Olongapo SubicBay BatangGapo Newscenter

Thursday, August 10, 2006

Arroyo asked: Ease landing rights for budget airlines

By Dante M. Fabian - SunStar

ANGELES CITY -- The City Council here on Tuesday passed a resolution asking President Arroyo to ease the regulations on the issuance of landing rights to low-cost carriers at the Diosdado Macapagal International Airport (DMIA).

The resolution, authored by Councilor Jay Sangil, urges President Gloria Macapagal-Arroyo to direct the concerned government agencies, particularly the Civil Aeronautics Board (CAB), to implement the full intent of Executive Order (EO) 500 to expand air services at DMIA.

The resolution also cited in particular policies that are delaying the issuance of Foreign Air Carrier Permits (FACPs).

Upon approval of Sangil's resolution, the councilors are requesting Arroyo to further direct the CAB to conduct a review and amendment of its policies in the issuance of FACPs in close consultation with, among other stakeholders, the Clark International Airport Corporation (Ciac), Clark Development Corporation (CDC), and representatives of LCCs operating at DMIA.

Sangil said the move is aimed at expediting the processing and approval of applications for FACPs by low-cost carriers, which are now bringing life to the operation of DMIA as an international gateway.

Sangil said however that the entry and operation of LCCs at Clark are critically dependent on their respective FACPs applied and approved before the CAB.

He said the possible entry of more LCCs and the growth of their existing operations inside DMIA is hampered/threatened by the inability of the CAB to issue short term, much less long term, FACPs.

"Without taking immediately necessary corrective measures, the inability of the CAB to issue FACPs now threatens to jeopardize the viability of the continued operations and growth of LCCs at Clark, and consequently negates its expected positive impact on the economy of Clark and its neighboring areas," said Sangil.

President Gloria Macapagal-Arroyo had declared during her 2006 State of the Nation Address (Sona) that the development of the Subic-Clark corridor as a "competitive international logistics center" will be her legacy to her kabalens in the Central Luzon region.

Sangil said the early realization of such a noble legacy is anchored on the full development and optimum operations of the DMIA.

EO 500 issued by President Arroyo on Feb. 27, 2006 provided for the expansion of air services to the DMIA thus making possible the continued operation and entry of additional of Low Cost Carriers (LCCs) that now offer, on a weekly basis, 41 international passenger flights.

Clark International Airport Corporation (CIACOR) officials said the entry and operation of LCCs at the DMIA has led to the dramatic 424 percent increase in the number of international passenger flights (2,373) flights in 2005 against 453 flights in 2004) and the 353 percent increase in the number of international passenger arrivals (224,497 passengers in 2005 against 49,546 passengers in 2004) at Clark.

"Considering that tourists account for at least 20% of all passenger arrivals in an airport, the continued growth of the operations of LCCs and arrival of passengers at DMIA bears tremendous positive impact for the local tourism industry," they added.

"Taking into account that tourists would spend on the average US$300 dollars in a destination area, the operation of LCCs at DMIA in 2005 invariably represented a US$13.5 million impact to the tourism industry of Clark and to its neighboring areas," an official said.

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