CEB Announces MEL

11 December 2017

Low cost carrier Cebu Pacific has announced that it will fly from Manila to Melbourne by the middle of 2018.

Cebu Pacific has increased flight frequency between Manila and Sydney from five times weekly to daily operations beginning Dec. 1, 2017 to Jan. 31, 2018.

Due to utilization of flight entitlements by the airline it has run short of the required seats to make the route to Melbourne viable.

Cebu Pacific vice president of corporate communications JR Mantaring said the airline has already requested the Philippine air panel to hold air talks with the government of Australia for additional seats as these was provided in the 2015 air bilaterals.

The Philippine air panel and its counterpart in Australia raised seat entitlements between the two countries to 9,300 seats from 6,300 seats per week in 2015.

Manataring said the airline requested for 872 seats between Manila and Melbourne equivalent to thrice a week schedule on the A330-300 which the airline intends to use.

PAL Announces Delivery Schedule for A350

Triple seven arrives on the 16th 

7 December 2017

Flag carrier Philippine Airlines (PAL) has announced that it will take delivery of the A350-900 ultra-long haul aircraft beginning June 2018 with first flight bound to Toronto, Canada.

The changed plan was brought by regulatory delays which prompted the airline to defer inaugural Manila to New York direct flight which is tentatively set as early as August 2018 coinciding with the delivery of the second A350.

The airline will take delivery of four 295 seater Airbus A350-900 with 3 class configuration in 2018 with the first frame arriving in June, according to PAL President Jaime J. Bautista.

“We will receive another one in August, September and December,” Bautista remarks.

In the meantime, two new Boeing 777-300ER planes will be arriving in the Philippines on December 16 and 19 according to PAL for rotations to North America and London.


16 November 2017
Philippine Air Asia unveiled its newest aircraft with a new aircraft livery culminating the 50th anniversary of the formation of ASEA, with the 10-country economic bloc's culture as the main design theme.

The aircraft livery, dubbed "I Love Asean", showcased designs inspired by textiles, architecture, art and nature from all 10 Asean nations, namely batik cetak from Malaysia, poom khao bin from Thailand, ulos Batak from Indonesia, tapis from the Philippines, trong dong from Vietnam, kbach pka Chan from Cambodia, Lao phouthai from Laos, chate from Myanmar, jongsarat Brunei from Brunei, and Vanda Miss Joaquim from Singapore.

"We owe our success to Asean. As a truly Asean airline, we want to bring the people across the region closer together in line with the amazing work Asean has done over the past 50 years." AirAsia group CEO Tan Sri Tony Fernandes said.

Philippine Air Asia operates a fleet of 18 A320-200s flying domestic and regional destinations.

PH-SK Upgrades ASA

16 November 2017

The Philippine and South Korean government signed a new Air Services Agreement between the two countries increasing seat allocations between Manila and Seoul.

The new memorandum of understanding (MOU) on air services concluded in November 8, 2017 at Seoul, South Korea increased seat allocations for each country from the current 13,500 per week to 20,000 per week.

The Philippines was represented by DOTr Undersecretary for Aviation and Airports Manuel Antonio L. Tamayo, and South Korea was represented by Ms. Kim Jung Hee.

Carmelo Arcilla, Civil Aeronautics Board(CAB) executive director,said the new MOU means that all Philippine carriers authorized to operate between Manila and Seoul can utilize a combined total of 20,000 seats per week, while the same number of 20,000 seats per week is also available for all the Korean airlines authorized to operate between Seoul and Manila.

Arcilla was part of the Philippine delegation to Korea which includes Department of Trade and Industry (DTI) Undersecretary Rowel Barba, Department of Foreign Affairs (DFA) Assistant Secretary Leo Herrera Lim, Department of Tourism (DOT) Undersecretary Benito Bengson, and Jesus Ibay from CAB.

Representatives from Philippine Airlines, Cebu Pacific, Air Asia Philippines, and Pan Pacific airways and the Korean Air carriers attended the 2-day talk.

“The expanded air traffic rights in Manila is intended to address the increased demand for air services between Manila and Korea,” Arcilla said.

Airlines from both countries are also allowed unlimited traffic rights to airports outside the country’s premier gateway.

“The unlimited air traffic rights outside Manila is in line with Philippine government policy to develop airports outside Manila and spur the economic development of new tourism, trade and economic centers outside Manila,” Arcilla said.

The new seats made available is equivalent to 3 Boeing 747-400 additional services per day. It will enable PAL and CEB to fly its B777 and A330 thrice daily from Manila to Seoul while also giving more seats to Air Asia to fly its A330 twice daily. 

According to CAB there are eight Korean air carriers and five Philippine air carriers operating between the two countries.

South Korea remains the topmost foreign visitor to the Philippines registering 1.6 million passengers arriving in different points in the country, data from Department of Tourism showed.

CEB Cancels Sandakan

 23 October 2017

Low cost carrier Cebu Pacific Air (CEB) has cancelled the 4x weekly services from Zamboanga-Sandakan-Zamboanga route citing poor sales to the proposed upcoming route slated to commence on October 29 despite one way promotional sales pegged at 1,119.00.

The airline said it was postponing the flight indefinitely without notice as to when it commence soon as it announced fare refunds for the said services.

“We apologize to all our partners, agents, suppliers, our stakeholders, and most importantly to all our guests who booked flights between Zamboanga and Sandakan for any inconvenience this postponement has caused. We had to make the difficult decision to postpone the launch of our Zamboanga-Sandakan service to give more time to work on operational details,” said Alexander Lao, president and CEO of Cebgo.

CEB was supposed to fly four times weekly to Sandakan every Tuesdays, Thursdays, Saturdays and Sundays on ATR72-500 aircraft which begins Sunday.

Legaspi Night Flights Suspended

19 October 2017

Night flights to and from Legaspi Airport was suspended Saturday by the Civil Aviation Authority CAAP) after lightning strike disabled its runway lights Friday night. The lights are currently being repaired and is expected to be back in service tomorrow.

CAAP disclosed that a lightning bolt struck and damaged the less than a year runway end identification lights (REIL) system as it was activated for aircraft landing from Manila. REIL are high intensity strobe lights that are placed at both sides of the runway to mark the threshold.

Cebu Pacific (CEB) is the sole night flight user of Legaspi airport as it operates six daily flights to and from Legazpi via Manila and Cebu. Evening flights operated by CEB subsidiary Cebgo, depart Manila at 6:15 p.m. and 7:20 p.m, and arrive in Legazpi at 7:40 p.m. and 8:45 p.m., respectively. The return flights leave Legazpi at 8:20 p.m. and 9:35 p.m., and land in Manila at 9:40 p.m. and 10:55 p.m., respectively.

The airline operates night flights to and from secondary CAAP airports of Caticlan, Dumaguete, Naga, Roxas, and Butuan airports on top of trunk routes in Cebu, Davao, Bacolod, Iloilo, Puerto Princesa, Cagayan de Oro, and Zamboanga.

The lighting facilities for Legaspi airport was recently made operational in October last year.

C Series Becomes Baby Bus

18 October 2017

Montreal – Airbus SE (EPA: AIR) and Bombardier Inc. (TSX: BBD.B) become partners on the C Series aircraft programme after the former acquired the latter's C Series Jet programme in a deal that was sealed in 16 October.

Airbus will acquire a 50.01% interest in CSALP. Bombardier and Investissement Québec (IQ) will own approximately 30.09% and 19% respectively.

The agreement brings together Airbus’ global reach and scale with Bombardier’s newest, state-of-the-art jet aircraft family, positioning both partners to fully unlock the value of the C Series platform and create significant new value for customers, suppliers, employees and shareholders.

Bombardier's C Series jet seats 100 to 150 complementing Airbus A320NEO programme that offers 150-240 seats.

"This is a win-win for everybody! The C Series, with its state-of-the-art design and great economics, is a great fit with our existing single-aisle aircraft family and rapidly extends our product offering into a fast growing market sector. I have no doubt that our partnership with Bombardier will boost sales and the value of this programme tremendously,” said Airbus Chief Executive Officer Tom Enders.

Airbus will provide procurement, sales and marketing, and customer support expertise to the C Series Aircraft Limited Partnership (CSALP), the entity that manufactures and sells the C Series which is expected to strengthen and accelerate the C Series’ commercial momentum.

CSALP’s headquarters and primary assembly line and related functions will remain in Québec, with the support of Airbus’ global reach and scale. Airbus’ global industrial footprint will expand with the Final Assembly Line in Canada and additional C Series production at Airbus’ manufacturing site in Alabama, U.S. This strengthening of the programme and global cooperation will have positive effects on Québec and Canadian aerospace operations.

"Not only will this partnership secure the C Series and its industrial operations in Canada, the U.K. and China, but we also bring new jobs to the U.S. Airbus will benefit from strengthening its product portfolio in the high-volume single-aisle market, offering superior value to our airline customers worldwide." adds Enders.

“We are very pleased to welcome Airbus to the C Series programme,” said Alain Bellemare, President and Chief Executive Officer of Bombardier Inc.

“Airbus is the perfect partner for us, Québec and Canada. Their global scale, strong customer relationships and operational expertise are key ingredients for unleashing the full value of the C Series. This partnership should more than double the value of the C Series programme and ensures our remarkable game-changing aircraft realizes its full potential.”says Alain Bellemare.

Ownership Structure and Agreement Highlights
The C Series programme is operated by CSALP in respect of which Bombardier and IQ respectively hold approximately a 62% and a 38% interest. The Investment Agreement contemplates Airbus acquiring a 50.01% interest in CSALP. Airbus will enter into commercial agreements relating to (i) sales and marketing support services for the C Series, (ii) management of procurement, which will include leading negotiations to improve CSALP level supplier agreements, and (iii) customer support. At closing, there will be no cash contribution by any of the partners, nor will CSALP assume any financial debt.

Bombardier will continue with its current funding plan of CSALP and will fund, if required, the cash shortfalls of CSALP during the first year following the closing up to a maximum amount of US$350 million, and during the second and third years following the closing up to a maximum aggregate amount of US$350 million over both years, in consideration for non-voting participating shares of CSALP with cumulative annual dividends of 2%, with any excess shortfall during such periods to be shared proportionately amongst Class A shareholders.

Airbus will benefit from call rights in respect of all of Bombardier’s interest in CSALP at fair market value, with the amount for non-voting participating shares used by Bombardier capped at the invested amount plus accrued but unpaid dividends, including a call right exercisable no earlier than 7.5 years following the closing, except in the event of certain changes in the control of Bombardier, in which case the right is accelerated.

Bombardier will benefit from a corresponding put right whereby it could require that Airbus acquire its interest at fair market value after the expiry of the same period. IQ’s interest is redeemable at fair market value by CSALP, under certain conditions, starting in 2023. IQ will also benefit from tag along rights in connection with a sale by Bombardier of its interest in the partnership.

The Board of Directors of CSALP will initially consist of seven directors, four of whom will be proposed by Airbus, two of whom will be proposed by Bombardier, and one of whom will be proposed by IQ. Airbus will be entitled to name the Chairman of CSALP.

Subject to obtaining the required approval from the Toronto Stock Exchange, the transaction also provides for the issuance to Airbus, upon closing, of warrants exercisable to acquire up to 100,000,000 Class B Shares (subordinate voting) of Bombardier (representing approximately 5% of the aggregate issued and outstanding Class A Shares (multiple voting) and Class B Shares of Bombardier on a fully-diluted basis, and approximately 5% of the aggregate issued and outstanding Class A Shares and Class B Shares on a non-diluted basis), at an exercise price per share equal to the US$ equivalent of C$2.29, which represents the volume-weighted average price of the Class B Shares over the five trading days ending Friday, 13 October 2017. The warrants will have a five-year term from the date of issue, will not be listed and will provide for market standard adjustment provisions, including in the event of corporate changes, stock splits, non-cash dividends, distributions of rights, options or warrants to all or substantially all shareholders or consolidations.

The issuance of the warrants and their terms were negotiated between Bombardier and Airbus at arm’s length and will not materially affect control of Bombardier. Security holder approval will be required under Toronto Stock Exchange rules due to the fact that the warrants will be issued later than 45 days from the date upon which the exercise price was established. Such approval is expected to be obtained by way of written consent of shareholders holding more than 50% of the voting rights attached to all of Bombardier’s issued and outstanding shares.

The transaction has been approved by the Boards of Directors of both Airbus and Bombardier, as well as the Cabinet of the Government of Québec. The transaction remains subject to regulatory approvals, as well as other conditions usual in this type of transaction. There are no guarantees that the transaction will be completed and that the conditions to which it is subject would be met. Completion of the transaction is currently expected for the second half of 2018.

Iloilo Airport Closes After Aircraft Accident

5J 461 Verred Off Runway

14 October 2017

A Cebu Pacific (CEB) Airbus 320 plane with serial number RP-C3237(sn) carrying 180 passengers from Manila has veered right off runway after landing at Iloilo International Airport runway 20 Friday evening ended up stopping on the grass.

All passengers were accounted for and was safely evacuated after the airline initiated emergency evacuation procedure when the aircraft came to a complete stop after landing.

The airport was declared closed by Civil Aviation Authority (CAAP) last night because of runway obstruction affecting 33 subsequent domestic and international flight to Iloilo.

The airport is expected to be closed until Sunday evening.