Airline News
Safety scare reaches the Philippines
May 25th 2015
The Civil Aviation Authority of the Philippines (CAAP) has suspended the air operator’s certificates of domestic carriers South East Asian Airlines (SEAIR) and Magnum Air (operating as SkyJet Airlines) “due to safety concerns,” following recommendations by the European Aviation Safety Agency (EASA). Read More » CAAP director-general, William Hotchkiss, said the suspensions would remain in force until “CAAP is assured that the necessary corrective actions and compliance with aviation safety standards have been undertaken by the airline operators.” SEAIR president, Avelino Zapanta, has called the suspension “premature”, noting the carrier had not experienced any accidents in its 20-year history.
The CAAP’s move follows an April ban on Thai carriers by China, Japan and South Korea after a safety audit by the International Civil Aviation Organization (ICAO) highlighted similar concerns over airworthiness and procedure conformance at several Thai charter and scheduled operators.
Meanwhile, Philippine Airlines (PAL) returned to the black in 2014 with a small $3 million profit, its first since 2011, and should be able to turn a more sizeable profit for full-year 2015 following an $84 million first-quarter net profit as a result of “improved market conditions, aircraft delivery deferrals and lower fuel prices”. PAL has slowed its expansion, with New York, Port Moresby and Quanzhou being the only international additions in 2015. The flag carrier controlled by local tycoon Lucio Tan is still looking for interested parties to sublease a portion of its 15-aircraft A330 fleet, while looking for ways to improve utilization for the frames it will keep. PAL also needs to find a replacement for its six fuel-inefficient A340-300s that currently ply the majority of its transpacific routes. Jaime Bautista, PAL’s president, said the B787 and the A350 are under review, although other sources have suggested PAL should add more B777-300ERs to its fleet of six because of the economies of scale the aircraft provided and its immediate availability.
In other Philippine aviation news, the Philippine government and Mactan-Cebu International Airport are expected to announce significant tax rebates and other discounts ranging from 30-75% for carriers launching long- and medium-haul routes from Cebu, the country’s second busiest gateway, in an effort to help decongest Manila’s Ninoy Aquino International Airport.
