacific started in 1994, Philippine Airlines was prepared for it of course. Ang totoo, tuwang-tuwa kami sa kanila. They were expanding the market because they were capturing the surface travelers from the ships and buses who were starting to fly on their low fares. So our philosophy then, “let them do their job,” because those markets they were creating will eventually develop an appetite for the higher service. And eventually they’ll be flying PAL, they’ll be flying the business class. Teka, why am I talking about PAL? I’m supposed to be talking about Seair!

Old habits die hard? So what’s the biggest challenge of the local airline industry?

The biggest challenge will still be the shortage of mission-critical skills because the availability of pilots and mechanics in relation to the number of aircraft that has been purchased by the airlines didn’t dovetail. Hundreds of aircraft have been added and yet no pilots and mechanics have been earmarked for those.

The low-cost carriers aggravated that problem because before, airlines would buy big aircraft so the demand for pilots were not that huge. Now smaller planes are being bought, and by the hundreds. So the requirements for pilots and mechanics have multiplied.

Some carriers are complaining that they are losing their pilots to the higher-paying foreign airlines. How are you going to deal with that issue?

I heard PAL has already increased its pilots’ salaries. We will go along with the industry trend, which is to calibrate all the salary levels, kasi ’di maiwasan ’yan. And of course, they will have to be made to appreciate the value of their own airline by fostering a well-knit close, almost family-like relationships. We will have constant dialogue.

Is Seair considering an employees’ stocks option plan as way to make them “appreciate” the airline?

That can also be considered, because part of the plan of the existing stockholders [Dornier, Gitsis and Tomas B. Lopez] is to expand the capital base of the airline for future expansion, so there will be more Filipino investors that will be attracted into the airline.

Are you considering an initial public offering to widen the Filipino ownership of the airline?

That’s always a possibility but we will have to be able to register attractive levels of returns for three consecutive years. So we will have to wait for that time. But we will work very hard in order to achieve that. [Revenues are projected to grow to P1 billion by yearend from P600 million in 2005.]

What’s your timetable to achieve this continued profitability?

Every year there will be gradual growth and development. The two A320s can virtually double the capacity of Seair. Remember, it’s a 180-seater aircraft against the 32-seater Dornier 328 and 19-seater LET-410 aircraft.

We will add more domestic routes. When we operate the A320 for the Manila-Cebu route, we will upgrade the Dornier 328 and introduce a linkage between Palawan and Iloilo. There is a high familial affinity between both provinces as many Ilonggos migrated to Palawan.

Seair has been operating for 11 years, since 1995. This year we will end up with a positive income.

Do you have any plans to change your turboprop fleet?

No. How can we change them when the domestic airports have not caught up with the march of technology and aviation? We have 13 aircraft—nine LET 410s, and four Dornier 328s. They are modern aircraft.

Some politicians in Pampanga are pushing open skies in Clark to supposedly bring in more tourists. Has your stand on a liberalized aviation policy changed from when you were at PAL?

The modern trend is to liberalize in order to really help improve our tourism even the economy. It cannot be denied that it’s been accepted globally that tourism is the biggest industry in the world today because of its multiplier effect. And those who have liberalized their skies have become successful, like Singapore, for example.

But if you have open skies, there must be reciprocity. We have to get the same benefits in return. Di naman makikinabang ang Seair doon kung i-open ang Philippines, then the same privilege is not available to us. Seair is on the verge of expansion, where are we going to fly?

So will you keep on teaching?

I intend to finish the semester [until April]. I have about 80 students. Perhaps I will just maintain one subject because I will lose a lot of time. But it looks like the attitude of Seair’s owners is for me to continue with my teaching because it helps in the promotion of the airline. So I’ll play it by ear.

How do you spend your leisure time?

I don’t have any except for that one hour of brisk walking and calisthenics every morning. I’ve lost 30 pounds—no more beer belly. Basically I take out my wife on Sundays, to church, then with some two or three young kids, we go to the mall, we eat or watch a movie.

Every now and then, we have parties on the third floor of our home in Taytay, about 20 minutes away from Makati when there’s no traffic. On the fourth floor is my gym. But on the third floor is where we get together especially when someone has a birthday. We have food, beer and sing on the videoke.

Really? What do you like to sing?

Madalas kong banatan simple lang, ’yung “A Certain Smile,” “Portrait of My Love,” “Perhaps Love”…. Every now and then, nagma-“My Way” din. Pag hawak ko na mikropono, nobody would dare take it away from me. Hahaha.

(Personal Fortune is a magazine published every Friday by the BusinessMirror. Photos by Nonie Reyes, BusinessMirror)