Ambulance jet to be based in Subic Bay

as CareJet Celebrates 50th Air Ambulance Transport

Guam - In November of 2007, CareJet flew its inaugural air ambulance transport carrying a patient diagnosed with an Acute Myocardial Infarction from Guam to Hawaii. Nearly two years later, on December 7th CareJet saw its Westwind II jet accomplish its landmark 50th flight, facilitating the transfer of a critically ill member of the US Department of Homeland Security from Belau National Hospital to Guam’s Naval Hospital.

Of CareJet’s 50 flights, 30 have served patients from the Commonwealth of the Northern Mariana Islands. CareJet also flew a total of 16 patients from Guam’s hospitals, of which six self-paid for transport, five were covered by insurance*, four were at the military’s request, and one was funded by MIP.

December, 2009, was CareJet’s busiest month to date with a total of nine missions: six from Saipan, one from Guam, one from Palau, and one from the Solomon Islands. In 2010, CareJet expects to pass yet another milestone as it inches closer to its 100th transport.

Also expected in 2010 is the addition of another jet to the CareJet fleet to be based in Subic Bay, Philippines. This second aircraft will provide supplementary coverage for Guam, CNMI, and the FSM while further expanding CareJet's reach within Asia. For more information about CareJet, please visit www.aviationconcepts.aero.

In January of of this year, Calvo’s Select Care Insurance became the first and only insurance provider to offer air ambulance coverage in Guam and the CNMI. pacificnewscenter.com

Refurbished golf course to revive Subic airport

SUBIC BAY FREEPORT — Subic Golf Course operator Hanafil Golf and Tour Inc. will revive the Subic Bay International Airport by bringing in more foreign golfers once the golfing facility is finished.

The company plans to resume its junket flights after golf course stakeholder Hanatour, South Korea’s largest tourism company, pledged to bring in tourists directly to Subic.

“We are planning to use the SBIA and a partner airline company with low cost fares to bring in more golfers from other countries. The golf course was designed to handle 180 golfers a day, and that number will expand once we add nine more holes in the next phase of the development,” Hanafil President and CEO Benjamin John Defensor III said.

Currently, the company has completed 40 percent of the reconstruction process for the course.

“That includes the reshaping of the greens and fairways of the first nine holes to make it flow better,” Defensor said.

“Current improvements are the eco-friendly irrigation system that uses recycled water, brand new nursery that can use salt water and the drainage system that was replaced to accommodate the volume of rainfall come this rainy season.”

“But these renovations are not just for new members; the company is also accommodating all previous members of the golf club as long as they update their accounts and coordinate with us and the SBMA (Subic Bay Metropolitan Authority),” Defensor said.

An agreement was signed recently between the Bureau of Immigration (BI) and the SBMA and Clark Development Corporation (CDC) that would allow visa-free entry to foreigners visiting the two free ports.

Under the agreement signed by Immigration Commissioner Marcelino Libanan with SBMA Administrator Armand Arreza and CDC President Benigno Ricafort, officers and personnel of foreign locators in the two free ports may now enter and stay in the country without a visa for a period of 14 days.

The privilege, however, will only be extended to those arriving through the Diosdado Macapagal International Airport (DMIA) or the SBIA. By JONAS REYES - mb.com.ph

SBMA: No rush to close Subic airport

SUBIC BAY FREE PORT—While the Subic Bay International Airport (SBIA) is losing money ever since Federal Express transferred its Asia One logistics hub from here to China in February last year, Subic authorities are still reluctant to close it down.

Armand Arreza, administrator and chief executive officer of the Subic Bay Metropolitan Authority (SBMA), said they are still evaluating its viability and exploring alternatives for the SBIA, which serves as a secondary airport and a main diversion terminal for the Ninoy Aquino International Airport in Manila.

“There is no rush to close the airport,” Arreza told Subic locators in a recent meeting. “Actually, we are still marketing the airport and looking for other alternatives to make it useful.”

Arreza said among the options under consideration is turning part of the 200-hectare airport into a logistics area.

“If we convert 40 hectares of the airport’s 200-hectare area, then we can raise about $80 million,” Arreza said.

“This 40-hectare portion could serve as a logistics area, while the rest could be used for commercial development,” he added.

The SBIA grew from what was the Naval Air Station when Subic was still an American military base.

Built in the early years of the SBMA in the hope of servicing both passenger and cargo planes, the SBIA is equipped with a 2,728-meter runway, modern navigational systems, and a 10,000-square meter passenger terminal that could handle 700 passengers at any given time.

The airport can also take in 41 commercial aircraft, a capacity proven in the past few years when Taiwanese passenger planes were diverted to Subic after the island-nation was buffeted by typhoons.

Since 1996 until February last year, the Subic airport served as the Asia-Pacific hub of courier giant FedEx. But when FedEx planes flew out to China for good in 2009, the SBIA was largely relegated to serving as the base for training schools.

Meanwhile, the dream of having passenger airlines making connecting flights to Subic never really took off after some attempts by several firms.

According to SBMA records, aircraft movement in the Subic free port significantly dropped from 108,686 in 2008 when FedEx still operated out of Subic, to just 57,246 in 2009.

Similarly, passenger movement plummeted from 10,682 in 2008 to only 7,059 in 2009.

Arreza said that due to slow business, the airport has been missing out on its $20-million loan payments.

“Economically, it doesn’t make sense anymore to continue its operations,” Arreza said in a recent media briefing. “It doesn’t even break even anymore, as it did when FedEx was still here.”

Arreza said the planned conversion of part of the Subic airport is consistent with the SBMA expansion program, which was meant to address the limited commercial and industrial space in Subic’s controlled area.

“The trend now in Subic is to move out of the central business district, and even outside the traditional boundaries, the fenced-in portion,” Arreza said.

“We will now focus on developing significant infrastructure facilities in those areas in

Subic airport to be converted into logistics hub

The Subic Freeport airport may be converted into a logistics hub to maximize its potentials after its failure to find a replacement of the FedEx, which used to operate its Asia Pacific hub in the Freeport.

This was revealed by Subic Bay Metropolitan Authority (SBMA) administrator Armand C. Arreza to reporters covering the ground breaking ceremony of the regional leaf warehouse of Philip Morris Philippines Manufacturing Inc.

Arreza said they are still studying the conversion of the airport.

The planned conversion has taken into consideration the more competitive Clark freeport, which is being groomed as the country?s next international airport.

Arreza said the Freeport currently pays P250 million in debt service annually and P80 million for maintenance.

"We need between 12 to 15 flights a day to break even" he said.

"With the departure of FedEx, Subic is left with no user at all and source of revenue. How can we sustain that?" Arreza said.

On the other hand, Arreza said that Clark offers free parking and landing fees to the budget airlines operating in the former American Airfield.

FedEx left Subic as its Asia Pacific hub in February 2009 to a more profitable Guangzhuo, China.

?We are still studying its conversion, but we also want Subic to a subsidiary airport to Clark,? he said.

The airport, he said, could be converted into a logistics hub noting that they have not enough space for the logistics firms operating in the Freeport .

Earlier, however, SBMA was in talks with several groups that could replace the slot left by FedEx, which has finally closed its Asia Pacific hub in Subic Freeport as it transfers to a more profitable new hub in Guangzhou, China leaving 500 workers jobless.

?We?re in talks with several groups but no immediate replacement,? said Arreza the day after FedEx pulled out its last plane in Subic after operating its Asia Pacific hub in the former U.S. military base for the past 16 years.

Arreza, however, refused to elaborate except to say that negotiations for possible replacement of FedEx are ongoing.

Last year, SBMA forged an agreement with UK-based Stratospheric Airship Technologies (SAT), which has committed to invest $ 500 million for aircraft manufacturing by taking over the facilities of FedEx.

But SAT official said that SAT is not going to replace the Asia Pacific hub operations of FedEx but rather transform the facility into an aircraft manufacturing hub.

The FedEx hub, which began operations in 1996, earned the Subic Bay authority about P150 million (3.2 million dollars) from landing fees and warehousing in 2008.

About 500 workers were expected to lose jobs. At the peak of its operations in 2004, the FedEx unit in Subic employed about 800 people.

At the time FedEx came into Subic, it was hoped it would lure foreign businesses to Subic and breathe new life into the area after the US closed its military bases in the Philippines in 1992. (PNA)

Subic - Guam Direct Flights Planned

Last January 14, Aviation Concepts Inc.(ACI), headed by its President and CEO Terry Habeck, and accompanied by the Subic Bay International Airport Asst. General Manager, Felix A. Visey, paid a visit to Mayor Bong Gordon to declare his company's intention to locate at Subic Bay Freeport. ACI is a Guam based aircraft operator engaged in acquisition, consulting, flight management, cleaning, detailing and air charter.

Buoyed up by the recent sisterhood relationship between Guam and Olongapo City, Mayor Gordon’s frequent visit to said US Trust territory have developed deep camaraderie among Olongapo officials and those from Guam. Mr. Habeck and the honorable Mayor, found a common friend in the Former Guam Governor Carl Gutierrez who originally was part of the contingent, but had to fly back due to medical emergency in the family.

ACI’s expansion of its operations to Subic Bay was prompted by, according to Mr. Habeck, known dedication and skills of Filipino workers, particularly those who served during the US Navy and FedEx days and the work ethics displayed and the training undertaken by these workers.

Once operational Mr. Habeck will need the services of aircraft mechanics and technicians and paramedics for its air ambulance.

Aviation Concepts Inc. (ACI), treats customer's business aviation services and needs second to none. ACI prides itself of dedication and commitment to the quality, safety and efficiency of aircraft management and charter so that customers can fly with peace of mind. ACI's diversified range of services extends from aircraft acquisition and sales, completion management and aviation consulting, offering our customers additional valuable services at their disposal.

Mayor Bong promptly provided the group with Olongapo City promotional brochures and invited them to join the forthcoming Annual Pacific Mayor's Conference to be held on February 18-21 this year at the Olongapo City Convention Center and Subic Bay Exhibition and Convention Center.

Pacific Pearl to start $10-M Subic project

SUBIC BAY FREE PORT—A low-cost airline which has established its base of operations here has announced the start of its $10-million project to fly chartered planes to various tourist destinations in the country and abroad.

Pacific Pearl Airways (PPA), a private airline established in 2006, said it will begin flying out of the Subic Bay International Airport (SBIA) in December this year.

Airline president Kristoffer Jimenez, who signed the firm’s business contract with the Subic Bay Metropolitan Authority (SBMA) last week, said PPA will initially field two advanced Boeing 737-200 jets for international flights and some turboprop aircraft for local flights.

Jimenez said local destinations will initially be to popular tourism spots like Boracay, Bohol, Cebu and Davao. But as PPA begins to establish its presence in the local airline industry, the company will expand its local flight destinations.

According to the airline official, the Subic Bay Free Port has a “very strategic location.”

“A lot of tourists come here, foreigners and locals alike. It is also a booming place in terms of businesses,” Jimenez added, ticking off the advantages of locating in Subic.

To attract its potential market, Jimenez said PPA “will be offering competitive rates without sacrificing quality service costs,” an advantage he said was made possible by tax incentives and other perks offered by the SBMA.

He added that his company also intends to “eliminate stop-over hassles” with direct flights, thereby significantly cutting travel lag time.

This would allow Pacific Pearl passengers to gain more savings and more quality holidays, said Jimenez.

Meanwhile, SBMA Administrator Armand Arreza said during the contract-signing ceremonies that PPA’s $10-million investment pledge is “proof of Subic Bay’s economic resiliency.”

“What we have witnessed now proves that there’s still life after FedEx,” said Arreza, adding that the SBMA has been trying to attract more locators to the SBIA.

FedEx, the US courier giant that used SBIA as its Asia-Pacific hub since 1998, transferred its hub operations to China in February, bowing to realities of the expanding Chinese market.

Arreza, however, pointed out that because of its international airport, “Subic can host just about any kind of air-transport requirements.”

Arreza cited that the SBIA’s cargo-sorting capability has its edge over other airports in the country today. Written by Henry Empeño / Business Mirror Correspondent

Fifth freedom’ rights eyed for Kuwait-Subic/Clark flights

By Henry Empeño - Business Mirror

SUBIC BAY FREEPORT—The Philippines and Kuwait have begun bilateral talks on liberalized civil-aviation policies that would entitle designated airlines of both countries to operate from the free ports of Subic or Clark to any point in Kuwait and vice versa.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza said the broad terms of discussions included provisions for “Fifth freedom rights” that essentially allows an airline to carry passengers from intermediate points between the two contracting countries.

“This will be a big shot in the arm to both the local aviation and tourism industry,” Arreza said on Thursday, pointing out that airports in both Subic and Clark could accommodate passenger and cargo flights.

“The Diosdado Macapagal International Airport [DMIA] in Clark would probably benefit the most because it’s already established as a commercial airport, but our own Subic Bay International Airport [SBIA] could still play catchup,” Arreza added.

Arreza said the initial round of discussions for the prospective Kuwait-Clark/Subic routes was concluded during the visit to the country of Kuwait’s Prime Minister Sheik Nasser al-Mohamed al-Alhmed al-Jabber al-Sabah from August 14 to 16.

Secretary Edgardo Pamintuan, chairman of the Subic-Clark Alliance for Development Council, and Fawaz Alfarah, president of the Kuwait Civil Aviation, signed the record of discussion on August 15.

A copy of the record of discussion showed that the two parties agreed to specifically entitle designated airlines of both countries to operate air services from Clark/Subic to any point in Kuwait, and from any point in Kuwait to Clark/Subic, “with any number of frequencies and with any type of aircraft.”

The two parties also agreed that such air services along these routes “shall enjoy unlimited frequencies with Fifth freedom traffic rights both for passenger and cargo flights.”

The Fifth freedom rights as discussed, however, specifically provided that any point in the United States “shall not be served as an intermediate or beyond point of destination.”

The discussion also provided that Kuwait shall grant designated Filipino airlines serving the Kuwait-Clark/Subic routes a 10-percent discount on fuel and 15-percent discount on ground-handling services.

Arreza said formal negotiations for these agreed-upon items are expected to be held soon between the respective civil-aviation authorities of the two countries.

Once the agreement is sealed, the SBMA “expects to better market Subic as a destination for international tourists, as well as a logistics hub,” he added. While Clark has lately attracted several airlines flying international routes, the Subic airport has been used mostly for domestic flights and logistics operations by FedEx.

SBMA records indicate that from January to July 2008, a total of 57,998 domestic aircraft and 6,840 FedEx flights used the SBIA.

The Subic airport, which has a 10,000-sq-m passenger terminal and is equipped with an upgraded instrument landing system, now serves as a secondary airport and a main diversion airport of the Ninoy Aquino International Airport in Manila. It can accommodate as many as 41 passenger planes at a time, including wide-bodied aircraft like Airbus A340-200s and Boeing 747-400s, SBMA airport officials said.

Arreza said the SBIA could expect more international passengers once the Kuwait-Subic route is established.

Stalemate over opening up of Clark, Subic to foreign airlines continues

A LIMITED experiment to open the Diosdado Macapagal International Airport (DMIA) in Clark and the Subic Airport in Olongapo City to foreign airlines is still in an impasse as stakeholders could not agree on what course to take.

This surfaced during an open forum called by the Philippine Chamber of Commerce and Industry (PCCI) on whether or not the Philippines will open its international airports to foreign carriers.

President Gloria Macapagal-Arroyo earlier opened the Clark airport named after her late father, to "no-frills, cheap" carriers by issuing Executive Order (EO) 500. The experiment seemed to have succeeded, according to airport officials, when passenger traffic jumped from a tiny 7,880 in 2003 to 471,000 last year.

The original EO was the first serious attempt to open up air rights to foreign airlines outside of the Manila International Airport. The Philippine aviation industry is one of the few pockets in the Philippine economy not yet opened to foreigners.

Other protected areas are the news media, advertising and land ownership.

But domestic airline operators protested the limited open sky policy, which prompted the President to water it down with the issuance of EO-500-B. Air traffic to Clark slowed down.

On representation by open sky advocates led by the Clark Development Authority (CDC), the experiment is supposed to be continued with the issuance of a third order.

But in last week's forum, the Fair Trade Alliance (FTA) and Philippine Airlines (PAL) reiterated their objection.

PAL particularly invoked the idea of reciprocity that would allow Philippine carriers to also ferry passengers to and from their countries that will be fielding their airlines to and from the two Central Luzon airports.

FTA head, former senator Wigberto Tañada, on the other hand, advised the government to get all stakeholders to agree on a national policy on international air transport and then calibrate its implementation.

Jose Clemente, president of the Philippine Travel Agencies Association (PTAA), on the other hand, took the side of opening up Clark and Subic, and for that matter, all major airports in the country, to foreign carriers.

Clemente argued that allowing foreign airlines to bring in and pick up passengers is a big boost to the tourism industry.

Clark and Subic authorities have been advocating for the two airports opening to foreign airlines more to bolster the entry of new investors in the former American bases and in gearing up the Clark Airport as the premier international port of the country in the new century.

(Abe P. Belena/Philexport News and Features/Sunnex)

Delay of ‘open skies’ in Subic, Clark angers Neri

Socio-Economic Planning Secretary Romulo Neri expressed his anger on the managers of the Diosdado Macapagal International Airport (DMIA) and the Subic Bay International Airport (SBIA) for delaying the open sky policy that President Gloria Macapagal Arroyo has ordered for the two airports.


He told representatives of the two airports not to make their own interpretation of the word reciprocity in questioning whether foreign airlines that offer to ferry passengers and cargo in and out of the two special economic zones are qualified.

"Reciprocity," he said, "does not mean that if a Korean Airline has regular trips between Seoul and Clark, it does not follow that the Philippine Airlines will also be allowed to fly the same route, he told the airport managers."

The reciprocity comes in the form of bigger tourism traffic, and more investors going to Central Luzon that will boost tourism and investments in the area.

The action team had notified the National Competitiveness Council that mis-interpretation by airport officials of the presidential order to develop Clark as the new logistics hub in Asia, has delayed the increase of no-frills budget airlines into starting regular international flights to and from Clark.

The NCC explained that reciprocity would come in the impact of the open sky policy in the two airports on users and businesses and the employment and income opportunities by the bigger air traffic in Central Luzon.

Neri told airport officials that a boom in tourism and more frequent trips of OFWs using the two airports as a result of the open sky policy, will be more than enough to constitute reciprocity.

At the same time, the NCC decided to push for the lighting of four domestic airports in different parts of the country.

When consulted on the matter, the Air Transportation Office estimated that on the average, lighting a domestic airport to allow the landing and take-off of planes at night would cost about P150 million.

They were told that the airlines are willing to do the job if the government allows the investments to be later charged against their landing fees. Asked to identify the top priority airport, airport officials identified the Caticlan Port in Aklan which, if lighted, can increase overnight the tourist arrivals in Boracay.
By EDU LOPEZ - MB