Philippines 1st low-cost carrier terminal to rise in Clark

MANILA, Philippines — The Philippines expects its first low cost carrier terminal (LCCT) to rise in Clark by 2020, which could attract more services from existing and new foreign budget carriers.

In its latest analysis, aviation think tank CAPA Center for Aviation said the new terminal being constructed at Clark would likely become the country’s first LCCT.

“Construction of a second terminal is underway at Clark International Airport outside Manila. The terminal will likely become the first LCCT in the Philippines when it opens in 2020,” CAPA said.

“Developing the second new terminal as an LCCT is sensible, given that LCCs will likely account for at least 60 percent of Clark’s traffic in future. The existing terminal should be large enough to accommodate full service airlines – even if FSC traffic at Clark triples,” it added.

Full service carriers (FSC) currently account for approximately 1.2 million annual passengers at Clark, according to the aviation think tank.

Meanwhile, LCCs account for 51 percent of total seat capacity in the Philippines, and LCC penetration rate at Clark alone stands at 50 percent.

CAPA said the LCC penetration rate at Clark would likely exceed 60 percent by the time an LCCT opens because both Philippine LCCs – Cebu Pacific and Philippines AirAsia – are planning to expand in Clark.

“The opening of the LCCT in 2020 would drive further LCC growth at Clark as it will provide lower fees and charges,” it said.

“Clark’s large and growing domestic network should help attract more foreign airlines – both low cost and full service. Long haul low cost services particularly need feeder, which Clark is now able to offer. The opening of the LCCT could lead to more services from the existing foreign LCCs and the launch of services from several new foreign LCCs, including long haul LCCs,” CAPA added.

The tandem of Megawide Construction Corp. and GMR Infrastructure Ltd. of India is undertaking the construction of the new terminal building after it bagged the engineering, procurement and construction contract in December last year.

The new terminal is expected to accommodate up to eight million passengers per year, increasing Clark Airport’s capacity to 12 million passengers per annum by 2020 from four million at present.