Philippine Aeronautics Development (PADC) and a Japanese ground-handling company have reached an initial agreement to establish a new Filipino cargo airline to operate between the two countries, in competition with FedEx.
State-owned PADC has signed a memorandum of understanding with International Airline System Service (IASS) to launch the new carrier early this year. The as-yet-unnamed company will be established in Manila this month as a 51:49 Philippine-Japanese joint-venture concern .
"We're now in the process of finalising details to set up the corporation," says IASS president Soen Chiyokawa. "We're in a hurry to get this project going and want to be airborne by April."
The Philippine Government has approached the Japanese authorities to revise the bilateral air-services agreement, to allow the new carrier to start up. Apart from FedEx's overnight Tokyo-Subic Bay service, only Nippon Cargo Airlines operates a once-weekly service to the Philippines.
According to Chiyokawa, there is more than enough room for an additional operator. He claims that the air-cargo market between Japan and the Philippines grew by 150% in 1996. He acknowledges, however, that the new company is likely to face opposition from flag carrier Philippine Airlines, which is also to develop a cargo service.
The new carrier plans to fly thrice weekly between Manila and Tokyo's Narita Airport, via Mactan, and will operate a direct service once or twice a week. It is negotiating a one-year wet-lease for a McDonnell Douglas DC-10-30. Japan Airlines (JAL) is to provide sales, marketing and maintenance support, says Chiyokawa.
JAL, in the meantime, will launch a joint freighter service with Malaysia Airlines from Penang to Tokyo's Narita Airport and Osaka's Kansai from 14 January.
Source: Flight International
