PAL will Build 2000 HA - Philippines largest Airport Near Manila

 

Jean-Francois Laval, center, senior vice president for sales Asia of Airbus; Lucio Tan, left, chairman and CEO of Philippine Airlines, and Ramon S. Ang, president and COO of Philippine Airlines hold an Airbus A321 model aircraft in a news conference Tuesday Aug. 28, 2012, in Manila, Philippine Airlines signed a $7 billion deal to buy 54 Airbus jets. PAL on Thursday disclosed plans to build what could be the largest airport in the Philippines. AP PHOTO/BULLIT MARQUEZ

Shortly after signing a multibillion-dollar deal to acquire 54 new Airbus planes—the biggest aircraft order in the country's history—flag carrier Philippine Airlines (PAL) on disclosed plans to build what could be the largest airport in the Philippines.

The planned airport would be able to handle four times as many flights per hour as the congested Ninoy Aquino International Airport (Naia) in Pasay City. Naia, built in the 1950s, has been criticized as obsolete with decrepit facilities. It can handle 36 flights per hour.

PAL president Ramon S. Ang said investments in infrastructure was part of the company's aggressive expansion program, which could include rehiring some of the 2,600 employees PAL retrenched in October of last year.

"We have a plan for our own terminal and runway. We still have to clear this with the government but we are hoping they will support us," Ang told reporters at the sidelines of the firm's annual shareholders' meeting.

He said the new airport would be closer to Manila than the Clark International Airport in Pampanga, which the government is grooming to replace Naia.

Ang, who also serves as president of PAL's controlling shareholder San Miguel Corp., declined to disclose the prospective location for the new facility, but said the company would need at least 2,000 hectares of land for the project.

The new airport, which will be exclusive to PAL and sister firm PAL Express (formerly Air Philippines), would have two parallel runways when it opens, with the option of having two more. Parallel runways mean two planes can take off and land at the same time—now impossible at Naia's perpendicular runways.

Ang said the government's plan to turn Clark into the country's premier gateway might be ill-advised, given the facility's distance from Manila. "If you want to fly [from] Clark, how long will it take you to get to the airport? Two hours if you are coming from Makati. Then you have to wait two more hours for your flight," Ang said.

 

He said plans to build a new high-speed railway between Metro Manila and Clark—at an estimated cost of $10 billion—would be too heavy a burden for the government to carry.

Ang said the company would shell out about $500 million in equity for the airport project. The rest of the project cost would be financed using loans from foreign or local banks.

Once approved by the government, he said PAL could complete the project in three years. "We plan to pitch this to President Aquino in January or February. Hopefully, this is aligned with the government's plans," he said.

Ang said the new airport, together with other components of PAL's expansion, could lead to a solution to the labor problems that have hounded the airline for more than a decade.

Inquirer 

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Philippine Economy Grow 6.1% first half 2012 outperforms Asian neighbors, but not China

Philippines is among the fastest-growing Asian economies for the first half of the year, so far topped only by China and Indonesia, the country's chief state economist claimed Thursday (August 30, 2012).

Socioeconomic Planning Secretary Arsenio Balisacan said the announced gross domestic product (GDP) growth of 5.9 percent from April to June  2012 showed the Philippines' "continued resurgence in economic activities from a moderate growth of 3.6 percent in the same period in 2011."

With its strong second quarter result, the Philippine economy posted growth of 6.1 percent January to June, outperforming most its neighbors, Balisacan said.

"Within the ASEAN (Association of Southeast Asian Nations), the Philippine economic growth performance was above the preliminary average growth (4.7%) of the region..." he noted.

The Philippine economy grew faster compared to Malaysia, which posted an expansion of 5.4 percent in the first half; Thailand, 4.2 percent; Vietnam, 4.4 percent; and Singapore, 2 percent.

However, its GDP growth was lower than that of China at 7.8 percent and Indonesia at 6.4 percent.

Bulk of the country's economic growth in the second quarter was due to expansion in the services sector, including the continuously growing business process outsourcing industry, official data showed.

The sector grew by 7.6 percent from April to June, and contributed 4.3 percentage points to the 5.9-percent total GDP growth.

The top contributors to growth in this sector were increased economic activities in transportation, storage and communication; real estate and renting; as well as trade and financial services, among others.

Industry, meanwhile, contributed 1.5 percentage points to the total, growing by 4.6 percent.

This was due to a boom in construction; electricity, gas and water supply; as well as manufacturing. These offset a contraction in mining and quarrying.

Agriculture posted the slowest growth of 0.7 percent in the three-month period, contributing only 0.1 percentage points to the GDP growth.

Balisacan noted that the government expects the Philippine economy to continue growing over the next two quarters.

"We are optimistic that the resiliency of our economy, as reflected by the strong real GDP performance in the two quarters of 2012, will not dissipate in the succeeding quarters despite the uncertainties," the Cabinet official said.

He added that the government is maintaining its full-year growth target of 5 to 6 percent.

This, as he noted that external and internal risks continue to pose threats to the local economy.

"Further weakness of a struggling global economic recovery will remain a strong challenge in the near-term, with the slowdown of China reining in on global growth," Balisacan said.

He also cited the potential impact of an intensification of the euro area problem.

"Another downside risk is the El Niño phenomenon, which, according to experts, will commence on the third quarter of the current year until the first quarter of 2013," Balisacan said.

He added, however, that its impact onthe GDP will be weak to moderate.

Recent weather disturbances which hit the country will also have very small impact, which Balisacan estimated at only 0.5 percent of GDP.

Yahoo Philippines

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