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Wednesday, June 15, 2011

USA will Support the Philippines' Spratly issue but Filipinos - cautious might betray again

A United Nations convention is clear on what constitutes sovereign territory, and the United States is prepared to do whatever is asked of it by the Philippines in connection with the South China Sea / West Philippine Sea dispute, US Ambassador Harry Thomas Jr. said Monday (June 13, 2011) in Makati. Thomas Statement is absolutely opposite of the statement of Rebecca Thomson; US spokesperson saying “The US will not support the Philippine Spratly Issue as they are out of the Issue. Even USA is not united of their stands for the Spratlys issue.

 “We will do whatever we’re asked,” Thomas told The STAR during a visit to the newspaper office, when asked if the US would be willing to participate in the settlement of the territorial dispute.

But he quickly added, “What we want to say is right now we believe consistently that is not something for us to do. We have not been asked to do that. And we can’t deal with hypotheticals.”

Later, when pressed about US participation in negotiations, he said, “We have not been invited.”

Thomas spoke as China warned external powers to stay out of the overlapping territorial claims in the Spratly Islands.

Reuters reported Monday (June 13, 2011) from Beijing that the warning was contained in a commentary in the main military newspaper Liberation Army Daily, which is controlled by China’s Communist Party, and where articles are vetted to reflect official thinking.

President Aquino welcomed Thomas’ statement as he noted the military power of China and its huge population.

“We don’t want any hostility to break out,” Aquino said at Malacañang, even as he reaffirmed that islands in the West Philippine Sea are within undisputed Philippine territory under an international convention.

“Perhaps the presence of our treaty partner, which is the United States of America, ensures that all of us will have freedom of navigation, will conform to international law,” Aquino added.

Earlier Monday (June 13, 2011), Thomas said the US would stand with the Philippines in all issues.

“I want to assure you – on all subjects, we in the United States are with the Philippines. The Philippines and the United States are strategic treaty allies. We are partners,” Thomas said at the launching of the US-supported National Renewable Energy Program in Makati City.

“We will continue to consult and work with each other on all issues, including the South China Sea and Spratly Islands,” Thomas said.

The Philippines has protested Chinese military activities in the West Philippine Sea, which is within the country’s territory as defined under the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

The UNCLOS, Thomas said, is “pretty clear on what is Philippine territory.”

Thomas mentioned that US President Barack Obama has said Washington supports the 2002 Code of Conduct in the South China Sea under UNCLOS.

Among other things, the Code of Conduct calls for all claimants to sit together and settle the dispute, he said.

President Aquino is so thankful

President Aquino welcomed Thomas’ declaration.

“We are grateful to the (US), especially when they reiterated that we are strategic partners, we have a treaty between us,” Aquino said when asked for his reaction to Thomas’ statement in a press briefing later at Malacañang.

The President stressed the importance of adhering to international laws, specifically UNCLOS.

“What that law says is that you have exclusive economic authority or exclusive economic zone extending 200 (nautical) miles from your continental shelf,” Aquino said.

“Reed (Recto) Bank, which is the subject of incidents lately, is located 80 (nautical) miles off Palawan, the closest of our contention in the Spratlys, the closest China (has) is 576 (nautical) miles if I remember correctly - 576 is obviously greater than 200,” he added.

“Why should there be a dispute if we are conforming to international law?” Aquino asked.

“Of course, they are a superpower, more than 10 times our population, we don’t want any hostility to break out. Perhaps the presence of our treaty partner which is the United States of America ensures that all of us will have freedom of navigation, will conform to international law,” the President said.

Deputy presidential spokesperson Abigail Valte said in a press briefing that the statement of the US ambassador “reaffirms even more our commitment to finding diplomatic and a peaceful resolution on the issues that we have in the West Philippine Sea.”

Valte said the statement was welcome because “everybody knows that we always have good relationship with the United States and so with other countries as well, even if we have issues with them.”

But Valte said there was no need to elaborate on the kind of assistance that the US is prepared to offer in the event of armed hostilities with China.

“We are in the process of trying to find a peaceful resolution to the conflict that we are in the middle of. So we do not want to make any statement that would be contrary to that position,” she said.

“I think with or without that clear statement, we have always been firm on our position on the issue. I don’t think anybody can doubt our resolve to have a resolution, a peaceful and diplomatic resolution on the issue,” Valte said.

“Our resolve cannot be questioned and that we will do so, we will pursue such resolution through diplomatic moves,” Valte said.

Valte said there should be no talk of military assistance yet because all claimant-countries were talking and seeking a peaceful resolution to the issue.

Chinese Ambassador Liu Jianchao said on Saturday that “military means” was not an option for China.

Authorities have recorded six to seven incursions into Philippine-claimed areas by Chinese vessels and aircraft.

Drilon appeal for Peace in Spratlys

Sen. Franklin Drilon, an administration ally, called for an end to incendiary statements on the West Philippine Sea issue.

“All sides should exercise calm and avoid issuing statements because this is a very sensitive issue. We must defend our sovereignty but we must also be very careful in issuing statements,” Drilon said.

Drilon emphasized that only the Department of Foreign Affairs should be allowed to issue statements because the issue involves diplomacy and foreign relations.

Drilon also said the country’s relations with China cannot be easily set aside. He was apparently referring to a call by Albay Gov. Joey Salceda for a boycott of Chinese products.

He also stressed that the issue should be discussed multilaterally, or taken up before the International Court of Justice.

The Philippines and other countries in the Association of Southeast Asian Nations (ASEAN), he added, may take a united stand against China’s alleged bullying.

“This cannot be resolved on a bilateral or one-on-one basis. China is too big so the discussions should be multilateral, meaning the claimants in ASEAN should form a body to face China,” Drilon said.

Senate committee on foreign relations chair Loren Legarda also pushed for diplomacy in resolving the issue.

“It is to the region’s and the international community’s collective interest that the parties remain committed to exploring ways for building trust and confidence on the basis of equality and mutual respect,” Legarda said.

Cagayan Rep. Juan Ponce Enrile Jr., for his part, called for sobriety.

“Let the concerned agencies do the talking instead of (Palace) spokespersons who may not have a full grasp of West Philippine Sea, diplomacy, conflict management, and negotiations,” he said.

“When it comes to foreign policy, we should speak with one voice. We cannot compromise our foreign relations from interpretations made by spokespersons who muddle the handling of a potential conflict,” he said.

Enrile decried the apparently contradictory statements made by presidential spokesman Edwin Lacierda and Valte, his deputy, on the Spratlys issue.

He said that while Lacierda was quoted as saying that the country is “committed to a multilateral approach to the resolution of claims in the Spratlys,” Valte invoked the RP-US Mutual Defense Treaty (MDT).

Enrile said the agencies that should speak for the country on the issue are the DFA and the Department of National Defense.

Enrile’s father, Senate President Juan Ponce Enrile, Sen. Joker Arroyo and other senators have expressed doubts on whether the MDT can compel the US to help the Philippines in case of an armed confrontation with China.

Enrile said the best way to resolve the conflict would be through negotiations under the framework of the UNCLOS.

Boycott All Chinese Product

Rep. Enrile also chided Salceda for calling for a boycott of Chinese-made goods. Salceda belongs to the ruling Liberal Party.

“Why on earth are we calling for a boycott of Chinese goods? China is bigger than the Philippines in terms of consumer market, so how can we, as a neighbor, even contemplate about it?” he asked.

“As responsible elected officials, we should refrain from instigating a trade war with the third biggest buyer of Philippine exports. The saber rattling is uncalled for. Let’s put a stop to that,” Rep. Enrile said.

“We should instead focus on setting up our national coast defense system to protect our baselines and buy and patronize Filipino products so that we help our economy,” he said.

Sen. Ralph Recto also slammed Salceda for his boycott call.

“The right response is to increase our trade and investments with China and perhaps, maybe with the right growth formula, we can get even economically years from now,” he added.

He said that it would be a “big economic victory” for the Philippines if it closes its $900-million trade deficit with China.

The country imported $7 billion worth of goods from China in 2010 as against its exports of a little over $6 billion.

Recto likewise noted that as part of the emerging economies and touted by respected global bodies as among the Top 25 countries with strong economies by 2025, the Philippines should “act accordingly” and should not be “boycott happy.”

“We should not only engage China diplomatically but also through business,” Recto stressed.

“The Spratlys question should be settled peacefully. You can’t be saber rattling with China. It’s our biggest trading neighbor,” Recto said.

“An action like that (boycott call) has repercussions. They can tell all you Filipino people in China, go home. They can call for a boycott of all Filipino products. I don’t know who will lose in this one. So we should take it easy,” Sen. Enrile said.

Recto said the Armed Forces of the Philippines should beef up its arsenal and capability “not for arms race but to protect our coral reefs and fishermen.”

Recto said the AFP should start buying modern equipment and fleet.

“We should start buying some of these equipment and I don’t care if we buy them from China,” he said.

 

Monday, June 13, 2011

Lufthansa - the World biggest commercial Aircraft servicing build $130 Million in the Philippines

World biggest commercial jet’s servicing expansion to the Philippines

A hangar the size of two football pitches is rising at Manila airport as the Philippines bids to become one of the world's select few pit stops for the Airbus A380, the world's biggest commercial jet.

Lufthansa Technik Philippines is building the $30 million hangar, its third at the airport, to accommodate the new trend of larger aircraft, said its sales and marketing vice-president Dominik Wiener-Silva.

"What we're going to see is an increase in the average size of aircraft," he told AFP during a recent interview, adding that the industry overall was on an upswing after a difficult period.

The German firm hopes to cash in on the small group of carriers that have made the first 60 orders for the 275-tonne behemoths but lack their own maintenance facilities.

Only four sites worldwide can currently service the massive jet, which has a wing span of nearly 80 metres (262 feet).

"The Airbus 380 is a very large aircraft but it's not an unusually large aircraft," Wiener-Silva said. "The new hangar will be A380-capable. It will be large enough to have the largest aircraft in the world."

Set to be completed early next year, the new facility ramps up Lufthansa's capital investment in the Philippines to about $130 million, he added.

The core business of Lufthansa's Philippine unit is heavy maintenance.

Lufthansa Technik Philippines in Manila will carry out heavy maintenance IL checks and painting for two Kuwait Airways Airbus A340-300s this May and September. The Middle Eastern carrier is a new customer for Lufthansa Technik Philippines.

The Manila MRO, a joint venture of Lufthansa Technik AG and MacroAsia Corp., says it has more than 20 A330 and A340 base maintenance customers. For example, it recently extended a C check agreement for AirAsia X’s Airbus A330 and A340 fleet, for which it does base maintenance as well, and it redelivered its first Swiss A340-300 following a base maintenance check.

In addition to Swiss, Lufthansa Technik Philippines provides base maintenance for the A330s and A340s of sister airlines Lufthansa German Airlines, Austrian Airlines and bmi.

Lufthansa Technik Philippines performed its 100th A330/A340 heavy check in December 2009 on an A340, since gaining overhaul capacity on the type in 2002.

Once every five or six years, jets are grounded for 25 days and are stripped to bare metal to get all their many thousands of individual parts tested for safety.

Britain's Virgin Atlantic is its biggest customer, along with the likes of the long-haul budget carrier Air Asia X, Cathay Pacific, Etihad, Japan Airlines, Korean Air, Qantas and Saudi Airlines.

Twenty other airlines also have their line maintenance at Lufthansa's expanding Manila base for Airbus aircraft as well as the ATR 72-500, the short-haul turboprop favoured by many budget airlines.

Line maintenance is a lighter, 24-hour safety check that regulators require once every 18 months.

Lufthansa offers other types of services at its 30-plus units around the world, including one in southern China that specialises in thrust reversers and other composite-material components.

"After some very difficult years in 2009 and 2010 we certainly see signs of an upturn," Wiener-Silva said.

"Airlines, especially in Asia, are picking up fast. We're actually seeing the strongest growth worldwide in the Middle East and Asia."

Aircraft maintenance accounts for about 10-12 percent of airline operating costs, and the local unit, the largest majority-owned Lufthansa unit outside Germany, has tidy revenues of about $200 million yearly, said Wiener-Silva.

But the 2,700-strong workforce -- almost all of whom are Filipinos -- is what makes the firm stand out, he said.

"In aircraft maintenance you will always encounter the unpredictable. It's not a standard production process and if you look for defects you require solutions," Wiener-Silva said.

"Filipinos are really passionate about finding the solution, getting the aircraft fixed and making the customer happy."

Wiener-Silva said the Philippines was unique in the region for its English-speaking population and extensive network of aviation schools that supply Lufthansa's local workforce.

"That is different from other up-and-coming countries like India and China -- you won't find that infrastructure," he said.

New graduates who go to work for Lufthansa Technik are put through the in-house training school, where they undergo a further 1.5 years of hands-on training before they are entrusted with the multi-million-dollar planes.

The unit sees new business in cabin modification, both for full-service carriers, which are keen on issues such as improving cabin amenities, as well as low-cost operators seeking to improve efficiency, said Wiener-Silva.

"Even a mechanic needs to be able to differentiate between a full-service carrier, where the cabin is the important part of the product... and low-cost carriers, some of which don't even have carpets in their cabins anymore."

 

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