CLARK FREEPORT - The Clark International Airport Corp. (CIAC) is set to remit more than P38 million to the national coffers, an executive of the government-run airport operator announced on Wednesday.
CIAC’s dividend declaration due to the national government and CIAC stockholders amounted to P76,353,879.12 which is equivalent to 50 percent of its annual net earnings.
From this amount, CIAC will remit to the National Government through the Bureau of Treasury total dividends amounting to P38,176,939.56 or half of the 50 percent annual net earnings, Alexander Cauguiran, CIAC President and CEO, said.
“CIAC’s well-crafted plan plus a results-oriented leadership amounted to millions of pesos in remittances. President Duterte’s resolve and call to shift (airline) operations from Manila to Clark has bore fruit as we will now be able to remit the dividends pertaining to the years 2014 and 2015,” Cauguiran added.
Pursuant to Section 3 of Republic Act 7656, all government owned and controlled corporations (GOCC) are required to declare and remit at least 50 percent of their annual net earnings as cash, stock or property dividends to the National Government.
From 2014 to 2016, CIAC incurred negative retained earnings and was exempted from declaration and remittance of dividends to the National Government.
The revised Implementing Rules and Regulations of RA 7656 stipulates that GOCCs with net income but have negative retained earnings may be exempt from declaring and remitting dividends upon proper request to the Secretary of Finance for exemption.
Since President Duterte assumed the presidency in July 2016, the growth in airport operations and management of the aviation complex led to the increase in cash flow.
CIAC’s net income in 2014 totaled P45.5 million, P29.7 million in 2015, and P77.4 million in 2016 for a total of P152.7 million.
During these years, CIAC incurred negative retained earnings, otherwise known as retained earnings deficit.
Clark International Airport (IATA Code: CRK) currently has 134 international flights and 104 domestic flights weekly and passenger traffic is projected to reach 1.5 million by end of 2017.
China Eastern Airlines, China's second largest carrier by passenger numbers, will begin its Clark-Shanghai flights on October 18, while JetStar’s Clark-Singapore flights will start on November 18.
Philippine Airlines will also add Tagbilaran, Bacolod and Cagayan de Oro among its flights to and from Clark this year.
The CRK’s new terminal-building, which can accommodate eight million passengers annually, is scheduled to be finished by the first quarter of 2020.
Cauguiran said the project is spearheaded by Secretary Tugade and BCDA President Dizon.