Philippines double Flights –Saudi, Air France-KLM cites Philippine-EU prospects

FRANCO-DUTCH airline Air France-KLM sees traffic between the Philippines and the European Union (EU) picking up in the long run from currently limited volumes, an official said in an interview after a briefing last Friday.

Asked on the plan of Philippine Airlines (PAL) to revive flights to Europe next year after an expected lifting of the current ban in that bloc on local carriers, Jurriaan Stelder, the foreign airline's new general manager for South China Sea, said the move may temporarily divide market share but that traffic should pick up eventually.

KLM Royal Dutch Airlines is currently the only carrier offering flights to Europe under its Manila-Taipei-Amsterdam route.

"There could be a temporary effect, but in the end, the demand will exceed the capacity again," Mr. Stelder said.

"There might be a temporary drop in traffic, because indeed, the same passenger traffic between the Philippines and Europe will be there and you will have to divide it between the two; therefore it will affect us," he explained.

PAL President Ramon S. Ang told reporters in July that the company is looking to revive flights to Europe next year, hoping that current government efforts will succeed in removing the "significant safety concern" cited by the International Civil Aviation Organization (ICAO) in December 2009, which in turn prompted EU in March 2010 to ban Philippine carriers from flying to Europe.

William K. Hotchkiss III, director-general of the Civil Aviation Authority of the Philippines, said last June that he hoped an ICAO audit set for late next month will yield favorable results. He said ICAO's concerns, such as "strengthening the organization and the training of qualified inspectors," were "being addressed."

Mr. Ang had said three Boeing 777-300ER aircraft will be delivered next year in preparation for more long-haul flights, including possibly to Europe.

"We would welcome Philippine Airlines to fly to Europe because it will help develop the market between the Philippines and Europe," Mr. Stelder said.

"If you look at the market -- flights between Europe and Manila -- and if you compare that to other similar countries, like Indonesia and Vietnam, it has much less traffic," he added. "With more options to fly, the market will grow."

Cebu Pacific has said it is also looking at flights to Europe after it starts long-haul operations to the Middle East next year.

"I am confident that we will be able to hold on to our passenger numbers for sure if we continue to develop the aviation sector between the Philippines and Europe," Mr. Stelder said, noting the airline's load factor along the Manila-Taipei-Amsterdam route is "around 90%."

Civil Aeronautics Board data show KLM Royal Dutch Airlines flew 84,897 passengers through the country in the first half, down 34.22% from the previous year after the carrier stopped direct flights between Manila and Amsterdam amid calls to abolish the 3.5% common carriers tax on foreign airlines. While the House of Representatives approved the bill scrapping this tax last May, the measure remains at the committee level in the Senate

Saudi Arabia expands and doubled flight frequencies

An increasing demand for air travel between the Philippines and the Kingdom of Saudi Arabia prompted the two states to renegotiate and expand the number of flights between their respective airports.

 As a result, KSA and the Philippines agreed – during air talks last Monday and Tuesday – to increase the number of flight frequencies to 21 per week from 10, Carmelo Arcilla, Civil Aeronautics Board executive director told reporters Wednesday.

 Also agreed was to have an unlimited number of flights between Dammam, the Kingdom's eastern province, and Clark International Airport in Pampanga, Arcilla added.

 "The parties signed a new agreement increasing the allowed flight frequency for the airline of each country from the current 10 flights per week to 21, on the route Philippines to Jeddah/Riyadh and unlimited between Saudi Arabia and Clark and also between the Philippines and Damman," he said.

Transportation Undersecretary Jose Perpetuo Lotilla led the Philippine panel in the talk with their Saudi counterparts, with Arcilla sitting as vice chair.

Other members of the panel were representatives from the Departments of Foreign Affairs, Trade and Industry, Tourism, and Labor and Employment.

Business World Online, GMA News

Continue reading

Philippines reports 326% increase in smartphone sales in 12 months

Telecom Lead Asia: The Philippines has reported 326 percent increase in smartphone sales over the last 12 months.

The emerging telecom market has become the fastest-growing market for smartphones in Southeast Asia.

According to GfK, the country recorded the highest jump in smartphone market share among its neighboring countries in the region, growing from 9 to 24 percent.

The growth in the country was significantly higher than the 78 percent growth posted in Southeast Asia's seven major markets, namely the Philippines, Singapore, Malaysia, Thailand, Indonesia, Vietnam, and Cambodia.

In July this year, GfK reported that one of four Filipinos own a smartphone, driven by the increasing affordability of smartphone devices across the country.

Filipino consumers bought five times as many smartphones in the first five months of this year compared to a year ago, bringing smartphone sales to almost 1.7 million units as of May this year.

"With major manufacturers announcing their intentions to launch low-end smartphones priced below $100, smartphones will be within the reach of an even larger pool of consumers and the market is expected to grow even faster when these models are made widely available," said GfK digital technology account director Gerard Tan.

According to IHS, smartphone shipments in 2013 are forecast to account for 54 percent of the total cellphone market.

Globe Telecom said it offers a range of smartphones bundled with its postpaid plans. For Plan 299, subscribers can get the latest Android devices such as the Huawei Y100 or Samsung Champ Deluxe Duo for free, complete with a consumable postpaid plan for calls, texts, and mobile internet.

The telco carries a complete suite of smartphone devices offered across its postpaid plans, available for free or at a minimum cashout payable for 24 to 30 months.

"Globe has maintained a strong partnership with some of the world's leading device manufacturers, empowering us to bring the latest smartphones to the country under our flagship postpaid plans," said Martha Sazon, head of Globe Postpaid.

Globe's postpaid base has grown by 76 percent within the last two years. In the last twelve months, Globe Postpaid has already added close to 348,000 new subscribers, bringing total subscriber count to 1.6 million, a 28 percent increase.

Telecom Lead

Continue reading

Philippines seeks ₱75-Billion PPP funds for rehabilitation 25 State hospitals

Public-Private partnership (PPP) investments are critical to the rehabilitation and improvement of 25 ailing government hospitals for ₱75 billion (at ₱3 billion each), according to an official of the Department of Health (DOH).

Health Undersecretary Dr. Teodoro Herbosa announced on Tuesday that the government is infusing ₱3 billion as counterpart funds for the initial improvement of these government hospitals to make them attractive to prospective PPP investors.

"If the government alone were to handle the rehabilitation of these 25 hospitals, it would take us more than 25 years to do it because of limited funds and the bureaucracy," Herbosa said at a briefing on PPP projects at the British Embassy in the Philippines.

He said the Philippine Orthopedic Center, whose medical infrastructure he said became outdated in 1960, is one of the government hospitals up for PPP investment with an estimated amount of ₱5.6 billion.

Herbosa, who heads the DOH Task Force for PPP and Health Facilities Enhancement Program, said the DOH Vaccine Self-Sufficiency Program is also being offered for PPP investment worth P1.2 billion.

To highlight key PPP investment opportunities in the Philippines, the United Kingdom Trade and Investment is hosting a seminar mission for British investors and companies on November 8 and 9 in Manila to help them explore opportunities on PPP and infrastructure investments in the country. A similar mission will also be held in Vietnam.

The Manila mission aims to provide a platform for British companies engaged in the Aquino administration's PPP program, enabling them to present their areas of expertise and capabilities before an audience of government agencies, key industry players, local suppliers and services firms that are potential partners of the British firms.

Britain is the country's largest investor in the past decade with combined net foreign direct and net portfolio investments from 1999 to 2010 worth $12 billion.

London said PPP projects that can be explored in the Philippines could reach 10 billion pounds to include roads, ports, airports, rail, health, education, power, water and agriculture.

It added that these projects, which had been made a priority for rollout from 2012 to 2013 and will cost £3.3 billion, include transport projects estimated at £2 billion and infrastructure projects at £1.3 billion.

The British Embassy is sending Herbosa and key government experts from the DOH, the Department of Transportation and Communications and the Department of Finance to London from October 7 to 15 to engage with British experts on the PPP program.

Herbosa said medical cost would not increase when the 25 government hospitals are "semi-privatized" under the program.

Under the rehabilitation plan, he added, 30 percent of hospital beds are for patients who can afford to pay and 70 percent will be reserved for sponsored patients, including the poor and those from the lower middle class, whose expenses will be shouldered by PhilHealth.

Among those targeted by the plan are Jose Reyes Memorial Hospital, Jose Fabella Hospital, San Lazaro Hospital, Quirino Hospital and National Mental Health Hospital.

ABS-CBN News

Continue reading