GMA okays more passenger, cargo flights to Subic

President Arroyo has approved increased passenger and cargo flights to the Subic Bay International Airport to attract more tourists, especially from Korea, China, and Taiwan, as well as transport the freeport it into a warehousing hub.

The President also ordered the Subic Bay Metropolitan Authority to prove an "opposition senator wrong" in saying that "smugglers" were lurking in the freeport as well as in Clark Field, Pampanga and the Batangas port.

The President was apparently referring to Sen. Sergio Osmeña who said smuggling was rampant in these areas and not in the 168 mall in Divisoria, Manila raided by Customs officials recently.

SBMA administrator and chief executive officer Armand Arreza said the President was not able to include the Subic Bay International Airport in Executive Order No. 500 seeking to accelerate the expansion of commercial passenger and cargo air services to the Diosdado Macapagal International Airport (DMIA) in Clark.

In EO 500, the President directed the country’s air negotiating panel to initiate talks with Singapore, Malaysia, Thailand, and Korea to increase international flights to the DMIA to address the growing demand for budget air fares and put the facility in full operation.

"We told her she forgot Subic in the order," he said.

Arreza said the SBMA board decided to lower aeronautical fees by up to 80 percent not only to increase flights but also to encourage more airlines to open offices inside the freeport.

Press Secretary Ignacio Bunye said that with a recent executive order declaring DMIA as a development route for passengers and cargo, passenger flights at the airport jumped from only five per week to 46 this month.

Clark Development Corp. president Tony Ng said these are expected to increase to 75 flights per week by December 2006, with a corresponding 450 percent increase in passenger volume.

Cargo flights would experience a similar increase, he said.

The new fees in Subic will take effect April 1. Arreza said shipping fees will also be reduced to make the Subic port more competitive.

The President hailed the SBMA’s decision, saying lower fees could also benefit exporters hurting from the peso appreciation.

At present, Mandarin Air offers flights to Taiwan, Cebu Pacific to Incheon in South Korea, and Air Philippines to Hong Kong.

"Many tourists fly directly to Subic but the fees are prohibitive. The (SBMA) board passed a resolution to lower landing fees since we can earn back from tourists’ spending while inside the freeport," Arreza said.

"There are also other airlines that want to come in. Mandarin Air will have additional flights. And the good thing about Subic being a freeport is even restricted nationals like Chinese, Pakistanis, Indians, and Taiwanese can stay there because it’s visa-free for 14 days," he said.

Arreza said there is no need for them to get out of Subic since their safety and security are ensured and that the attractions and hotels are available right after they get out of the airport.

"You have all the activities there. So that will be very good for our tourism industry," he said.

On shipping fees, Arreza said the rates would definitely be lower than Manila’s by five to 10 percent.

The President and Arreza said it was good to make Subic a warehousing hub since the goods could be moved in and stored freely inside the freeport.

"As long as these are not contraband, (they) can be (flown in or shipped) into the freeport," Arreza said.

Arreza said the problems on smuggling would come in when traders transport goods, equipment, vehicles and other products out of the freeport.

The President said Customs officials should be on guard "at the doors of Subic."

"There is the Task Force Subic and the Customs. That is an old perception now (Subic being a smuggling haven)," Arreza said.

Mrs. Arroyo said smuggling cases should not derail the government’s plan to make Subic and Clark warehousing hubs.

Customs Commissioner Napoleon Morales has been appointed as the new head of the country’s anti-smuggling task force.

In a statement, Bunye said Morales "has the full backing of the Palace in going after smuggling syndicates and corrupt officials and personnel" of the bureau.

"The President has made it clear to Commissioner Morales that there are to be no sacred cows in this all-out effort to fight smuggling," Bunye said.