Home News APEC Summit Brings Over 1 Billion Losses

APEC Summit Brings Over 1 Billion Losses

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Flight Cancellations due to APEC (Asia Pacific Economic Cooperation) summit has created a great impact on the revenues of two of the country’s leading airlines.

Philippine Airlines and Cebu Air Inc. were said to have lost an estimated 1.26billion on revenues due to cancellation of over 1, 500 flights both domestic and international.

The NAIA runway was closed from November 16-20. The Civil Aviation Authority of the Philippines declared a “no fly zone” to give way for “special operations” for the arrival and departure of APEC leaders.

Cielo Villaluna, PAL’ s spokesperson said, “PAL’s foregone or lost revenue due to APEC cancellations is approximately $18.7 million (P860million). PAL’s gross revenue per day is $7.5million.”

PAL has already cancelled more than 700 flights. It operates an estimated 260 flights per day.

“We must stress however, that the long term benefits of APEC outweigh these aforementioned losses,” she added.

On the other hand, according to Cebu Pacific Corporate Affairs officer Paterno S. Mantaring Jr., they lost an estimated P400 million due to more than 680 cancelled flights. He said that this figure may still change as there may be further changes in flight schedules within the week.

Meanwhile, Philippines AirAsia cancelled 186 flights, no figure on foregone revenue yet.

PAL and Cebu Air passengers have the option to rebook their flights without rebooking and penalty charges.F

The two-day APEC summit begins Wednesday.

SourcesThe StandardBusiness World Online

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