Air Juan targets higher capacity in next 5 years

AIR JUAN Aviation, Inc. (Air Juan) said it plans to increase by fivefold its passenger capacity in the next five years as it aims to double capacity and expand its network.

“[We want to increase the passenger capacity in five years to] times five,” Air Juan President John Anthony Gutierrez told reporters yesterday when asked by how much they want to increase passenger capacity during the company’s fifth anniversary event.

Paolo Misa, Air Juan marketing head, said the firm accommodates around 1,000-1,500 passengers per month, with 20% of the business serving chartered flights.

In line with its planned increase in capacity, the company plans to acquire about 10 new aircraft to add to its current fleet of 11. However, they have yet to identify the aircraft models based on demand. “Once we see the volume is there, we can decide,” Mr. Gutierrez said.

Mr. Misa added that they are also looking at acquiring fewer aircraft but with higher seating capacity, depending on the changes in demand for popular routes.

“Then again, we can’t say that we want 10 more aircraft, [maybe], if it’s a strong route, we can go 19 seats… there are very promising routes,” Mr. Misa told reporters.

Air Juan started its operations of chartered flights in 2012 and started scheduled chartered flights in Palawan in 2014.  It now operates scheduled flights to 22 destinations in the country.

Its aircraft fleet is composed of Cessna Grand Caravan seaplanes and landplanes, as well as Bell helicopters used for chartered flights. It has three designated hubs: Manila, Puerto Princesa, and Cebu.

Mr. Gutierrez said they initially targeted their services to “time-sensitive clients,” many of whom are foreigners both on leisure and business travel, as they bring passengers directly to their destinations without going through the congestion of airports. 

“For those areas without infrastructure to host big aircrafts, we can operate,” Mr. Gutierrez said in a mix of English and Filipino.

Mr. Gutierrez said Air Juan’s most popular route by far is the Manila-Puerto Galera route, which flies nine times a week via Cessna seaplanes, while the “most highlighted route” is the Busuanga, Coron route, which flies directly to popular resorts in the area, including Two Seasons, Busuanga Bay Lodge, and Sangat Island.

“That is pretty much the business model we want to follow in the Philippines,” Mr. Gutierrez said, referring to the model of landing at resorts in famous island destinations in the country.

Mr. Gutierrez also said that in places such as Cuyo in Palawan, a third-class municipality, they mainly serve locals who have urgent needs in more urbanized areas.

“The fulfillment for us is we are able to help the local populace,” Mr. Gutierrez said.

Mr. Misa said that they will be starting a seaplane service from the Mactan International Airport or the South Road Properties in Cebu to fly to island destinations in the province, such as Malapascua Island. They will be launching services to Kandaya Resort in Cebu in October.

Mr. Misa also said that while Air Juan plans to fly to Mindanao and cover many parts of the country in five years, they are treading with caution: “We are careful not to stretch ourselves too much, because safety is a priority of the company… We also want to be careful not just in terms of operations but even in terms of investing. We want to make sure everything we do is or has potential to make profit, eventually.”

Mr. Gutierrez said that they are still in the investment phase of the business. He added that they do not try to compete with large airline companies as they serve to “complement” the services of such firms by bringing passengers directly to specific destinations. — Patrizia Paola C. Marcelo