Airphil adds Clark to growing list of hubs

Airphil Express has unveiled plans to add the Diosdado Macapagal International Airport to its growing number of secondary flight operation hubs, in anticipation of growing competition from both local and foreign budget carriers.

In an interview with the Inquirer, Clark International Airport Corp. president and CEO Victor Jose Luciano said the Lucio Tan-owned airline had also decided to farm out some of its operations to the international air gateway north of Metro Manila partly because of its ongoing “expansion binge.”

“They have seven [Airbus A320] aircraft at present, and they have six more A320s coming until 2012,” Luciano said. “Because of this, they see Clark as an alternate to Manila.”

The CIAC chief pointed out that Airphil Express’ move to add DMIA—located in the former Clark Air Base in Pampanga—was also prompted by the growing congestion at the Ninoy Aquino International Airport in Pasay City.

NAIA has two runways running perpendicular to each other, with the shorter one limited to servicing domestic flights and light aircraft.

DMIA, on the other hand, has two parallel runways, each 3.5 kilometers long, which can accommodate simultaneous takeoffs and landings.

Despite this, DMIA remains largely underutilized as an airport, in part because of its small airport terminal, and the lack of a high-speed rail link with Metro Manila.

Nonetheless, Luciano pointed out that Malaysian budget carrier AirAsia had already chosen DMIA as the hub for the operations of its Philippine unit, adding to Southeast Asian Airlines and Cebu Pacific Air, which already have aircraft flying out of Clark.

Airphil Express senior vice president for sales and marketing Alfredo Herrera also said that adding Clark to the roster of hubs from which the carrier operates will help it compete more effectively with its market rivals.

“We know that Manila is already congested,” Herrera said. “We’re gearing up to compete and we’re trying to catch up, but we don’t want to further add to the congestion.”

“Clark will be very strategic to us going forward,” Herrera added.

In marketing Clark to potential client airlines, CIAC describes the location as a “catchment area” for the large population living north of Metro Manila.

“The total population that Clark serves is about 25 million, so this is a very big market for the airlines,” Luciano said. “It’s a logical move for a company like Airphil Express.”

Under the memorandum of agreement that both parties are set to sign Friday, Airphil Express will start basing at least one aircraft in Clark starting Oct. 1, 2011, with the option to add one aircraft per year over a 10-year period.

The carrier may, however, accelerate this schedule depending on the market’s takeup of its services.

Apart from flying domestic routes, the airline also intends to fly regional routes from Clark in the near future.

Luciano said that he wants Airphil Express to help develop the market for regular flights between Clark and Cebu City, and eventually to other major cities in the south like Davao and Cagayan de Oro.

The CIAC chief is also encouraging Airphil Express to serve the Clark-Korea route to take advantage of the large Korean population in Central Luzon.

“Eventually, they may also decide to fly to regional destinations like Hong Kong, Macau and Singapore, from Clark,” Luciano said.