The Market Monitor Minding the Nation's Business
By Jerry Maglunog
Philippine Airlines (PAL), the nation’s flag carrier, lost $18.7 million, or about P874.8 million, as a result of the preparations for the hosting by the Philippines of the Asia Pacific Cooperation (Apec) summit.
PAL, among four airline companies, had the most number of planes grounded because of the government’s order not to use the Ninoy Aquino International Airport (Naia) days prior to and during the event.
PAL Spokeswoman Cielo Villaluna said all private airlines were not allowed to fly to and from Naia from Nov. 15 to 20.
“PAL’s forgone or lost revenue due to Apec cancellations is approximately $18.7 million. PAL’s gross revenue per day is estimated to be $7.5 million. The airline operates an estimated 260 flights per day.
Close to 700 cancellations for a six-day period represent more or less 2.5 days of operation, Villaluna said.
She added: “We must stress, however, that the long-term benefits of Apec outweigh these aforementioned loses.”
According to Villaluna, a total of 699 flights were not able to depart during the six days of no-fly zone within the four terminals of Naia. Helicopters, seaplanes and chartered flights were also disallowed to fly during this time. Also affected by the no-fly zone were private helicopters and chartered flights to posh resorts like Balesin and Amanpulo, said Civil Aviation Authority of the Philippines Deputy Director-General Rodante Joya.
AirAsia, Cebu Pacific Air and Tiger Airways are yet to release their loss figures, but it was presumed these would not go beyond PAL’s, given that the flag carrier has the biggest fleet among them.