AIRLINES SUFFER USD TWO-BILLION LOSSES FROM APEC SUMMIT

Manila, Philippines, 7 Sfahar 1437/19 November 015 (MINA) – Local and foreign airlines, including private aircraft and chartered planes, lost an estimated $2 billion in revenues following the cancelation of over 1,000 flights at the Ninoy Aquino International Airport (NAIA) for the Asia-Pacific Economic Cooperation (APEC) summit from Nov. 16 to 20.

An airline industry expert said the most affected were the budget airlines.

The expert said that most of the airlines are covered by insurance but the low-cost carriers are the hardest hit by the cancellations as they could not rebook their passengers immediately nor book them in hotels, Mi’raj Islamic News Agency (MINA) quoted Philstar News as reporting.

Philippine Airlines spokesperson Cielo Villaluna said the airliner lost an estimated $18.7 million. PAL’s gross revenue per day is $7.5 million.

PAL operates some 260 domestic and international flights daily and the close to 700 cancelled flights are equivalent to two and a half days of operation, Villaluna added.

“We must stress, however, that the long term benefits of APEC outweigh these aforementioned losses,” Villaluna added.

Cebu Pacific (CEB), through its corporate communications unit, said the airline lost an estimated P400 million in revenues due to flight cancellations during the APEC summit.

“CEB is expecting more changes in flight schedules within the week, as this figure may still change,” the firm said.

Local airline companies cancelled some 1,800 domestic and international flights from Nov. 16 to 20 following the temporary runway closures to give way to the arrival and departure of leaders of APEC member-economies.

Air Asia Philippines said it cancelled 74 domestic and 10 international flights from Nov. 17 to 20 due to temporary closure of the NAIA runway.

Other international airlines also cancelled various flights or re-scheduled their departure and arrivals.

Airport observers said that the cancellation of flights from Manila to other places in the country had affected tourist arrivals in the provinces. (T/R07/R01)

Mi’raj Islamic News Agency (MINA)