Foreign airlines bullish on RP economy

Foreign airline companies are optimistic that the Philippine economy is strong enough to support a steady increase in travel, especially within the region.

Industry leaders said airlines were counting on the expansion of intra-Asean trade that has been leading more people to consider neighboring countries as extensions instead of just foreign destinations.

According to Cathay Pacific Airways’ Philippine country manager Adrian Harley, the airline has increased the frequency of its Hong Kong flights out of Cebu City to handle existing demand and in anticipation of future growth.

Despite projections of an economic slowdown, Harley said Cathay Pacific remains optimistic about the market and increasing frequency would also work as an instrument to actually spur growth.

"In the airline industry, more flights encourage more travel," Harley said. "It is a balance between meeting existing demand and creating more demand in the future."

Before its decision to increase flight frequency out of Cebu, Cathay Pacific flew four times a week from Mactan to Hong Kong, catering mainly to passengers and cargo originating from the southern Philippines.

Although there were no immediate plans to add new destinations in the Philippines, Harley said there would be enough growth in the future to add even more flights from both Manila and Cebu, possibly including more direct flights to traditional destinations like the Mainland US.

According to Harley, Hong Kong itself was also becoming a major destination for tourists, instead of just a transshipment point to other destinations.

Cathay Pacific, is helping develop Hong Kong as a major hub, complemented by the opening of a new airport as well as the development of various tourist attractions that have successfully drawn visitors to the island.

Harley said the airline’s objective was to target regional markets, such as the Philippines which he said continued to be one of the most important economies in the region.

"In this business, the key is to make traveling easier for the travelers," Harley said. "If traveling is easy, it will encourage more people to travel and travel more."

Cathay Pacific is in the process of expanding its fleet and plans to add 11 aircrafts this year to increase its operating fleet to 78 aircraft by the end of 2001.

The airline is also considering adding more destinations after it started passenger services to India’s capital, New Delhi.