Cebu Pacific on track to hit 20 M passengers

 Economy
Jul 282016
 
Cebu Pacific on track to hit 20 M passengers

MANILA, Philippines – Budget carrier Cebu Pacific is on track to achieve its 20 million passenger volume target for the year after carrying over 10 million passengers in the first semester. In a statement, Cebu Pacific said passengers flown from January to June were higher by nine percent year on year. On average, the airline’s flights were 87 percent full during the period. For June alone, the Cebu Pacific Air group served 1.6 million passengers, up eight percent from the 1.5 million passengers flown in the same month in 2015. Cebu Pacific attributed the higher passenger volume to popular domestic destinations in the Visayas and Mindanao such as Kalibo, Tacloban, Siargao and Tagbilaran. In terms of international short haul destinations, Cebu Pacific saw strong demand in China, Taiwan, Hong Kong, Singapore and Japan. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Long-haul passengers to and from destinations in the Middle East and Australia, likewise contributed to the higher passenger volume during the first half. “We are very proud to share with you that since Cebu Pacific’s inception in 1996, our passengers now number more than 130 million and counting. These promising figures encourage us to cater to the growing travel demand not just in Manila, but throughout our six strategic hubs nationwide,” said Paterno Mantaring, Cebu Pacific vice president for corporate affairs.  “We are optimistic that with the support of relevant airport and government authorities, we can continue offering our trademark lowest fares to even more Filipino travelers in Read More …

New DOE task force focusing on debt-ridden power coops

 Economy
Jul 282016
 
New DOE task force focusing on debt-ridden power coops

MANILA, Philippines – The Department of Energy (DOE) has formed a task force to resolve debt issues of ailing electric cooperatives (ECs), particularly of debt-ridden Albay Electric Cooperative (Aleco). DOE spokesperson Pete Ilagan said the task force is composed of the DOE, the National Electrification Administration (NEA) and the local government units (LGUs). He said the task force would determine whether government would step in through NEA, the government agency mandated to provide total electrification on an area coverage basis as it pursues the rural electrification program. “NEA’s step in powers is just there to help improve the situation to make the EC viable. It is government’s way of assisting a utility, which is performing a public service. So if the task force sees public service is undermined because of some financial problems or management problems, it will be given attention through financial aid or through strengthening the management capability,” Ilagan said. Among ECs, Aleco is one of the ailing ECs for failing to meet financial and operational parameters, even after a year San Miguel Corp. (SMC) took over its management in 2013. SMC renamed Aleco as Albay Power and Energy Corp. (APEC). Ilagan said Aleco’s financial and management aspects will be scrutinized by the task force. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We need to know the situation right now to determine how it got into that situation,” he said, noting the DOE had already ordered the task force to make a report. “We also have Read More …

Suspension of BIR audits

 Economy
Jul 272016
 

“The only thing that is constant is change,” said Heraclitus, a Greek philosopher who insisted on ever-present change as being the fundamental essence of the universe. Our new President Rodrigo R. Duterte ran and won on a platform advocating change. He vowed to reform the Bureau of Internal Revenue (BIR) which he specially mentioned as one of the most corrupt government agencies and which he initially wanted to be abolished.

Revival of Manila-Calamba cargo rail service eyed

 Economy
Jul 272016
 
Revival of Manila-Calamba cargo rail service eyed

MANILA, Philippines – Manila Electric Co. subsidiary MRAIL Inc. and the International Container Terminal Services Inc. (ICTSI) are considering reviving a plan to build a P10 billion container rail service to provide more efficient movement of goods and help decongest ports and roads. MRAIL is also interested in undertaking the Mindanao Rail project mentioned by President Rodrigo Duterte during his first State of the Nation Address (SONA). Ferdinand Inacay, president and CEO of MRAIL, told reporters yesterday that the company together with ICTSI intends to pursue the proposed railway project. The railway service from Manila to Calamba, was operated by ICTSI from 1998 but was suspended in 2002. Under the proposal, the first phase involves reviving the connection from Manila to Calamba by linking  Manila International Container Terminal and Laguna Gateway Inland Container Terminal,  both operated by ICTSI. For the rail service, MRAIL will own the trains which will use the tracks of the Philippine National Railways for a fee. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The rail service involves the rehabilitation of the existing PNR tracks, restoring the Tutuban to the Port of Manila tracks that traverse through the center of C.M. Recto Ave., and the construction of the stabling yard in Calamba for the container trains. Inacay said it would take two years to implement the project from contract signing and start of rehabilitation work. He said they are hopeful their proposal would be approved and rehabilitation works could start by the fourth quarter this Read More …

EastWest gets green light to go into financial leasing

 Economy
Jul 272016
 
EastWest gets green light to go into financial leasing

In a disclosure to the Philippine Stock Exchange (PSE), EastWest said the BSP has approved its proposed P100 million initial equity investment in a wholly owned financial leasing company subject to regulatory conditions set by the bank regulator. File photo MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has given East West Banking Corp. the green light to venture into the financial leasing business. In a disclosure to the Philippine Stock Exchange (PSE), EastWest said the BSP has approved its proposed P100 million initial equity investment in a wholly owned financial leasing company subject to regulatory conditions set by the bank regulator. EastWest said it has a pending application with the Securities and Exchange Commission (SEC) for the registration of the proposed financial leasing company. “We shall inform the Exchange as soon as we receive approval of the registration of the financial leasing company by the SEC,” the bank said in the disclosure. As early as 2014, the bank owned by the family of the late Andrew Gotianun announced plans to venture into the finance leasing business to complement EastWest’s core lending activities. The bank’s profits jumped 31 percent to P789.6 million in the first quarter of the year from P600 million in the same quarter last year on the back of sustained double-digit growth in its core businesses. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Net interest income surged 32 percent year-on-year to P3.6 billion, driven by robust growth across the different business units: consumer, business Read More …

PAL offers special Saudi Arabia flights

 Economy
Jul 272016
 
PAL offers special Saudi Arabia flights

PAL decided to operate the special flights to Mecca as it expects Muslims from the Philippines to take part in the Hajj or yearly Islamic pilgrimage. File Photo MANILA, Philippines – Flag carrier Philippine Airlines (PAL) is offering special flights to the Kingdom of Saudi Arabia next month to cater to those taking part in the annual Hajj pilgrimage to Mecca. In a statement, PAL said the special flights would run from Aug. 15 to 24. The special flights , utilizing the Airbus A330, will depart Manila and fly non-stop to Medina in Saudi Arabia. From Medina, the pilgrims will then go to Mecca which is Islam’s holiest city. PAL decided to operate the special flights to Mecca as it expects Muslims from the Philippines to take part in the Hajj or yearly Islamic pilgrimage. The Hajj is a mandatory religious duty that must be carried out by all adult Muslims at least once in one’s lifetime. PAL expects majority of the passengers taking the special flights to come from Southern Philippines. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We are heeding the clamor of our Muslim brothers and sisters for a convenient link to a destination in the Middle East which will serve as their gateway to Mecca. PAL looks forward to be their official carrier as they fulfill this annual religious tradition,” PAL president and CEO Jaime Bautista said. For Pilgrims who wish to return to Manila via PAL, they will need to travel from Mecca Read More …

DMCI ventures into low-cost housing

 Economy
Jul 272016
 
DMCI ventures into low-cost housing

MANILA, Philippines – Diversified engineering conglomerate DMCI Holdings Inc. plans to venture into the low-cost housing sector as part of its new growth strategy, its top official said. DMCI chairman Isidro Consunji said the company has “the scale, resources and expertise to deliver quality homes” for low-income and lower middle class families. Consunji said the housing units would be offered at a price lower than the company’s current product offerings which average about P3.5 million. “As a new decade begins for our company, we see a reshaping or our growth strategy,” Consunji said. Apart from the housing project, Consunji said DMCI would also be pursuing more renewable energy projects. “Our goal is to build an energy portfolio that has an optimum blend of conventional and sustainable energy,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Consunji said the company was also looking at developing new businesses that would complement and boost existing investments. “To generate high value projects for our core business, we will strengthen our collaboration with industry leaders through fair pricing and exceptional service,” he said. DMCI is currently one of the country’s most diversified conglomerates with interests  in power, water, mining, infrastructure, and property. The group recorded a consolidated net income of P12.8 billion last year, up 19 percent from P10.8 billion the previous year.

BSP sees sustained demand for term deposits

 Economy
Jul 272016
 
BSP sees sustained demand for term deposits

BSP Governor Amando Tetangco Jr. said the weekly auction of seven- and 28-day term deposits through the TDF would remain oversubscribed due to ample liquidity. File photo MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) said it expects sustained strong demand from investors for the term deposit facility (TDF) amid the robust liquidity in the country’s financial system. BSP Governor Amando Tetangco Jr. said the weekly auction of seven- and 28-day term deposits through the TDF would remain oversubscribed due to ample liquidity. Tetangco also cited the delay in the normalization of interest rates by the US Federal Reserve. Yesterday’s auction remained oversubscribed as tenders for the seven-day term deposits reached P54.07 billion or 5.4 times the issue size of P10 billion while offers for the 28-day term deposits amounted to P131.08 billion or 3.27 times the offer size of P40 billion. Both tenors fetched a rate of 2.50 percent. The TDF has been oversubscribed since the first auction last June 8 as part of the shift to the interest rate corridor (IRC) framework. “This is not unexpected. We will continue to see such oversubscription, with ample liquidity and as the prospect of a Fed hike in near term remains slim or uncertain,” Tetangco said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Last week, the central bank decided to raise the volume being offered at the TDF to P70 billion starting August. The facility would comprise P10 billion worth of seven-day term deposits and P60 billion worth Read More …

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