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Clark said to be no substitute for Naia



Clark International Airport can not be considered a viable gateway to Manila, at least not in the near future, according to Standard Chartered Bank.

In a research paper, the British bank said that, despite its strong potential, available land for expansion and concrete development plans, Clark International Airport (CIA) may not be a feasible substitute for Ninoy Aquino International Airport in the medium term due to the lack of efficient transportation connectivity.

“We do not think the minimum three- to four-hour drive from CIA to Manila city center is acceptable to the majority of travelers, and building a high-speed rail system to link the two is financially demanding and clearly not on the government’s radar,” Standard Chartered said.

As the main gateway, Naia is expected to remain congested, and dominant players Cebu Air and Philippine Airlines may gain higher airport slot shares, said the Standard Chartered study dated June 21 titled “Philippines Aviation: Infrastructure constraints support incumbents.”

Cebu Air of the Gokongwei group is expected to “outperform” all other carriers and may become “the largest beneficiary of industry consolidation and infrastructure constraints in the Philippines aviation market,” the British bank said.

Regulators from the European Union and the United States are mulling over the lifting this year of safety bans constraining Philippine carriers, and this development will benefit Cebu Air while PAL—the only long-haul carrier in the Philippines—may reserve more capacity for building its international network and reduce operations in the domestic market.

“In the scenario that the ban is lifted, it would make sense for PAL to place more capacity for its international network and build a feeder network for its long-haul business. However, this could be at the expense of its domestic market, which would allow Cebu Air to gain more market share,” the research said.

The study also said that as regulators have indicated that incumbent carriers won’t lose their rights to routes indefinitely unless they are proven to be under-utilizing the routes, the incumbent carriers in the congested Naia would benefit.

The study noted that 2012 was a very challenging period for airlines in the Philippines as capacity growth outpaced passenger growth for a second consecutive year, resulting in bouts of irrational competition and overcapacity in the domestic market.

But the study said conditions had begun to improve by the end of 2012, as year-on-year domestic seat growth was just 9 percent in the fourth quarter of 2012, compared with 18 percent through the first three quarters of 2012, the British bank said, citing data from the Centre for Aviation.

An equity research team from Standard Chartered visited the Philippines recently and spoke to the regulators in charge of aviation security and route approval, as well as officials of Naia and ClA airports. Doris C. Dumlao


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Tags: airports , aviation , Business , Clark International Airport , NAIA

  • upupperclassman

    What Standard Chartered is saying does not need a research paper. It is just simple and plain common sense. For Philippines to build an express train system to connect Manila to Clark may take another century.

  • M C

    Why don’t Standard Chartered Bank just loan me USD10B and I will build the dedicated passenger train to connect Clark with NAIA 3 with stopover/check-in at Malolos and Payanig at Pasig and I will prove that their statements are myopic and just ought to denigrate our growth. This is the very same arguments when they were building the new HK airport in lieu of Kaitak saying there was no train to the city but the new HK airport made money in so short a time. Paging SCB. I can give u a Bank Guarantee if that will suffice for your collateral requirement. Or you can take equity in the venture and I will buy back your equity in five years.

  • M C

    Why don’t Standard Chartered Bank just lend me USD10B and I build the dedicated passenger train connecting Clark to NAIA 3 with stopover at Malolos and Payanig at Pasig? Then, I can prove that their assessment is myopic. This is the very same reasoning when they were building the new airport in HK in lieu of Kaitak when everybody is saying that it is very far and there is no fast train to connect to the city. Unfortunately for those soothsayers, the new HK airport made money in so short a time. SCB can take majority equity in the venture and I buy off their equity in five years. Paging SCB. I can give you a Bank Guarantee if that would suffice to meet your collateral requirement.

  • eight_log

    Sa NAIA pa lang ehhh malaki na ang pagalala na baka mahold up ka along the way ….sa Clark pa kaya na sobra ang layo …. nanakawan ka na ng SCTEX at ng NLEX tapos hoholdapin ka pa ng mga kawatan sa daan …. IT’S NOT FUN AT ALL KUNG ONE IS FULL OF APPREHENSIONS ABOUT HIS/HER SAFETY!!!!!!!

    • tagaDumantay

      Di sumakay ka ng bus at doon ka na lang sa Mega mall mag taxi. Mura ang bus mula Clark hanggang Manila kaysa taxi sa Naia punta sa lugar mo.

  • mekeni62

    Of course it won’t happen especially under Pnoy’s watch. He hates Pampanga.

  • gisingpinas

    4 hours travel i don’t believed. Its 89km only the whole nlex. 1 hour travel only.

    • El_Gran_Capitan

      You’re assuming no trouble in 1 hr travel,

      • tagaDumantay

        And you are also assuming there will be no trouble from Naia to your destination. Only upon reaching MM from Clark the traffic is a factor. In Clark there are still a lot of space to build road to by pass populated area to NLEX.
        Standard Charter estimate of four hours is really erroneous. Fair estimate should be generally 1.5 hours with contingency for a slight traffic.

      • El_Gran_Capitan

        Usually a day before my flight I booked in hot In metro manila as most international airlines that I use depart early morning. In metro manila there’s a lot of hotels and transportation 2 utilize going 2 the airport, how about clark? Is it tbe same? Of cofse not

      • niceguy60

        I’m not from Pampanga but I’ve seen a lot of airports around the world. They usually moved out of crammed cities. Safely is one factor. Expandability is another. Businesses will be distributed eventually. Initial pain in the butt will be there as always. It happened in Hongkong and Munich.

      • El_Gran_Capitan

        Yeah ita true, but you didnt mentioned the infrastractures that sucj countries provided. In the case of clark to manila is there any to warrant it? By the way no one asked uou if you are from pampanga, the fact that you mentioned it means you are from pampanga

  • carlcid

    Ayon, natutulog kasi sa pansitan ang mga planners ng gobyerno! Sana matagal na pinagawa yung transport connectivity with Clark.



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