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“Your Gateway to the World”

PRIVATE SECTOR WISHLIST CLARK INTERNATIONAL AIRPORT

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TO DEVELOP CLARK INTERNATIONAL AIRPORT INTO A VIABLE PASSENGER AND LOGISTICS HUB

WHAT ACTION POINTS MUST THE GOVERNMENT IMPLEMENT?

WHAT CONTRIBUTIONS CAN PRIVATE SECTOR ENTITIES LIKE ECOZONE LOCATORS, AIRLINE OPERATORS OR LOGISTICS COMPANIES PROVIDE?

WHAT ROLE SHOULD THE PRIVATE SECTOR PLAY IN THE DEVELOPMENT OF CLARK?

WHAT ROLE SHOULD THE PHILIPPINE GOVERNMENT PLAY IN DEVELOPING CLARK?

WHAT ROLE SHOULD CLARK PLAY IN THE PHILIPPINE’S OVERALL AVIATION INFRASTRUCTURE?

TO DEVELOP CLARK INTERNATIONAL AIRPORT

INTO A VIABLE PASSENGER AND LOGISTICS HUB

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AVIATION

MANUFACTURING

REAL ESTATE

TRANSPORTATION/LOGISTICS

TOURISM/HOSPITALITY

NGOs

PUBLIC

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GOVERNMENT’S ROLE IN DEVELOPING PH AVIATION INFRASTRUCTURE AND CLARK

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1993 Clark Air

Base re-opened

1995 Clark International Airport was

designated to be the future primary

international gateway of the Philippines

2003 Development of North

Railway System to Clark eyed

2007 Twin

airport concept

for Clark

complementing

NAIA

2004 P215M

apron, ramp rehab

at DMIA completed

2010 NAIA to be

sold and Clark to

become a single

international gateway

2012 Clark not to

be developed until

NRT is in place

PHILIPPINE GOVERNMENT PROCLAMATIONS

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DEATH BY STUDY

CIAC Clark Civil Aviation Complex comprises an area of 2,367 hectares

November 2008 - Korea international Cooperation Agency (KOICA)

conducted the feasibility studies for the DMIA Master Development Plan

March 2011 - Metro Pacific Investments Corp. (MPIC) commissioned

Madrid-based Indra Group to conduct a feasibility study

May 2011 - JICA conducted the Greater Manila Airport Study, to assess

how the Diosdado Macapagal International Airport in Clark can

complement the operation at NAIA

July 2012 - DOTC allots P100M for Clark International Airport study

T H E P H I L I P P I N E S R I S K S WA S T I N G T I M E A N D R E S O U R C E S I T

D O E S N O T H AV E B Y N O T D E V E L O P I N G C L A R K - T h e M a n i l a T i m e s , O c t o b e r 2 0 1 2

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CATEGORY 2 STATUS

January 2008 - After a failing grade in Significant Safety Issues (SSI),

United States Federal Aviation Administration (FAA) downgraded the

Philippines' rating to Category 2 from Category 1

Philippine Airlines lowers targets after FAA downgrade and prohibited

local airlines from expanding operations in the U.S.

April 2010 - European Union, following the FAA's lead, banned Philippine

carriers from flying to Europe

June 2010 - Important navigation equipment at the Manila airport

maintained by CAAP failed

November 2012 - Civil Aviation Authority of the Philippines (CAAP) will

remain in Category 2 status as it has again flunked a review conducted

by the International Civil Aviation Organization (ICAO)

L O S T TO U R I S M A N D E C O N O M I C O P P O R T U N I T I E S

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COMMON CARRIERS TAX (CCT)

The Philippines is the only country that levies taxes on airlines

Foreign airlines ceased operations in Manila due to imposition of CCT

British Airways, Lufthansa (Germany); Alitalia (Italy), Swiss

International Airlines, Scandinavian Airlines, Sabena and Air France

(KLM)

December 2012 - The Senate approved Senate Bill 3343 that seeks to

remove taxes imposed on foreign carriers to help attract more tourists

into the country

At least seven foreign carriers are set to open, resume or add flights to

the Philippines once the government scraps airline levies

Lufthansa/Swiss Airlines, Singapore Airlines, Cathay Pacific, Delta

Airlines, Etihad, KLM, Kuwait Airlines, and Qatar Airlines

C C T R E M O VA L W I L L T R A N S L AT E TO A N A D D I T I O N A L

$ 1 B I L L I O N I N E X P O R T E A R N I N G S F O R T H E P H I L I P P I N E S - T h e P h i l i p p i n e S t a r

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CEBU PACIFIC CASE STUDY

January 1974 – PAL becomes a monopoly in domestic air travel after President

Ferdinand Marcos (by virtue of his powers under Martial Law) ordered the

foreclosure and absorption of two other airlines – Filipinas Orient Airlines (FOA)

and Air Manila Inc. (AMI)

PAL had a near-monopoly on the domestic aviation market two decades ago but

has since been overtaken in number of flights by Cebu Pacific (CEB)

CEB currently operates 10 Airbus A319, 20 Airbus A320 and 8 ATR-72 500

aircraft. Its fleet of 38 aircraft – with an average age of 3.6 years – is largest and

youngest aircraft fleets in the Philippines. It flies to 32 domestic and 19

international destinations

CEBU Pacific outstrips PAL with a recorded 48% market share in terms of

domestic cargo from January to September 2012

The Philippines currently has the world’s highest domestic LCC penetration rate

at nearly 80%, a big jump from 10 years ago when it was only 29%

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PRIVATE SECTOR WISH: PH AVIATION INFRA

A CLEAR AND ENUMERATED PLAN FOR THE

COUNTRY’S AVIATION INFRASTRUCTURE

TIMELINE FOR IMPLEMENTATION OF PLAN

EXECUTION OF PLAN

ACHIEVE CAT 1 STATUS

REPEAL COMMON CARRIERS TAX

LIBERALIZATION AND COMPETITION

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PRIVATE SECTOR ROLE

WHAT CONTRIBUTIONS CAN PRIVATE SECTOR

ENTITIES LIKE ECOZONE LOCATORS, AIRLINE

OPERATORS OR LOGISTICS COMPANIES

PROVIDE?

WHAT ROLE SHOULD THE PRIVATE SECTOR

PLAY IN THE DEVELOPMENT OF CLARK?

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AIRLINE

CARRIERS

STAKEHOLDERS

MRO

MANUFACTURES

AVITION

TRAINING

REAL

ESTATE

DEVELOPERS

CARGO/

LOGISTICS

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AIRLINES (CLARK)

EIGHT (8) BUDGET/LOW COST AIRLINES

WHO DECIDED TO HUB IN CLARK:

LEGACY CARRIERS:

CLARK IS NOW CONNECTED

TO THE WORLD!

DRAGONAIR

Hong Kong-Clark

CATHAY PACIFIC

USA & Middle East to Hong Kong

AIRASIA

Australia to Kuala Lumpur & Clark

ASIANA

U.S.A & Australia to Incheon, Korea

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MRO FACILITIES (CLARK)

2ND HANGAR FOR WIDE-BODY AIRCRAFT

AND 3RD HANGAR FOR AIRBUS A380 AIRCRAFT

TO BE CONSTRUCTED WITHIN THE YEAR

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FLIGHT TRAINING SIMULATION

P2.1-BILLION PHILIPPINE

ACADEMY FOR AVIATION

TRAINING (PAAT)

A 50-50 JOINT VENTURE

BETWEEN CEBU PACIFIC

AND CANADA’S CAE INC.,

ONE OF THE WORLD’S

LEADING AVIATION

TRAINING SUPPLIERS

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MANUFACTURING

Manufacturing commercial aircraft interior components and sub assembly parts for the

parent companies, jamco america and jamco corporation, known as world-wide leaders

in aircraft interior design and modification.

Jamco america is a premier supplier of airbus and boeing aircraft interior engineering

services and products. Jamco has been a key player in the aerospace business for

more than five decades, with operations around the globe.

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LOGISTICS

13X PER WEEK (TAIPEI

& SHENZHEN) FEDEX

TECHNICAL STOPS

13X PER WEEK (TAIPEI

& GUANGZHOU

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REAL ESTATE DEVELOPERS

SERVICE ORIENTED ENVIRONMENT CONDUCIVE TO DOING BUSINESS-ONE-STOP-SHOP.

DEVELOPMENT OF HOTEL AND CONVENTION CENTER (MICE), TOURISM

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Taiwan

Vietnam Thailand

Malaysia

Singapore

Brunei

China

Korea

Japan

Dubai WHAT ROLE SHOULD

CLARK PLAY IN THE

PHILIPPINES’ OVERALL

AVIATION

INFRASTRUCTURE?

Clark

PH AVIATION & CLARK

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Clark

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Clark

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Clark

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Clark

DUBAI

CLARK

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FLIGHT ROUTES

AFRICA – 22 DESTINATIONS

ASIA – 31 DESTINATIONS

AUSTRALASIA – 34 DESTINATIONS

EUROPE – 32 DESTINATIONS

AMERICAS – 11 DESTINATIONS

MIDDLE EAST – 17 DESTINATIONS

147 GLOBAL DESTINATIONS

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CATCHMENT BASIN

1st Phase - Airport Lounge, Airport Shuttle

Services, Drop off and Pick up

2nd Phase – City Air Terminal, Security

screening of baggage, airline check–in, baggage

drop and handling

Located at the Trinoma Mall, which is

accessible by public modes of transportation

such as MRT, bus, PUJs and private vehicles

1 hour drive via Mindanao avenue provides

easier access and more convenience for CRK

passengers from Manila and South Luzon

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COMPARISON: NAIA - CIA

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CIA MASTERPLAN

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PRIVATE SECTOR WISH: CIA

RECOGNITION OF TWIN AIRPORT CONCEPT AND

CIA DESIGNATION AS AN ALTERNATIVE

INTERNATIONAL GATEWAY

IMMEDIATE DEVELOPMENT OF TERMINAL AND SUPPORT FACILITIES TO

KEEP UP WITH AIRPORT GROWTH AND DEMAND

COMMITMENT FOR FUTURE DEVELOPMENT OF THIRD PARALLEL

RUNWAY

THE GOVERNMENT SHOULD BE A TRANSPARENT REGULATOR, RISK

SHARER AND A SOURCE OF INCENTIVES TO ATTRACT PRIVATE SECTOR

PARTNERS TO SUPPORT THE DEVELOPMENT OF CLARK

CLARK SHOULD BE VIEWED AS BOTH ENHANCING THE CONNECTIVITY

OF THE CITIZENS WITHIN THE PHILIPPINES AND BOOSTING THE

GLOBAL COMPETITIVENESS AS AN FDI AND TRADE DESTINATION IN

ASIA

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ZERO SUM VS. NON-ZERO SUM

FURTHER DEVELOPMENT AND UTILIZATION

OF CLARK IS A WIN-WIN FOR THE COUNTRY

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ZERO SUM VS. NON-ZERO SUM

FURTHER DEVELOPMENT AND UTILIZATION

OF CLARK IS A WIN-WIN FOR THE COUNTRY

Terminal Capacity : from 2.5 Million to

4 Million passengers per year

Estimated Project Cost: Php 360 Million

Fund Source : loan from bank Estimate

Project Completion: Year 2013

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UNCERTAINTY LEADS TO LESS INVESTMENT

AND MISSED OPPORTUNITIES

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THANK YOU!