MANILA, Philippines - A spun-off unit of South East Asian Airlines
(Seair) is in talks with potential partners as it looks to fly to
long-haul destinations in the future.
Seair International (Seair
I) wants to fly to the United States, Middle East and Europe in the long
term, said one of its owners, Greek-American Nick Gitsis.
“For
our international component, we are looking for the right opportunity to
fly there. But it's not going to happen tomorrow. Let’s see in a couple
of years. That’s what we intend to do.”
Seair I is a spun-off
unit of Seair. It will take over Seair's so-called missionary routes - a
market shunned by the big local players, which fly to main destinations
like Manila, Cebu and Davao.
Seair I, headed by former Seair
president Avelino Zapanta, is awaiting the issuance of its Air Operator
Certificate by regulators. It is eyeing a commercial launch by the final
quarter of 2012.
The company's plan to fly overseas requires a bigger fleet, which, in turn, calls for huge funds.
"We
do need bigger airplanes to fly to US, Middle East and Europe. That's
why we need partners. The plan right now is all under study. Nothing is
concrete. It's a big venture so we are looking for the right partners,"
Gitsis said.
“At this time we've talked to a couple of people, both international
and local…It depends on what kind of partnership they have to offer,
whether it's a lease in aircraft or they want to come in and take a
stake, we are flexible,” he added.
Getting new investors has been a trend in the capital-intensive aviation industry.
Seair
and legacy airline Philippine Airlines (PAL), for example, struck deals
with investors to help finance their refleeting and modernization
programs. Another player, AirAsia Philippines, is backed by regional
low-cost carrier AirAsia Berhad.
Seair owners sold 40% of the
company to Singapore's budget carrier Tiger Airways for $2.5 million.
PAL, on the other hand, sold a 49% stake to conglomerate San Miguel Corp
for $500 million.
Over the near term, Gitsis said Seair I will focus on expanding local routes.
Seair I currently has 3 Dornier 328s and one LET 410UVP-Es - small
aircraft that fly only to destinations where big commercial planes
cannot land. These destinations include Batanes and Palawan.
Gitsis said Seair I will purchase two more LET aircraft next year to be able to service more of these destinations.
“We
plan to expand the fleet and position the aircraft to service
missionary destinations like inter-Palawan, including Puerto Princesa-El
Nido, Busuanga, Puerto Princesa-Taytay, Puerto Princesa-Cuyo, among
others. We will keep Batanes and also focus on Palawan,” he said.
Long-haul challenges
Among local players, only PAL currently flies to long-haul
destinations such as Vancouver, Las Vegas, San Francisco and Los Angeles
in the US.
It had flown to Europe, but stopped its services there. PAL wants to launch long-haul flights to Toronto and New York soon.
Another player, budget carrier Cebu Pacific, will also start long-haul flights by 2013. It is primarily targeting routes in the Middle East, but also wants to serve US and Europe.
Their plans, like Seair's, face regulatory challenges however.
No Philippine carriers are allowed to mount new flights to any US
destinations on top of exisiting ones since the Federal Aviation
Regulation (FAA) has yet to lift its Category 2 rating on its Philippine
counterpart.
The Category 2 was imposed on the Civil Aviation Authority of the
Philippines (CAAP) for failing to meet international aviation safety
standards.
The European Union followed FAA's verdict on CAAP and banned
Philippine carriers from mounting flights to any European destinations. -
Rappler.com
Source: http://www.rappler.com
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