Cebu Pacific orders new planes to serve more destinations

By Virgil B. Lopez

Thursday, June 16, 2011

BUDGET airline Cebu Pacific has ordered 37 Airbus jets for $3.8 billion, the largest single aircraft order ever made by a Philippine carrier.

The order will allow the company to mount flights to destinations such as "Australia, India and Northern Japan," Cebu Pacific president Lance Gokongwei said on Thursday.

Once delivered, the company will have 30 new Airbus A321neo (New Engine Option) and seven A320 aircraft, Gokongwei added.

"The 220-seater A321neos, the first of its type to operate in the Philippines, will be a real 'game changer' for Cebu Pacific...the A321neo will have a much longer range...[since] it is a larger and longer-haul version of the familiar Airbus A320," he said.

All 37 aircraft, which will be delivered between 2015 and 2021, is separate from an earlier order of 18 Airbus A320 aircraft to be delivered from the second half of 2011 until 2014.

As a result, these transactions increase Cebu Pacific's total orders of Airbus aircraft to 55.

At present, Cebu Pacific has 24 international destinations in China, South Korea, Brunei, Indonesia, Malaysia and Thailand

Records from state-run Civil Aeronautics Board (CAB) showed that international passenger traffic jumped by 12.44 percent to 14.01 million last year compared with the 12.46 million in 2009.

Flag carrier Philippine Airlines (PAL) flew 3.9 million people in 2010 from 3.4 million the previous year, while Cebu Pacific carried 2.06 million passengers, up by 26.4 percent from 1.63 million in 2009.

As a result, Cebu Pacific has doubled its Manila to Incheon (Seoul) services, making it twice daily last January.

It also added thrice weekly flights to its Manila to Bangkok services, making it a 10 times weekly service last February.

Gokongwei earlier set a 25-percent annual growth for its international operations and 10-15 percent for its domestic division.

Philippine Airlines to buy new planes as well

For its part, flag carrier Philippine Airlines (PAL) said it also placed an order for four new Boeing-777 planes at an undisclosed cost.

Joey de Guzman, PAL vice president for corporate communications, told Sun.Star that two of these jets will arrive next year and the rest will be delivered by 2014.

"We also have four A320s coming for the next two years to augment current fleet. Beyond 2014, I still don't have any information," he said.

Cebu Pacific currently utilizes 33 brand-new aircraft, 25 of which are from the Airbus A320 family and eight ATR turbo-prop aircraft. By 2021, the airline will more than double its fleet and triple its capacity.

The 15-year-old airline plans to carry over 12 million passengers this year from 10.5 million in 2010.

Shares of Cebu Pacific, whose profits doubled to P6.92 billion in 2010 from P3.26 billion in 2009, closed at P86.85 apiece on Thursday, up 2.18 percent from Wednesday's P85. (Sunnex)

Cebu needs more international hotels: Hauri

By Katlene O. Cacho

Thursday, June 16, 2011

CEBU City needs more international hotel chains to operate here to elevate its image in the international tourism market, an official of the Hotels, Resorts and Restaurants Association of Cebu (HRRAC) said.

HRRAC president Hans Hauri said the presence of international hotels in Cebu helps promote the province to the global market. He said it gives Cebu the edge in attracting international tourists.

“We have always wanted to promote Cebu in the global market, one thing that would help us do that is the presence of more international hotels here,” said Hauri, the general manager of Marco Polo Plaza Cebu and recently-appointed area manager of Marco Polo hotels in the Philippines.

For this to be realized, Hauri said the industry needs more investors who are willing to bring in international brands.

“We need investors who’d pay for the construction of these branded hotels,” he said.
Among international hotels that operate in Cebu are Marco Polo, Radisson Blu, Movenpick, Imperial Palace and Marriott.

Aside from increasing the number of international hotels, Hauri also said that the hotel industry should also double its efforts in marketing Cebu to fill in the growing number of rooms in Cebu.

He said the entry of new players in the industry affected existing hotels. About 700 new rooms were added to Cebu’s existing 6,000 rooms, a 12 percent growth.

“Suddenly, customers got confused,” he said.

Hauri reported that starting the middle of March, room occupancy among all hotels started to level off. He cited the Japan tragedy and other issues that caused the drop in occupancy.

Industry rates within city hotels stood at an average of 52 percent. Marco Polo’s occupancy rate was at 64 percent as of end of May, as opposed to the year-ago levels of 60 percent occupancy for city hotels and 68 percent for Marco Polo.

But with the intense competition in the market, and with the continued opening of hotels in the city, Hauri said the industry should intensify promotions for Cebu.

He said Cebu should accelerate all its tourism infrastructure development to capture all markets, including the Mice (Meetings, Incentive, Conference and Exhibition) market.

For Cebu to get ahead of the competition, Hauri said the industry should take advantage of the open skies policy and ensure safety in the sky. He said the government needs to solve the country’s aviation safety status the soonest.

The Federal Aviation Authority (FAA) downgraded the Philippines to “category 2” from “category 1” in 2008 after a safety audit in November 2007, preventing Philippine carriers from expanding operations into the US. The Philippines had been in “category 1” since 2002 prior to the downgrade.

“We need to protect our airline as this is our lifeline to our survival and economic prosperity,” he said.

Published in the Sun.Star Cebu newspaper on June 17, 2011.

Treasure the leisure

Tuesday, 07 June 2011 19:49 Air Urquiola

Together with the growth of the local real-estate industry has come the sophistication of property buyers in knowing what they want and finding the best value for their money. Apart from purchasing primary residences in the city, more and more Filipinos are getting into secondary homes or leisure properties as well. The pervading thought is that of a “working investment”—a store of value or money that they could actually enjoy or actively make use of in the present. Rewards are seen not only in the material or financial sense, but in health, wellness and precious time spent with family.

Once only the pastime of the well-to-do, owning a leisure home can no longer be considered an expensive hobby. Developers such as DMCI Homes are making this opportunity possible. It has brought its expertise in condo development to the leisure market with such projects as Alta Vista de Boracay, a midrise residence right in the heart of the famous tourist destination in Aklan.

DMCI Homes is committed and it is one of the most successful developers in targeting a niche market. Its mantra is to provide uplifting dwelling choices apart from the usual crowded vertical communities that other developers persuade growing families to fit into. DMCI Homes’ more spacious and well-built condo properties are a growing preference for the hardworking, double-income families that comprise the majority of the Philippine population today.

Not surprisingly, DMCI Homes has forayed into a leisure development along the same commitment—a leisure condo that elevates the usual vacation experience into a virtual “home away from home” atmosphere, for families who wish to enjoy a comfortable and private down time. There has never been a better time than now for Filipino families to start investing in leisure properties. Why?

DMCI Homes’ Alta Vista de Boracay is a leisure development that has arguably achieved a hard-line proposition in offering the ultimate location—right in the heart of the most popular tourist destination in the country. The vistas from Alta Vista de Boracay’s condo units are of the precious white-sand shore and the surrounding fairways in the distance. Located at the northern part of Boracay at barangay Yapak, Alta Vista de Boracay has convenient access to the shorelines of three popular Boracay beaches: White Beach, Puka Beach and Punta Bunga Beach.

Condominium developments brought to leisure locations have revolutionized the market tremendously. A beachside condo unit has become a very viable alternative to buying a bare lot and constructing one’s own beach house. Just imagine the cost (or virtual impossibility) of constructing a beach house along Boracay’s shores, compared to owning a piece of the action with a unit at a residential development such as Alta Vista de Boracay. Condo residents also enjoy property management services, compared to hiring caretakers and security.

Alta Vista de Boracay, for instance, has its own clubhouse with facilities such as a lounge, a spa, an entertainment room, a game room, and recreational facilities and activities for the enjoyment of both kids and kids at heart. Other amenities include a pool and Jacuzzi, landscaped surroundings including pocket gardens, and others.

With the help of such developers as DMCI Homes, living the leisure lifestyle once thought of as impossible for the middle-market segment is now a reality.

Log on to www.altavistadeboracay.com.ph or www.dmcihomes.com for more information.

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In Photo: Alta Vista de Boracay has its own clubhouse with facilities such as a lounge, a spa, an entertainment room, a game room and recreational facilities.

Megawide bags P1.5-B Belle contract

Wednesday, 01 June 2011 18:17 Miguel R. Camus / Reporter

MEGAWIDE Construction Corp., a listed building contractor partly owned by billionaire Henry Sy, has bagged the contract to construct the succeeding phases of Belle Corp.’s casino complex rising within the Manila Bay reclamation area.

In a statement on Wednesday, Megawide said the P1.5-billion contract includes the construction of structural and civil works for the two hotel towers, four condotels and a casino.

Megawide was also tapped to build the first phase of the casino project, to be called Belle Grande Manila Bay.

“Once completed, the luxurious resort-casino project [on] Manila Bay will be the biggest and expected as the most exciting hotel and casino complex in the country. The casino will make available almost 20,000 square meters of gaming space,” Megawide said.

Belle, a listed leisure real estate developer controlled by the Sy family, said the casino’s “soft opening” is scheduled in the second quarter of 2012.

“Megawide believes its top-of-the-line formworks system from Meva of Germany is perfect for the project with a high floor-to-ceiling height. Meva’s formworks system is known in the international construction industry to cater to high ceilings of buildings and structures,” the company said.

The company reported earlier that first-quarter net income surged 200 percent to P104.1 million, while total revenues doubled to P1.35 billion.

Megawide shares closed flat at P8.75 each on Wednesday’s trading.

The builder’s clients include SM Development Corp., Antel Group, Bench Group, Prince Jun Development Group, Bellevue Hotel Group, Malate Bayview Group, Goldland Properties and Dynamic Realty, among others.

SM Devt. reports ‘strong’ sales

Thursday, 09 June 2011 19:26 Miguel R. Camus / Reporter

SM Development Corp. (SMDC), the listed condominium developer of billionaire Henry Sy, is seeing stronger- than-expected sales, giving rise to the possibility that the company will hike its full-year profit forecast to meet its original target, a top official said.

SMDC earlier said it expects net income to reach P4 billion in 2011, or a third higher than 2010, but this target was subsequently lowered by 20 percent amid concerns that the Philippine economy will slow down this year.  

In a chance interview with reporters, SMDC chief operating officer Rosaline Qua said sales in the first five months were ahead of the record during the same period last year.

“It’s fair to say we are slightly above [target]. We are beyond what we expected in the first five months,” Qua said at the sidelines of an SMDC-sponsored sales event in Pasay City.  

In response to a query on whether SMDC will hit its original P4 billion profit forecast, Cua said: “We are quite optimistic we should be able to [reach] that [goal]. But it is also very guarded.”

Cua said the sales uptick was supported by an increasing number of buyers abroad after the company stepped up its overseas marketing efforts. Overseas-based Filipinos still account for a fifth of total sales, Cua said, although there is potential for this figure to grow further.

“I think Filipinos are all the more seeing the need to invest [in real estate]. There is a shift there,” she said.

SMDC earlier said that it is spending up to P17 billion to launch five new projects in Metro Manila, including under its MPlace brand, which caters to the affordable segment. New projects, the company said, would help it beat last year’s record when it sold 10,000 units.

SMDC reported that first-quarter profit rose 45 percent to P916.3 million, while revenues rose 70 percent to P3.4 billion. Revenues from real estate operations jumped by 69 percent to P3.3 billion.

Cua said the company is still evaluating an earlier-announced share offering that would widen its public float to 25 percent from the current 16 percent. SMDC shares declined 0.89 percent to P8.90 each on Thursday’s trading.