Singapore Firm to Expand Facility in Clark

According to the Clark International Airport Corp., aircraft maintenance, repair and overhaul (MRO) firm SIA Engineering Co. (SIAEC) will invest close to P1 billion to put up a second hangar at the facility.

New aviation officials well qualified –DoTC

MANILA, Philippines – The newly appointed officials of the Civil Aviation Authority of the Philippines (CAAP) are qualified, and they bring to their jobs a “wealth of expertise and experience that are precisely needed to bring our aviation sector to the next level,” according to Undersecretary Dante M. Velasco, of Department of Transportation and Communications.

Velasco pointed out that the new appointees are expected to make up for the lack of real aviation experience among the current crop of top CAAP executives. “This is seen by industry experts as the major stumbling block to the country’s ability to move from Category 2 to Category 1,” he added.

The DoTC Secretary is pushing the CAAP to get back the Category 1 status, thus CAAP executives are now focused on accomplishing “every actionable item” in the identified hurdles toward getting once again the Category 1 status,” he said.

Reacting to a statement that the International Civil Aviation Organization (ICAO) wants a CAAP that is “professionalized,” Velasco countered that “these newly designated executives are precisely aviation professionals in the highest order and therefore meet the requirements of ICAO.

Current CAAP Director General Alfonso Cusi, who reportedly objected to the appointments of the new CAAP officials, had extensive experience in shipping, but not in aviation. Earlier, a Congressman during the hearing on DoTC’s budget, asked about Cusi’s aviation experience, adding that what the country’s aviation authority needs are “real aviation experts”.

Those who were recently appointed to key CAAP positions by the CAAP Board are: Ramon Gutierrez, deputy director general for administration; Napoleon Garcia, deputy director general for operations; Wilfredo Borja, assistant director general III (Air Traffic Services); Andrew Basallote, assistant director II (Air Navigation Services); Edgardo Costes, assistant director general II (Aerodrome Development and Management Services); Wilson Mirabona, assistant director general I (Aerodrome Development and Management Services); and Andres Lauriall, assistant director general I (Civil Aviation Training Center).

“Gone were the days when non-aviation people were appointed to critical posts in aviation: they have just been replaced by air sector experts,” the DoTC official said.

CAAP - Gunning after Cusi

SO-CALLED presidential "desire letters" used to apply only to nominations to the boards of government owned and controlled corporations. Hence it is rather odd for Malacañang to tell the Department of Transport and Communication that it is President Aquino’s "desire" that seven line positions in the Civil Aviation Authority of the Philippines, which are not vacant in the first place, be filled with his nominees.

We could dismiss the Palace action as just another example of its high-handed management style. What Noynoy wants, or probably more accurately what his buddies want, they get. And niceties, not to speak of legalities, be damned.

The Palace meddling is unwarranted. The CAAP charter provides that "the Director General shall be responsible for the exercise of all powers and the discharge of all duties of the authority and shall have control over all personnel and activities of the authority."

The background to this flap is that the Palace wants Cusi out. He, however, isn’t budging. Probably some bright guy in the Palace though that surrounding him with deputies not of his own confidence might just be the aggravation that would prompt him to throw in the towel.

There are two strikes going against Cusi. First is his alleged lack of qualifications for the job and the second is his being an appointee of former President Gloria Arroyo.

Critics of Cusi says he has no business handling aviation because his background is maritime (his previous posting was as administrator of the Maritime Industry Authority). They could be right, although some people involved in the aviation sector have been giving Cusi good marks since he came on board last March.

The more grievous sin of Cuisi, however, is his being identified with the last administration. But the apparent return of politics in the running CAAP (formerly the Air Transport Office) could mean the continued downgrade of Philippine aviation and what this means to the travel and tourism sector.

Under ATO, highly technical positions were given to people with political connections while the welfare of check pilots and air traffic controllers ended up in the bottom of official priorities. This was one of the reasons the US Federal Aviation Authority downgraded the Philippines from Category 1 to Category 2 status.

In gunning after Cusi, the Palace might be cutting off the nose to spite the face.

CAAP - Cusi outflanked as all his top aviation officials replaced

THE Philippine Transport Department has dislodged seven aviation officials to give way to appointees with “more experience and expertise,” an official told the Manila Standard Wednesday.

The seven had been placed on floating status and would have to wait for their new designations, Transport Undersecretary Dante Velasco said.

“As career officials, they can choose to stay or leave the agency,” Velasco said in a phone interview.

He said the Transport Department was also planning to appoint a new director of the Civil Aviation Authority of the Philippines to replace Alfonso Cusi, “But we are still studying that from a legal standpoint.”

Cusi refused to comment on the new appointments, but said he had already written the Transport Department requesting it to follow the procedure for career positions that should have security of tenure.

The new officials of the Civil Aviation Authority who replaced the seven took their oath Wednesday last week, he said.

He confirmed the appointment of the following officials:

• Ramon Gutierrez as deputy director general for Administration

• Napoleon Garcia as deputy director general for Operations

• Wilfredo Borja as assistant director general II for Air Traffic Services

• Andrew Basallote as assistant director general II for Air Navigation Service

• Edgardo Costes as assistant director general II for Aerodrome Development and Management Service

• Wilson Mirabona as assistant director general I for Aerodrome Development and Management Service

• Andres Laurilla as assistant director general I for the Civil Aviation Training Center.

“We just got the right people. The new government needs the right people to get things done,” Velasco said, adding that with their oath-taking on Wednesday, the appointments were considered “final” and were approved by the majority of the Civil Aviation board.

Velasco said the seven aviation officials who were replaced were appointed by the Arroyo administration, but they lacked the skills to upgrade the aviation sector.

“We need to make up for lack of aviation experience and expertise of the people now leaving the CAAP and [for the Philippines] to get back the Category 1 status,” Velasco said.

He said officials of the European Union and the International Civil Aviation Organization had ordered the Philippines to professionalize the CAAP and appoint officials based on their technical expertise.

“We need to do that to get back the Category 1 status and lift the EU ban on our carriers,” Velasco said.

In 2007 the US Federal Aviation Administration placed the Philippines on a list of 21 countries on Category 2 from Category 1 “for failure to provide safety oversight of its air-carrier operators in accordance with the safety-oversight standards set by the International Civil Aviation Authority.”

The Philippines’ aviation facilities still failed in the second audit conducted bythe FAA last year, so those stayed under Category 2 in aviation safety standards.

“The [new officials] came from the private entities involved in aviation,” Velasco said.

“We are confident that with the new composition of the CAAP, we can pass the FAA audit.”

PAF Gets Brand-new Trainer Airplanes

The Philippine Air Force (PAF) is set to fly again when it receives four brand new trainer airplanes bought this year from Italy through the military’s modernization program.

The four trainer planes, part of 18 on order, will be formally accepted by PAF chief Lt. Gen. Oscar Rabena in formal ceremonies to be held at the PAF training school in Pampanga this morning.  Witnessing the event will be Defense Secretary Voltaire T. Gazmin.

PAF spokesperson Lt. Col. Miguel Ernesto Okol said this initial delivery is part of the 18 basic trainer aircraft which the Air Force is acquiring from Augusta of Italy with a total cost of P621,671,409.06.

The package includes the airplanes, spare parts, training and integrated logistical support.

Okol disclosed that the Pilot Training System of the Philippine Air Force currently uses both the T-41 and the SF-260 aircraft for primary and basic training respectively.

“The hand-over of T-41 aircraft from the Republic of South Korea in 2009 provided more primary trainer aircraft for the Philippine Air Force Flying School,” Okol said.

“These (SF-260) trainers will significantly increase the number of available basic trainer aircraft of the PAF for flight training,” Okol said.

According to the PAF spokesperson, the PAF is lacking in training aircraft, with at least 150 to 170 Air Force officers forced to wait in line for actual training to fly an aircraft.  The arrival of the four SF-260 Marchetti planes will boost the training capability of the Air Force and ease the backlog of students required to undergo flying exercises.

Okol however clarified that even if the officers wait in line to get flying time, their time was not wasted as they are required to undergo training in other career fields related to intelligence, computers, logistics and maintenance.

The propeller-driven AF-260 is the world’s most successful screener and primary trainer.

Fully acrobatic by design, the SF-260 offers flight characteristics and performance levels that allow effective pilot candidates screening early in the program and minimizes the costs incurred when students wash out on jets or complex turboprops.

The SF-260, with Allison 250-B17D Turboprop engine, has a span of 8.35 meters, length of 7.40 meters, rate climb of 2,200 feet per minute and maximum level speed of 228 KTAS (knots true air speed).  All SF-260 variants are available with either piston or turbine engines.

Some 900 SF-260 have been sold to 27 different military customers, civil professional flying schools and private operators worldwide.  The Italian Air Force bought 30 brand new units.

The expected completion of delivery for the remaining 14 aircraft will be in the first quarter of next year.

PAL willing to spend P2.5-B to end labor woes

Local carrier Philippine Airlines said it is willing to put to rest the messy labor row between the management and labor union with a P2.5 billion settlement.

In a statement on Wednesday, PAL president and CEO Jaime Bautista said they will abide by the recent decision of the labor department to enhance the separation benefits of the 2,600 employees who will be laid off.

Last week, labor secretary Rosalinda Baldoz recognized PAL management's prerogative to outsource 3 non-core operations to be more cost-competitive in an industry where the players have increased and fares have raced to the bottom.

Bautista said the planned spin-off of the in-flight catering, airport services, and call center reservations was initially estimated to cost about P2 billion, based on the earlier decision by the Department of Labor and Employment (DOLE) that was contested by the union.

The modifications in the financial and non-cash benefits will cost an additional over P400 million, according to the PAL statement.

"This is a bitter pill we have to swallow," Bautista said. The airline has suffered financial losses due to the residual impact of the high oil prices and the limits in additional flights as a result of the regulatory decisions of the US and the European Union aviation bodies.

To finance the higher separation packages, Bautista said they are considering availing of additional loans from government banks, particularly the Development Bank of the Philippines or Land Bank of the Philippines. "If this is not possible, we will seek financing from other PAL creditors," he added.

"By not contesting the DOLE Secretary's decision, especially the grant of additional benefits, PAL hopes to finally implement a long delayed corporate restructuring," he stressed. "They will all receive their respective separation pay and benefits that are much more than what the Labor Code provides."

He then urged PALEA leaders to also respect the DOLE decision.

But PALEA president Gerry Rivera said they would exhaust all legal means to prevent the layoff.

PAL's position comes a day after the Philippine Airlines Employees' Association (PALEA), the ground crew union at PAL, staged a protest action at the historic Mendiola Plaza historic Don Chino Roces Bridge (formerly Mendiola) near Malacañang despite PAL's threat of charging them with abandonment of work.

The labor department has averted a strike that could have paralyzed the operations of the local carrier. The Aquino government, which has initially intervened when the labor issues has worsened mid-year, had said they will abide by the decision of the labor department.

No jobs lost

Bautista added that the 2,600 PAL employees who will be laid off can seek employment again at the companies that will absorb the outsourced services.

"Sec. Baldoz, no less, assured PALEA there will be no jobs lost in the spin off. Aside from receiving their benefits, all affected workers have the option of applying for positions in the third party service providers if they so choose," he said.

e-Ventus, the call center arm of telecommunications giant Philippine Long Distance Telephone Company (PLDT), will absorb the reservations and phone customer service operations, while Sky Kitchen and Sky Logistics, both owned by Cebu-based businessman Manny Osmena, will soon provide the outsourced catering and airport services, respectively.

"At the end of the day, PAL wants to be remembered not for the 2,600 jobs it lost, but the more than 4,000 it saved," Bautista ended.

Phone jammers to be used vs human traffickers

The Bureau of Immigration (BI) will put in place cell phone jammers at immigration zones in airports in order to immobilize human traffickers.

Syndicates make use of mobile phones in communicating with their cohorts and victims.

In a press release, Immigration Officer-In-Charge Ronaldo Ledesma said the necessary equipments are now in place at the Ninoy Aquino International Airport (NAIA).

There are currently 4 jammers and a server at the immigration zone there, costing around P400,000.

The equipments were bought during the previous administration. The BI had to stop using them due to protests from airline companies and other airport stakeholders.

A permit is needed from the National Telecommunications Commission (NTC) for their re-activation. BI property section chief John Tugade said he has already applied for a permit with the NTC.

Ledesma said similar jammers will be installed in other international airports in the country once the bureau gets the necessary budget.

“These cellphone jammers will definitely go a long way in bolstering our fight against human traffickers,” Ledesma said.

Reactivating the jammers is one of several measures that the BI and the Inter-Agency Council Against Trafficking (IACAT) have adopted in its fight against human trafficking.

Ledesma also announced 3 weeks ago the adoption of the so-called “S-line” queuing system for all arriving and departing passengers at the NAIA and other airports to prevent collusion among human traffickers and rogue immigration personnel.

The “S-line” aims to prevent international passengers from choosing which immigration counter to line up to process their travel documents.

Airline pax to pay OverTime of Bureau of Customs Officers

Airline passengers and overseas Filipino workers (OFWs) will have to shell out an extra $1 to $2 when they leave the country with the impending implementation of a new policy to pay for the overtime pay of Customs agents at the airports.

The move was prompted by a Court of Appeals ruling favoring international carriers, through the Board of Airline Representatives, that they are not bound to shoulder the overtime pay of Customs agents.

The ruling in effect passes on to passengers the responsibility of assuming this financial obligation.

Customs Commissioner Angelito Alvarez said an additional cost of $1 to $2 may be imposed to finance the allowances and overtime pay of Customs agents.

“The additional $1 to $2 would either be incorporated in the terminal fee or would be paid as a separate account in the airport,” he said.

He said that Customs personnel have not received such monetary benefits since July last year.

This non-payment of overtime pay had Customs agents refusing to render work beyond the prescribed eight-hour period.

The CA ruling also obliged the Bureau of Customs (BoC) to draft a Memorandum of Understanding (MoU) that the passengers at the airport such as the OFWs, for instance, would have to shoulder the cost.

However, representatives of the Ninoy Aquino International Airport (NAIA), and the Bureau of Customs, Immigration and Quarantine, among others, have yet to approved the agreement.

For the meantime, Alvarez said the agency has secured airlines' commitment to pay at least five months’ worth of overtime pay and allowances in exchange for the services of Customs employees until the yearend.

The proposed MoU came after the Customs agents threatened to refuse working beyond the working hours last week.

The BoC is looking at implementing the measure amid the government's limited room to take on additional cost. The Aquino administration is aiming to contain its budget deficit within the P325-billion ceiling.

Passengers departing for other countries are each charged a terminal fee of P750 as well as travel tax of P1,650.

Air Force: 4 new trainer planes from Italy to boost pilot training

The Philippine Air Force (PAF) on Tuesday expressed confidence that the scheduled arrival of four new trainer planes from Italy will boost the training of its pilots.

Air Force spokesman Lt. Col. Miguel Ernesto Okol said the four SF-260 trainer planes, which are expected to arrive by Thursday, are part of the 18 basic trainer aircraft purchased by the Philippine government for P621.67 million from Agusta, an Italian aircraft manufacturer.

"The arrival of the four SF-260 Marchetti planes will boost the training capability of the Air Force and ease the backlog of students required to undergo flying exercises," Okol said.

Currently, the Air Force lacks training aircraft, with at least 150 to 170 Air Force officers forced to wait in line for an actual training to fly an aircraft.

The SF-260 was originally manufactured by SAIA Marchetti, which was later purchased by Agusta and Alenia Aermacchi, both Italian firms.

The remaining 14 SF-260 planes will be delivered to the Philippine in the first quarter of 2011.

The 18-plane package deal, bought through the AFP modernization program, already includes spare parts, training and integrated logistical support, Okol said.

In 2009, the Philippines acquired from South Korea 15 T-41 aircraft, which along with SF-260 are used by trainees of the Philippine Air Force Flying School in their primary and basic flight training.

The propeller-driven SF-260 offers "flight characteristics and performance levels that allow effective pilot candidates screening early in the program and minimizes the costs incurred when students wash out on jets or complex turboprops," Okol explained.

The SF-260 is currently used various military institutions, civil professional flying schools, and private operators worldwide

Airphil Express eyes more regional routes

Budget carrier Airphil Express eyes to aggressively expand its regional routes in the next few months, despite experiencing a shortage in pilots recently.

Airphil Express executive vice president and chief operating officer Cesar Chiong said they may add 5 more destinations in Asia within the first half of next year as they take delivery of new aircraft.

The airline plans to start flying to Hong Kong, Korea, Kuala Lumpur, Bali and China, but this would "depend on air entitlements."

"If [we] get the traffic rights, of course, we will tap those markets," Chiong said.

Airphil Express launched last week its maiden international flight to Singapore, one of the most profitable and high-growth routes for airlines operating in Southeast Asia.

Domestically, it just started flights to Legazpi, Tagbilaran, Catarman, and Ozamis.

However, after launching the new destinations, Airphil Express experienced a shortage in pilots which forced it to cancel or delay several local flights over the weekend.

In a text message to abs-cbnNEWS.com, Airphil Express vice president for marketing and media Maria Java said the problem did not have an impact on their expansion plans.

"We do not expect this circumstance to happen again," she said.

In August, Airphil Express' affiliate, flag carrier Philippine Airlines (PAL), was also forced to cancel flights after 25 of its pilots suddenly quit for higher paying jobs abroad.

Java clarified that last weekend's pilot shortage was "in no way related to PAL concerns. Our incident is isolated."

"All our operations are now back to normal and on schedule," she added.

Airphil Express, which is owned by tycoon Lucio Tan, was formerly Air Philippines until it was folded into the operations of PAL and its budget airline arm, PAL Express. In October 2009, Airphil Express began operating PAL Express flights on behalf of PAL.

In the next 2 and a half years, Airphil Express will spend $250 million for the acquisition of up to 20 more aircraft to service both domestic and expanding international operations.

IPO

Meanwhile, Airphil Express is targeting to undertake an initial public offering (IPO) within 2 to 3 years, Chiong said.

The proceeds will be used to fund expansion.

"Timing is very important. The local economy is expected to grow faster with the recovery of the US economy. That will do us good," Chiong noted.

Airphil Express' rival, Cebu Pacific, raised P26.8 billion or $611 million in its October 27 IPO, making it a record amount in dollar terms for a Philippine listing.

Cebu Pacific, a unit of Gokongwei-led JG Summit Holdings Corp., expects to increase its international capacity by 25% in 4 to 5 years via new foreign routes.