CIAC continues to offer perks to airlines
The government is continuously offering incentives to local and foreign airline to court them into operating at Clark International Airport (CRK) in order to maximize the capacity of the country’s biggest airport facility.
Aside from meeting airlines every month to convince them to launch flights at CRK, Clark International Airport Corp. (CIAC) president Emidgio Tanjuatco said they are giving discounts and incentives for those who maintain operation at the Central Luzon hub.
“Our dialogue with airline operators is ongoing in order to attract more airlines to fly Clark. But right now, we give discounts or waive some fees like parking and landing fees. We also haven’t charged on air boarding bridges,” he said.
Tanjuatco admitted that the Commission on Audit has already called the attention of CIAC due to the prolonged giving of discounts and waiving of fees.
“We may be losing profit but that’s part of our marketing strategy to make Clark more attractive to airlines,” he pointed out.
Nonetheless, CRK’s passenger volume had been steadily dropping. CRK catered to 1.3 million passengers in 2012, 1.2 million passengers in 2013, and 877,757 passengers in 2014. This is despite the increase in CRK’s capacity to 4.2 million from 2.5 million following the passenger terminal expansion program that concluded last May. Construction of the proposed low cost carrier terminal for CRK would further increase the airport’s capacity by 8 million in 2017 and ultimately to 80 million in 2032.
Particularly, Tanjuatco said CIAC is convincing Emirates to return to CRK after leaving last year. Airasia and PAL Express are also being courted to launch domestic flights at CRK. Airlines currently operating in CRK include Asiana Airlines, Dragon Air, Jin Air, Qatar Airways, Cebu Pacific, Tiger Air Philippines, Tiger Air, and Air Asia Berhad. Air Asia Zest and Emirates have pulled out of CRK last year.
For his part, Transportation Undersecretary Jose Perpetuo Lotilla said CIAC’s efforts to court airlines would be successful even without government’s clear pronouncement on the proposed dual-airport system, a policy to employ CRK and Ninoy Aquino International Airport (MNL) in Manila as the primary international gateways in the country.
“There is nothing written yet on the policy track over the dual-airport system. However, if that is not the policy, then why is government investing on growing Clark?” he stressed out.
“The proof of the pudding is in the eating. We are already doing it, what other proof do they need?” Lotilla added.
Nevertheless, Lotilla admitted that government cannot force airline companies to operate in CRK despite the incentives and the underutilized facilities of the airport.
“Their reasons are economic. Operating out of two airports will mean double operating expense for airlines. What government can do is only to temper them with a combination of gentle nudge and incentives,” he added.
The CRK is considered as the Philippines’ largest international airport in terms of land area, covering a 2,367hectare aviation complex excluding a 2,033-hectare industrial hub.
Aeroports de Paris has estimated that passenger demand at CRK will grow at an average pace of 17.4 percent per year. The French consultant likewise said CRK’s growth will accelerate to an annual increase of 27.1 percent with a total of 4.18 million passengers in 2019 and 36.24 million passengers in 2028.