opinion

Ateneo Law School “hangs” 3 SC justices

July 8, 2019

Following tradition, the Ateneo Law Alumni Association, Inc. (ALAAI) the other week “hanged” three sitting Supreme Court Associate Justices in the Justitia – the Ateneo Law School Moot Court. Unveiled and “hanged” for permanent display were the oil portraits of Associate Justices Alfredo Benjamin S. Caguioa, Andres B. Reyes, Jr. and Alexander G. Gesmundo – who were the most recent contributions of the Ateneo Law School to the highest court. Ateneo Law golden jubilarians – led by Lawyer Victor Alimurung and former BIR Commissioner Jose Mario Buñag – had commissioned the painting of the oil portraits of the three Associate Justices, for permanent display in the school’s Moot Court, situated within the Joaquin Bernas Center For Continuing Legal Education. The new oil portraits joined those of other Ateneo law alumni who had earlier been appointed to the Supreme Court. They include those of two former Chief Justices – Claudio Teehankee (16 th Chief Justice) and Renato C. Corona (23 rd Chief Justice) – and ten Associate Justices, namely: Venicio T. Escolin – 1981-1986 Lorenzo R. Relova – 1982-1986 Edgardo L. Paras – 1986-1992 Leo O. Medialdea – 1988-1992 Sabino R. De Leon – 1999-2002 Adolfo S. Azcuna – 2002-2009 Arturo D. Brion – 2008-2016 Roberto A. Abad – 2009 –2014 Mariano C. del Castillo – 2009 – to the present, and Estela M. Perlas Bernabe – 2011 – to the present. Prior to his appointment as 174 th Associate Justice of the Supreme Court, Caguioa served as Acting Secretary of Justice and Chief Presidential Legal Counsel under President Benigno Aquino III. Caguioa finished elementary in Ateneo in 1973, then high school in 1977. He obtained his Economics degree from Ateneo de Manila University  in 1981, and acquired his Bachelor of Laws from Ateneo Law School  in 1985 where he ranked 5th in his class. On the same year he ranked 15th on the Bar Exam and was admitted to the Philippine Bar the following year.   Caguioa’s late father, former Court of Appeals Justice Eduardo P. Caguioa, taught Civil Law at the Ateneo. Reyes is the 177 th Associate Justice of the Supreme Court. He graduated from Ateneo Law in 1976. But before that, he completed Economics at the St. Mary’s College of California and a Masters in Public Administration at the Philippine Women’s University. Reyes previously served as a Prosecutor, then as a Judge at the Metropolitan Trial Court of Makati City, and later as a Judge at the Regional Trial Court of San Mateo, Rizal. He became Associate Justice of the appellate court in 1999. In 2010, he was appointed as Presiding Justice of the Court of Appeals. Reyes is a third generation jurist. His father, Andres C. Reyes, Sr. also served as Presiding Justice of the Court of Appeals. His grandfather, Alex A. Reyes, Sr., was a former Supreme Court Associate Justice. Gesmundo became the 178 th Associate Justice of the Supreme Court. After finishing law in 1984, he immediately started working as a trial attorney at the Office of the Solicitor General. In 1988 he was named Most Outstanding Solicitor. He became Assistant Solicitor General in 2002.  For a time, he was seconded as Commissioner of the Presidential Commission on Good Government. At the time of his appointment to the high court, Gesmundo was Associate Justice of the Sandiganbayan. Gesmundo was an examiner in Remedial Law in the 2009 and 2015 Bar Examinations. Jubilarian (Law ’68) Class Perpetual President Vic Alimurung was ecstatic. He told the attendees: “One can expect that more Law Alumni will also be appointed to the Supreme Court in the foreseeable future. It would certainly do well for us to remember the inspiring words of St. Thomas More, our Law School’s patron, who famously said: “I am the King’s Good Servant, but God’s first.” The “hanging” ritual was witnessed by: Retired Supreme Court Associate Justices Adolfo S. Azcuna, Arturo D. Brion and Spouse Tonette, Roberto A. Abad and Spouse Vicky, Cristina Corona (widow of CJ Renato C. Corona); Mrs. Pier-Angela P. Caguioa Court of Appeals Associate Justices Rodil V. Zalameda and Manuel M. Barrios, Sandiganbayan Associate Justices Ma. Theresa Dolores C. Gomez-Estoesta, Zaldy V. Trespeses and Bayani H. Jacinto; Court of Tax Appeals Associate Justice Erlinda Piñera Uy, Deputy Ombudsman for Luzon Gerard A. Mosquera, The Dean of the Ateneo College of Law – Jose Maria G. Hofileña, ALAAI officers and trustees – Ma. Filomena Legaspi-Rosales (President), Remedios Montecastro Lim (Vice President),Teodoro B. Cruz, Jr.. (Chair), Aleli Angela G. Quirino (Vice Chair), Tranquil Gervacio S. Salvador III, Ramon Torralba, Jr.; Other Ateneo Law golden jubilarians: former Ambassador Alberto “Dodo” Encomienda, retired practitioner and now agri-businessman Manuel “Manny” Jimenez, former Immigration Officer and Assistant City Prosecutor Edgardo “Gary” Mendoza, Lawyer Francisco “Paco” Pangilinan (who planed in from Canada), Lawyer-Evangelist Jose “Joe” Villanueva and this writer.

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Philippine Congress feng shui

July 5, 2019

Yes right in your thinking! Philippine Congress or the Batasang Pambansa Lower House of Representatives has the worst building feng shui that gravely affects Philippine progress let alone prosperity!      Thus far in my several visits to the place whether to attend a State of the Nation Address or do feng shui for congresswoman or congressman, here are the excruciating bad feng shui observations that worsens the poverty of a nation!      Three feng shui booboos that are remediable:      1. Flag pole fronting main entrance door of the main building means the flag or nation itself hinders progression in legislative creation, legislation and execution!      How to remedy? Simply renovate entrance by creating two left and right doors so as not to have a center door facing the Philippine Flag pole. This is also common in municipal or capitol buildings nationwide let alone public schools which necessitate feng shui remedy.      2. Octagon designs abound especially entrance doors to main plenary session hall and the very ceiling design! It connotes stagnancy of the state of the nation in its present democratic anomalies for as long as octagons exist in the halls of the House. Remedy: remove by total renovation of affected areas akin to surgery of cancer tumors or social cancer as it is! Noli Me Tangere??? Ask Jose P. Rizal in your prayers please, not once but twice.      3. Many room hallway walls bear diamond with xs woodwork panels to let in natural light especially in the Batasan Pambansa South Wing Building! These designs attract incessant political envy and intrigues let alone conflicts as well as disharmony. Yes legal and illegal.      Resulting to progress and prosperity delay or thwarting. Remedy: feng shui makeover again via renovation excising or more apt exorcising all these diamonds and x motifs!      That is all folks if we truly care for a united nation, healthy and prosperous under One God, a few feng shui remedies as aforementioned are in parliamentary points of order your honors. If acted upon with dispatch only by then are taxes well spent for the people and their representatives in Congress equally if you know what I mean.      Mabuhay ang Pilipinas, alisin ang mga malas!

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Restaurant key performance indicators to measure success decoded

July 5, 2019

Coming to Cagayan de Oro the first to take over Limketkai Luxe  I needed Improve  your restaurant’s efficiency and increasing profitability depends on various operations, and different cost factors and revenue channels. Drastic measures needed to implemented  as fast we can  but by just , making one change will not suddenly improve your operational efficiency and increase your margins.  You must need to try and evaluate various factors to understand what works for this  restaurant  as well as the market and how you can improve the health of your restaurant business. By tracking your restaurant key performance indicators and measuring them regularly, you can catch the loopholes and identify areas that require improvement.      There are many factors which should be taken into account while judging the performance of your restaurant business. In this article, we will talk about the top 5 restaurant key performance indicators that every restaurant owner should know how to calculate and track regularly. These KPI in the restaurant business are:-      •    Cost Of Goods Sold •    Food Cost Percentage •    Prime Cost •    Gross Profit •    Employee Turnover Rate 1. Cost of Goods Sold      One of the most important “Restaurant Key Performance Indicators,” it refers to the cost incurred to create every food item that you sell to your guests. All you need to do is keep track of your inventory levels at the beginning and end of a specific time duration, and all additional inventory purchases.      I needed to meet all our suppliers  to negotiate  better prices  to increase your profit margins.      How to calculate Cost of Goods Sold:      Cost of Goods Sold = Opening Inventory + Purchased Inventory – Closing Inventory      Say, at the beginning of the month, your inventory was worth PHP 50,000 and you purchased more worth PHP20,000 during the month. At the end of the month, your leftover inventory was worth PHP 30,000. Hence, as per this equation, your cost of goods sold for that month is = PHP50,000 + PHP20,000 – PHP30,000 = PHP40,000. 2. Food Cost Percentage      This is one of the most important item which I needed  on the list of restaurant key performance indicators is ‘Food Cost Percentage.’ It is the difference between the cost of creating a dish (the cost of all the ingredients in a dish) and the selling price of that dish. It means you need to keep updated information on money spent on every item on your menu.      A profitable restaurant typically generates a 28%n-35% food cost, though it depends on a lot of factors like the uniqueness of the dish, restaurant type (QSR or fine dining), and guests’ expectations. For big franchise chains, such as Subway and McDonald’s the food cost is usually lower due to bulk buying.      How to calculate Food Cost Percentage:      Food Cost Percentage = Food Cost / Total Sales      If to prepare your mushroom risotto, it cost you PHP. 70 and you sell it for PHP 450, your food cost percentage will be 15.5%. Understanding this will help you to promote the items on your menu that have a higher food cost percentage and contribute the most to your revenue.  3. Prime Cost      Prime Cost is the total of labour costs  (salaried, hourly, weekly, etc.) and cost of goods sold. It is an important key performance indicator for restaurants as, after food cost, the second largest source of expense is your staff. The  prime cost usually runs 60% to 65% of total sales in a full-service restaurant and 55% to 60% of sales in a quick service restaurant. You might be able to reduce your food cost, thus lowering your overall expenses, but it is probable that the reason behind your losing money on food is because of your inefficient staff.      However, the good news is that you can control your prime cost by managing labor carefully and by investing in restaurant technology that supports streamlined operations through automation.      How to calculate Prime Cost      Prime Cost = Labour Cost + Cost of Goods Sold.      Find your labour-related costs including salaried, hourly, weekly and others. Now, add the sum of your labour costs and your cost of goods sold to arrive at your restaurant’s prime cost. 4. Gross Profit      It is the profit that a restaurant makes after taking into account its cost of goods sold. The gross profit constitutes the money that goes towards reimbursing fixed expenses and profit.      How to calculate Gross Profit      Gross Profit = Total Sales – Cost of Goods Sold      Deduct the total cost of goods sold during a specific time duration from your total revenue (money earned from the sales of food, beverages, and merchandise) to arrive at gross profit. If your restaurant’s total sales for a given month is PHP8,50,000 and the cost of goods sold is PHP 3,25,000, then your gross profit for the month is PHP 5,25,000. 5. Employee Turnover Rate      Another important metric to take into account while tracking the restaurant key performance indicators is your employee turnover rate. It is the percentage of employees that leave that need to be replaced in a given time frame. Along with other industries, restaurant industry acutely faces this problem too. The fast-food industry witnesses the highest level of employee turnover, while fine dining restaurants experience a lower turnover rate.      Restaurants hire the wrong people and have a high turnover rate. An incompetent staff can damage the whole dining experience for your patrons and negatively affect your current and future customer base. Also, hiring new staff and training them to bring them up to desirable levels of efficiency require a lot of time and effort. It is advisable to hire the right people from the beginning and take care of your staff so that they are less tempted to leave.      How to calculate Gross Profit:      Average Number of Employees = (Starting Number of Employees + Ending Number of Employees) / 2      Employee Turnover Rate = (Lost Employees / Average Number of Employees) * 100      Add the total number of employees at the beginning and end of a given time period. Divide the sum by 2 to find the average number of employees during this period. Now, find the employee turnover rate by dividing the number of employees who left/got fired by the average number of employees earlier calculated and multiplying it with 100.      So, if you have 12 employees,  at the beginning of any month and 10 at the end, your average number of employees will be (12+10) / 2 = 11      And, now your employee turnover rate will be: (2 / 11) * 100 = 18%      You should calculate these restaurant key performance indicators on a regular basis, say monthly or bi-monthly. Also, comparing these results with the previous ones, you can identify the problem areas and discover trends, which will help you to be more efficient and profitable.

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Kevin Tan: Family members must be deserving

July 3, 2019

During the open forum in the recently concluded W+B organized event held at Manila Marriott Hotel, I recall hearing the emcee asking my co-resource speaker, Kevin Tan, CEO of public listed holding company Alliance Global Inc. (AGI) several compelling questions extracted from participants. I am highlighting three questions with Kevin’s answers:      Q1: Having worked for close to 20 years in a family led organization like MEGAWORLD CORPORATION, what were the defining moments that you experienced under the mentorship of Professor Enrique Soriano and later from your father Dr. Andrew Tan?      ANSWER: “The first phase of Prof Soriano’s mentorship instilled in me the importance of embracing a Professional/Manager mindset as oppose to an owner mentality. Holistically, I also learned from him operational best practices in the areas like Sales, Marketing, Customer Service, and Leadership and Competitive strategies. You see, Megaworld was a late entrant in the mall development space, so we had to come up with powerful differentiating strategies to grab market share. At that time (post Asian Financial Crisis), my mandate was to turnaround Eastwood City’s commercial unit which was only generating a measly P50 Million a year. And through the years, we have exponentially grown Megaworld’s recurring income stream. To date we are averaging P15 Billion EBITDA.”      “My biggest influence is of course my father. He was there as my beacon, providing me guidance and advise especially in the areas of shared values, global strategy, vision for the future and frequently challenging my ideas without necessarily putting me down. But I have to clarify that I never reported to him. In fact, I reported to a Board where I was toughened by seasoned and strategic minded directors mostly independent directors.”      Q2: What is your advice to visionaries when it comes to hiring family members?      ANSWER: “Just like any professional, there must be entry and exit rules for family members interested to join the business. He or she must be deserving and should embody qualifications befitting a professional:      a.    Full commitment      b.    Must have the credentials      c.    Must be deserving of the position      d.    Must never be hired based on birthright alone      e.    He or She must have something to contribute to the company      When Prof Soriano took me in, I started with a very low pay and worked my way up the corporate ladder. Despite my limited experience, I compensated it with hard work as I knew from day one the consequences of not being able to perform. I strongly encourage business owners not to fall into the trap of making their children report to them. The emotions of being related by blood will eventually compromise the business. The best option is to make your children report to non-family executives. In fact, out of the 4 siblings, only 2 of us are working in the business.”       Q3: Similar to your case, would you also recommend family members having mentors who are professionals?      “Absolutely! There is no doubt that being mentored and trained by professionals is one of the key pillars that have brought me to where I am today. And if not for these executives’ tireless effort in helping my father through the years, the diversified businesses that we currently have in our portfolio would not have been where they are today.      Hiring talented professionals has been my father’s mantra ever since he started his liquor and property business more than 30 years ago. And until now, these professionals have stayed with us. We are extremely confident that we can continue to seize more opportunities as we prepare for the next growth cycle.”      esoriano@wongadvisory.com

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Just wild weather?

July 3, 2019

In the Philippines, we experience the rainy season right now. "Breakthrough" insights into atmospheric dynamics are emerging from "high-maths" —scrutiny of satellite data, say, scientists. Their Nature magazine article identifies "significant connections" between extreme rain events, often far apart. Their premise: global rainfall distribution stems "probably" from planetary waves named after the late Swedish-born American meteorologist Carl-Gustaf Rossby. Just wild weather or is it a climate disruption?      Normally, monsoon rains over northern Queensland last a "few days," says Australia's Bureau of Meteorology. Unprecedented downpours began a week ago, with more forecast and troops sent to a disaster zone. Evacuations have included these residents of Rossela, near Townsville, and German and Swiss tourists plucked from the Diamantina River catchment by a local farmer using his private helicopter.      Indonesia, like much of Asia including the Philippines i.e., weathers annual monsoon rains. Last weekend, the Sulawesi islands counted its toll: at least 70 people were killed as rivers burst their banks and landslides buried village homes. Authorities said a state of emergency would remain in place.      My home country Germany experiences records all-time hottest June temperature. Imagine: the last day of June 2019 has beaten all previous temperature highs for the month. Heat-related deaths have been reported in several European countries. Yes, whole Europe is melting.      A pharmacy sign in Carpentras, a village in southeastern France, which shortly held the country's all-time heat record of 44.3 degrees on Friday. The record was topped again later in the afternoon in the southern village of Villevieille, 100 kilometers (60 miles) to the east, which measured a thermometer-busting 45.1 degrees Celsius (113 Fahrenheit).      Germany set its all-time highest June temperature on last Sunday, with 38.9 degrees Celsius (102 degrees Fahrenheit) recorded in the western state of Rhineland-Palatinate. The country has been baking in an early summer heat wave; however, Germany's all-time high of 40.3 degrees Celsius still stands.      Fifty-seven runners at Hamburg's half marathon were hospitalized on Sunday after many collapsed in temperatures of up to 35 degrees Celsius, officials said. Some 141 runners needed treatment in what fire service officials described as "an emergency with mass casualties."      Temperatures in the country's central Rhine-Main region and into eastern Germany were expected to reach up to 39 degrees on Sunday, according to the German Weather Service (DWD).      Organizers of Sunday's Frankfurt Ironman event made contingency plans to keep athletes from overheating.      As huge crowds gathered in Paris for the annual gay pride parade, firefighters sprayed water on revelers, some of whom used rainbow-colored fans and umbrellas to counter the heat, which was expected to hit 38 degrees.      Heat-related deaths have been reported in Germany and France, mainly among the elderly. At least eight people drowned in bathing accidents across the two countries.      France's new record temperature of 45.9 degrees was set on Friday near the southern city of Montpellier, the Meteo-France weather service said. It is just the seventh European nation — along with Bulgaria, Portugal, Italy, Spain, Greece and North Macedonia — to record temperatures above 45 degrees.      During Sunday prayers in Rome, Pope Francis said he was praying "for those who have suffered the most from the consequences of this heat."      Meteorologists blamed a blast of hot air from northern Africa for the scorching early European summer, but temperatures are set to drop for the remainder of the week over much of Europe.      Drownings and wildfires - the amazing side effects of climate change.The heatwave sparked large blazes including in Spain, where firefighters on Saturday fought wildfires just as they finally contained another inferno after nearly 72 hours.Wildfires burned down several houses and at least 550 hectares (1,359 acres) of land in the south of France as temperatures hit upwards of 45 degrees on Saturday.The blistering heat also claimed the lives of a 17-year-old harvest worker in Spain and a 72-year-old homeless man in Italy.      Just wild weather or climate change? Do you know the answer, my dear readers? +++      Email:doringklaus@gmail.com or follow me in Twitterm Facebook and/or Linkedin or visit my www.germanexpatinthephilippines.blogspot.com or www.klausdoringsclassicalmusic.blogspot.com.

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Center of Asia Pacific Aviation Low Cost Carrier in North Asia Summit Highlights

July 3, 2019

LCCs has been making headlines  over the past 20 years as they disrupted market after market. And ever since, full service airlines have been learning from the often revolutionary methodology applied by the LCC model, in such areas as ancillary revenue as well as operational efficiencies and cost reduction. Equally, as LCCs proliferated and entered new markets, many sought to diversify, creating systems that mimicked their older peers.      CAPA – Centre of Asia Pacific for Aviation looked closely at the industry in North Asia at its CAPA LCCs in North Asia Summit, which had more than ten hours of agenda content. Here’s some insights and observations from delegates during the event at the Radisson Blu Cebu, in the heart of Cebu City. Route development crucial for tourism in the Philippines      Philippine Department of Tourism Undersecretary Benito Bengzon Jr, speaking on behalf of Secretary Bernadette Romulo-Puyat, said the whole aviation industry in the Philippines is working together to pave the way for enhanced connectivity and a seamless experience for passengers. Mr Bengzon noted that route development is essential for the development of tourism for the Philippines, given its archipelago geography. The Philippines has seen arrivals growth of 10.2% p/a for the last three years. According to Mr Bengzon this is faster than international growth to the rest of Southeast Asia, which has averaged 6.3% for the period. The Philippines has a “build, build, build programme” when it comes to airport infrastructure, he added. Philippine CAA believes country is 20 years behind in airport infrastructure      Civil Aviation Authority of the Philippines (CAA) Director General Captain Jim C Sydiongco said the Philippines is “20 years behind in airport infrastructure” and there is a need to enhance connectivity and mobility throughout the country. We are ushering in a “new Philippines” with “affordable airport service” and are entering a “new age” of airport infrastructure and service levels, he said. Excess capacity is a concern in the Asia Pacific region as air transport risks becoming ‘collateral damage’ to global uncertainty CAPA – Centre for Aviation chairman emeritus Peter Harbison said excess capacity is a concern in Asia Pacific. Mr Harbison noted that in a high growth market like Asia it is very difficult to know what the market is going to be like in three or four years. Regional carriers “need to be thinking ahead” he stated. Mr Harbison added that the industry outlook is “uncertain”, stating: “All of us are part of the collateral damage that is being done to the global economy due to the outcome of uncertainty and instability”. This is “gradually and incrementally” becoming a bigger and bigger issue for the airline industry. Air Black Box: Price the key driver of increasing aircraft seat densities      Air Black Box company founder Timothy O’Neil-Dunne said “price” is the key factor that is pushing the increasing seat densities onboard aircraft, and that there will be more pushback on this in markets like the US rather than in Asia. This is due to there being certain expectations already built into the market. Aviation in Asia is in the phase of the “emancipation of the traveller” Mr O’Neil-Dunne said, noting that the market is price sensitive, while US and European airline passengers are used to the standards that were previously offered by full service carriers and have different expectations.      Collins Aerospace: Airlines need to bring in expertise from other industries to harness their data      Collins Aerospace sales director APAC Stephen Robinson said more and more airlines are seeing a need to bring in IT staff from other industries, in order to “harness their data and understand” what the data benefits are. He said airlines are in a “moment of change” concerning the generation of information. Mr Robinson noted that given aircraft renewal timelines, some airlines are stuck with legacy aircraft that are not set up to produce large volumes of operational data, while their newer aircraft are generating very large volumes of information. According to Mr Robinson, airline in the situation have to consider whether to retrofit older aircraft with new digital technologies, which will allow them to pull more useful information from more of their fleet. Kiwi.com: A lot of data in the airline industry is still ‘static’      Kiwi.com head of airline partnerships Marco Van Ieperen said the company sees a lot of data that is “static” in the airline industry. He highlighted the example of airport connecting times, noting Kiwi.com has over 60 data points when calculating minimum connecting times, whereas the industry usually just has a single average time it defaults to. SITA: Airline data is ‘crude oil’ that needs refinement to become useful      SITA vice president – North Asia, Australia, Pacific Islands & ASEAN Growth Markets Sanjeev Kumar said while airlines collect a lot of data, this is not being “harnessed to its full potential”. Mr Kumar said he believes that if data is the “new oil”, for airlines it is still “crude oil” and needs to be refined before it is useful. In addition, the available technology needs to be leveraged properly to produce benefits for passenger personalisation and revenue benefits. LCCs have capability to ‘not only survive but potentially thrive’ in a downturn, but sector remains volatile      Cebu Pacific Air chief executive adviser Mike Szucs said LCCs have the capability to “not only survive but potentially thrive at the expense of others if there is a downturn”. He noted there is “uncertainty out there” with the economic sector and the aviation sector has “certainly been volatile in line with any uncertainty out there in the world”. He described Cebu Pacific as  a “complex” LCC, with a mixed fleet and mixed operational models. Alongside its point to point short haul operations with narrowbody aircraft, the carrier also operates regional services with turboprops and long haul flights with high density widebody aircraft. Peach Aviation will ‘grab the opportunity’ presented with the A321LR      Peach Aviation executive advisor Patrick Murphy said the carrier will “grab the opportunity” with the A321LR, which will arrive at Peach in 2021. Mr Murphy said the A321LR is a “good airplane”, but the “jury is still out” on the A321XLR and the carrier is “not interested in operating low cost long haul”. He said Peach is “growing nicely”, with nearly six million passenger p/a in 2018. Tourism in Japan is a key government policy and there are still “massive growth opportunities”. Mr Murphy noted the Japanese government is encouraging development particularly in regional areas, not just Tokyo. He added that he “want[s] to do with Peach in Asia” what Ryanair has achieved in Europe. Cebu Pacific Air: A321XLR will be a great addition and will put new markets on the agenda      Cebu Pacific Air chief executive adviser Mike Szucs said the A321XLR coming in 2024 will be a “great addition to the fleet”. Mr Szucs said the addition of the aircraft to the carrier’s fleet will “put new markets on the agenda”, including India. He also stated the A321XLRs will not operate out of Manila Ninoy Aquino International Airport, but instead will be based in Davao and Cebu allowing direct international services. Philippines AirAsia: CAB has encouraged airlines to fly outside of Manila      Philippines AirAsia head – government affairs and policy Desiree Bandal said the Civil Aeronautics Board (CAB) has encouraged airlines to fly not just to Manila but to other destinations in the Philippines. She said this encourages growth outside of Manila, which promotes regional development in the form of projects such as hotels. She highlighted Philippines Air Asia “believes in the point to point model”, and we “now fly international destinations from many secondary destinations” and believes in launching more flights from secondary airports. T’way Air: Competition is ‘super intensified right now’      T’way Air senior vice president Hyung Yi Kim said competition in the Asia Pacific is becoming “super intensified right now” with restrictions in slot allocations and a large amount of capacity coming into the market. Spring Airlines: Chinese LCC growth constrained by lack of key resources, primarily slots      Spring Airlines president Zhijie Wang reported LCC penetration is about 10% in the Chinese domestic market and about 14% of international capacity. Mr Wang said he does not think this is going to grow, due to a “lack of key resources”, primarily slots. He explained that Chinese LCCs cannot secure the slots they to expand due to limited airport capacity and pressure from the ‘Big Three’ Chinese mainline carriers. He described the ‘Big Three’ and high speed rail as the biggest competitors to domestic LCCs. Mr Wang said there has been some air travel growth between major cities but “the price is low” due to rail competition. He also noted it is “very hard to change minds” concerning the public perception of LCCs and low cost travel in China. Eastar Jet plans medium haul network expansion and 60 aircraft in fleet out to 2025      Eastar Jet chief executive officer and president Jong Gu Choi said the carrier plans to introduce new medium haul routes as it expands its fleet. Eastar Jet plans to grow its fleet from 23 aircraft in 2019 to 60 by 2025 and expand its route network to 48 destinations over the same period. Cebgo: Philippines still has a long way to go in terms of air travel penetration      Cebgo president and CEO Alexander Lao said the number of air trips per capita in the Phillipines has risen from about 0.2 to 0.5 per person p/a. Airlines have been a beneficiary of strong domestic tourism growth, due to its nature as an archipelago according to Mr Lao. We still have a “long, long way to go” compared to other states such as Malaysia or Hong Kong he said. He described ASEAN open skies is a “relatively slow burn”, and “small little steps have been taken” although the process is a very lengthy one. Mr Lao said he thinks “we are very far away” from ASEAN open skies, but noted that progress has been made.

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