Govt revives FedEx bid
By Cecille Garcia, Manila Standard
SUBIC BAY FREEPORT – The Philippines will send a top-level mission to Memphis, Tennessee in April in a last-ditch effort to convince US air courier giant Federal Express (FedEx) to retain its hub in the Philippines.
Armand Arreza, administrator and chief executive officer of Subic Bay Metropolitan Authority (SBMA), yesterday said Trade and Industry Secretary Peter Favila would head the delegation leaving for FedEx’s headquarters in Memphis.
“We are still hoping that FedEx chairman Frederick Smith will reconsider its decision to move to Guangzhou (China) airport in 2008,” Arreza said.
He said he had proposed the creation of a “double hub” for FedEx operations in the Asia-Pacific region — one in China for the Northern Asia market and Subic Freeport here for Southeast Asia, Australia and New Zealand markets.
“If FedEx is concerned over the limited area of Subic Bay international airport in accommodating bigger planes, we can offer Clark as an alternative hub,” Arreza said. Clark before its conversion into an economic zone was the US’ largest air base overseas.
Arreza said SBMA stands to lose about P250 million in revenues annually representing the landing fees of FedEx on top of regular lease and rentals of airport facilities in Subic.
The Subic Bay airport accommodates an average of 18 flights each day and charges $800 per “touch and go” of FedEx planes.
Arreza said the moment FedEx starts to scale down its daily flights, “all these revenues will go down to drain.”
FedEx is moving its Asian hub to southern China to take advantage of the growing opportunities in the area. Arreza said FedEx has not issued a formal notification of its intention to terminate its Subic Bay contract set to expire in 2010.
Arreza said the SBMA was exploring the possibility of Hong Kong-based operators, which have tie-ups with different airlines servicing regular cargo terminals, to run the airport here to cushion the impact of a possible FedEx pullout.
“The Hong Kong airport may serve as a model for Subic airport cargo terminal operations to provide services to several international airlines,” Arreza said.
He added that these Hong Kong companies could replace the large-scale air cargo transshipment operations of FedEx by setting up similar operations here.
Arreza feared that FedEx’s pullout would displace 800 highly-skilled Filipino workers and lessen Subic’s prestige as an ecozone, affecting SBMA efforts to promote the investment area.
SUBIC BAY FREEPORT – The Philippines will send a top-level mission to Memphis, Tennessee in April in a last-ditch effort to convince US air courier giant Federal Express (FedEx) to retain its hub in the Philippines.
Armand Arreza, administrator and chief executive officer of Subic Bay Metropolitan Authority (SBMA), yesterday said Trade and Industry Secretary Peter Favila would head the delegation leaving for FedEx’s headquarters in Memphis.
“We are still hoping that FedEx chairman Frederick Smith will reconsider its decision to move to Guangzhou (China) airport in 2008,” Arreza said.
He said he had proposed the creation of a “double hub” for FedEx operations in the Asia-Pacific region — one in China for the Northern Asia market and Subic Freeport here for Southeast Asia, Australia and New Zealand markets.
“If FedEx is concerned over the limited area of Subic Bay international airport in accommodating bigger planes, we can offer Clark as an alternative hub,” Arreza said. Clark before its conversion into an economic zone was the US’ largest air base overseas.
Arreza said SBMA stands to lose about P250 million in revenues annually representing the landing fees of FedEx on top of regular lease and rentals of airport facilities in Subic.
The Subic Bay airport accommodates an average of 18 flights each day and charges $800 per “touch and go” of FedEx planes.
Arreza said the moment FedEx starts to scale down its daily flights, “all these revenues will go down to drain.”
FedEx is moving its Asian hub to southern China to take advantage of the growing opportunities in the area. Arreza said FedEx has not issued a formal notification of its intention to terminate its Subic Bay contract set to expire in 2010.
Arreza said the SBMA was exploring the possibility of Hong Kong-based operators, which have tie-ups with different airlines servicing regular cargo terminals, to run the airport here to cushion the impact of a possible FedEx pullout.
“The Hong Kong airport may serve as a model for Subic airport cargo terminal operations to provide services to several international airlines,” Arreza said.
He added that these Hong Kong companies could replace the large-scale air cargo transshipment operations of FedEx by setting up similar operations here.
Arreza feared that FedEx’s pullout would displace 800 highly-skilled Filipino workers and lessen Subic’s prestige as an ecozone, affecting SBMA efforts to promote the investment area.
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