Tulabut: Race to Best Hub

Tuesday, August 16, 2011

IN CLARK, the airlines are not coming. They are are hubbing!

Yes, there is a difference between the two. An airline could just mount flights in and out of Clark. But if they choose to hub, it means operating a base where their fleet and crew are all headquartered in.

Have something to report? Tell us in text, photos or videos.

Setting up a hub means they are opening not just a check-in counter at the passenger terminal. It is opening complex operations that include aircraft dispatch and maintenance, air and ground crew deployment, cargo monitoring and safekeeping, flight mounting and tracking to and from various destinations.

That is happening at the Diosdado Macapagal International Airport (DMIA). And at a fast pace.

It now appears that airlines - especially low cost carriers - are racing to establish their respective hubs at the DMIA.

While the Gokongweis were first to set up hub in Clark few years ago with their Cebu Pacific flights, Antonio "Tonyboy" Cojuangco has just taken a more concrete step in setting up AirAsia Philippines by bringing in to Clark its very first brand new Airbus A-320 direct from Tolouse, France where it was assembled.

Not to be left behind too is Lucio Tan (why would he be?). Airphil Express, a sister company of Philippine Airlines, just signed a contract with Clark International Airport Corp (CIAC) to set its own hub at DMIA.

While Airphil Express is still not divulging exact routes and destinations for its DMIA endeavors, it said that it is "set to extend operation base in Pampanga." The airline currently flies to 25 domestic and two international destinations out of NAIA, Cebu, Davao and Zamboanga.

*****

So it is indeed now a race by the country's foremost budget airlines. Just what is it in Clark that the airline owners see? It is more than just the wide aviation complex that no other airports in the country have. It is the potentials of DMIA being the next premier gateway to the country.

Airline executives and aviation industry leaders - whether for Clark or not - already see this. Not just these days, but from way back.

In April 1994, former President Fidel Ramos already issued an Executive Order which designates Clark as the future site of the country's premier gateway. While that government move may have been stymied by other agenda and by business moves of airlines (and the government too) such as the construction of NAIA Terminal 2 and 3, there is now no escaping a reality that the Manila airport has already reached its saturation point. It is heavily congested and there is no longer room for expansion.

New generation wide-bodied aircraft such as the Airbus A-380 would find it hard to be landing and taking off at NAIA without the risk of mishaps due to constricted space on the ground. For Clark, it is entirely a different story as that mammoth aircraft has already, actually landed at DMIA in 2009 without any hitch.

There is also this very recent study by the JICA citing Clark as the most viable alternate to NAIA. This study presented to the Department of Transportation and Communications states that DMIA is way above other airports in the country in the ranking in being an alternate to NAIA.
These are experts from a country that are used to a twin airport set-up such as the Haneda and Narita international airports in Tokyo.

*****

Airlines will now race to their best to set-up hub operations. This will pump prime Clark and the national economy. This means not only more jobs and livelihood for local residents but also make good on Clark's stock as a viable investment destination.

While airline executives see Clark's dollarability err, viability, we see more jobs for air and ground crew such as flight attendants, cargo handlers, mechanics and what-have-you.

With DMIA finally getting recognized as the fastest growing airport in the country (it was awarded citations by various groups in the aviation industry abroad!), I join people who, without batting an eyelash, would attribute the success of DMIA to the efforts of CIAC President Chichos Luciano.

Come on, let us give it to the man who knows what he is doing. He himself is an airline executive and has only the best interests of both the industry players and stakeholders of Clark and DMIA in mind. Credit it to the man who, since 2001, has successfully convinced the airlines to come to Clark.

What do you think is the reason why he has remained at CIAC despite first being appointed by former President Gloria Arroyo? The answer is plain and simple: The Aquino Administration needs a man who could make things (continue to) happen at DMIA. The Palace knows for a fact that appointing somebody else to head CIAC could hamper and stunt growth at DMIA.

Luciano actually is in the midst of pushing national interests given the hubbing operations that are taking place.

I am not surprised at all hearing news that he is often called to a meeting with either Lance Gokongwei who calls the shots at Cebu Pacific or no less than Lucio Tan, who could also command Philippine Airlines to renew its interests on DMIA (PAL used to have a reserved 50 hectares at the aviation complex by virtue of a Memorandum of Understanding, if memory serves me right).

While these rich Taipans have to make sure that Clark suits up to their business decisions, Luciano would come out of those meetings counting more aircraft that would dot skies over Clark.

*****

AirAsia Philippines, a partnership among Tonyboy Cojuangco, former TV host Maan Hontiveros (its CEO actually) and businessman Michael Romero, alone is hiring 300 workers this year, increasing this annually by about 100 in the next five years.

This airline is the most aggressive by far if not the boldest in pronouncements. Receiving only its first of four A-320s, Hontiveros said in a press conference two days ago that the airline hopes to launch US-bound flights right from the tarmac of Clark. I have taken twice in the past Asiana's onward connections to the US from DMIA via Incheon International Airport. To have an alternative to that route without the long layovers will better Asiana's offerings.

By the way, this new aircraft of AirAsia will be used to ply Singapore, Macau and Hongkong routes from Clark when it gets clearance. A second brand new A320 will arrive late this year and will be used for Bankok, Incheon, Kalibo and Puerto Princesa.

*****

It is good to see Mr. Ben Manga back in Clark. Manga's experience in the aviation industry (he used to be deputy general manager at NAIA) would do a lot of good in serving as executive vice president of CIAC.

The man would back Luciano well as his chief deputy. That golden top of him has also such kindness and humility while serving this country well. Welcome back sir.