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Business

Open NAIA-3 or expand Clark

- Boo Chanco -
Ate Glue, the President of our Strong Republic, has to make up her mind and show some leadership in the simple matter of having a decent airport. She has to either open NAIA-3 for business or give the green light for Clark Development Corp. (CDC) to expand the terminal building facilities at Clark.

The announcement of PAL last Tuesday that it is acquiring up to 18 Airbus A320 aircraft accentuates the fact that PAL’s NAIA-2 terminal is getting too small for the flag carrier’s increasing needs. The PAL Airbus purchase package includes a firm order for nine brand-new A320 jets and options for five more new A320s valued at approximately $840 million based on list prices.

According to PAL, this new narrow-body aircraft will be deployed mainly on the airline’s extensive domestic network. They will also serve some low-traffic Asian regional destinations. When asked how they plan to cope with increasing passenger volume from their expanded fleet, a PAL official said they will most likely use off-gate parking and bus passengers to the terminal building.

PAL is not the only domestic carrier that is refleeting and expanding operations. Cebu Pacific earlier took delivery of two Airbus 320s, two Airbus 319s and two units of Airbus 319 are arriving this month. They made a total order of 12 Airbus 319s and two Airbus 320s. But because of favorable experience with an increased passenger load on their new Airbuses, Cebu Pacifc officials decided to convert two of the 319s on order to 320s, for a final order of four units of 320s and 10 units of 319s. And they are still stuck with having to use that decrepit Manila Domestic Terminal. 

Compared with their old fleet of DC 9s, Cebu Pacific is reporting a marked improvement in fuel efficiency, up to 30 percent less on their new Airbus fleet. That, and greater on time reliability, is also probably why PAL decided to refleet, even before the completion of their financial restructuring program. PAL officials must have figured that since they have already paid over a billion dollars or half of their restructured debts, the more compelling issue now is competitiveness. Their creditors agreed and allowed them to refleet.

When they both get done, the Philippines would have the youngest fleet in the region, and probably the world. That speaks well of the optimism in our aviation sector, one that is typical in the Asian region. No wonder Airbus is considering opening an assembly facility in China, where they also got an order for over a hundred planes.

This brings us back to NAIA. Of what use is the distinction of having the world’s youngest airline fleet if the principal airport is also one of the world’s most obsolete? If the legal problems surrounding NAIA-3 can’t be resolved soon, Ate Glue should go full steam ahead in getting CDC finalize plans to expand Clark’s terminal facilities.

I bumped into Presidential Assistant Rene Diaz and Tony Ng, CDC president and CEO the other day and I suggested they plan a modular approach to expanding Clark. Diaz said they have to expand anyhow, because the number of international flights arriving at Clark is expanding. They have also just about reached an agreement with Taiwanese special economic zones for some tie-up that should increase interest in Clark and Subic.

So, what are they waiting for? I also think that once the stakeholders in NAIA-3 realize that government has an option in Clark that could make their stake at NAIA-3 less important, maybe some sense could be driven through their skulls that would end the legal impasse. Simply put, the country’s progress cannot be put on legal hold forever. We have to move on, somehow, someway.
RP’s grade schoolers can’t even read
When they are not grandstanding, our congressmen do manage to get an education on the real problems that cry out for attention. In the process of hearing the budget proposal of the Department of Education, some of our congressmen found out that fully 75 percent of elementary school graduates "cannot read independently."

Camarines Sur Rep. Rolando Andaya, who heads the House appropriations committee, said the diagnostic test results of elementary school students submitted by the DepEd to Congress pointed to the "low quality and quantity" of elementary school students. The legislators suggested that DepEd focus its attention and resources on Grades 1 to 3.

How will that work? This means that the teacher, book and classroom shortages in the first three grades will be addressed first. Sounds like a good idea, given our inadequate resources. But does this mean we have given up on the unfortunate ones from grade 4 onwards?

Looks like that’s what’s going to happen. Andaya likened the education system to a conveyor belt. "Only half of those who begin the trip will reach the high school finish line, with 25 percent falling off within three years of coming on board," he said. So he is saying it makes sense to have full concentration on those in the starting line to make sure they make it to the finish line.

I am not sure that simplistic solution is going to help us much. The low quality and quantity of elementary school graduates is caused by a number of problems that have bedeviled the education system through the years, like the lack of classrooms, books and even untrained teachers. Addressing all that takes money, money we don’t have.

Indeed, DepEd officer in charge Fe Hidalgo said the country’s education system would not experience any improvement in services, particularly in meeting the gap in facilities, with such a limited budget. She explained that a large chunk of the DepEd’s budget, or 90 percent, would go to payment of the salaries of around half a million public school teachers.

DepEd would need a P133-billion budget to catch up, and this has to grow by about P8 billion annually until 2015, with an 11-percent increase in the initial year, Hidalgo said. As I suggested in past columns, the private sector must step in and infuse more resources in at least, making sure the brightest of our young people get a good education. We need more of the Centex type of intervention pioneered by Ayala Foundation. And government should give tax credit for such worthy projects to encourage more active private sector involvement.

Our problem in education is very basic – as in being able to read. Let’s not even dream of introducing them to the Internet or other skills needed to get jobs in today’s environment. Educate them to read first.
Coke and the net
Speaking of the Internet, a reader sent me this e-mail that seems to indicate that I had been had by a humor spot and it wasn’t Dr. Ernie E. Oh well… that’s the danger of the net, I guess. No wonder, I thought it was too weird to be true. Here’s the e-mail of Hans Uy with apologies to everyone.

Hi, found your coke article interesting.  I have to alert you on a paragraph you had on it though:

The Internet reveals that Coke has launched a school program that aims to keep kids away from drinking ordinary tap water. "This is an issue of intellectual property," said Soft Drink representative Bob Shruggers. "By drinking water, these pirates are stealing from the hard workers who developed such drinks as Ramblin’ Root Beer, Sprite Tropical Remix, Vanilla Coke, and Vanilla Lemon Coke."

Looks like this was from BBSPOT website.   Called "the world’s greatest tech humour site" by The Register, BBspot creates entertainment for the geekier side of the world. BBspot produces a variety of features like fake news stories satirizing the tech and political worlds, the BBspot Mailbag which pokes fun at the Believers (people who believe our fake news) and much more.
Just once
Here’s Dr. Ernie E.

Richard and Jeannie decided to "go steady". Several weeks later he was quite pleasantly surprised to find she was very adept at sex.

"Have you done this before?" he inquired.

"Yes, but just once," Jeannie replied.

"Oh? And with whom?" Richard asked.

"The Varsity Football Team," she said.

Boo Chanco ’s e-mail address is [email protected]

AIRBUS

AS I

ATE GLUE

AYALA FOUNDATION

BOB SHRUGGERS

BOO CHANCO

BSPOT

CEBU PACIFIC

DR. ERNIE E

PAL

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