MacroAsia gets go signal for Cebu special economic zone

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THE government has given MacroAsia Corp. the go signal to convert its two parcels of land within the Mactan-Cebu International Airport (MCIA) into a special economic zone.

In a disclosure to the stock exchange on Tuesday, MacroAsia said the Philippine Economic Zone Authority (PEZA) has approved its application for the development of a special economic zone in Lapu-Lapu City, Cebu.

“The five-hectare property is to be known as the MacroAsia Cebu Special Ecozone as approved and designated by His Excellency, Rodrigo Roa Duterte, President of the Philippines,” the company said.

MacroAsia currently runs the only special economic zone at the Ninoy Aquino International Airport in Pasay City. Lufthansa Technik Philippines (LTP) operates from the special economic zone.

In its quarterly report filed last August, MacroAsia said LTP is set to begin construction of a new wide body hangar in the MacroAsia Special Ecozone this year. The hangar is expected to be completed and used by December 2019.

MacroAsia reported its net income fell 18% to P551 million in the first six months of 2018.

“The lower reported net income in 2018 is mainly due to one-off non-operational accounting provisions in 2018 pitted against one-off reversal of provisions for insurance items in 2017 as booked by LTP. Stripping away these non-operational line items, MacroAsia’s 1H18 results showcases the strong operational growth of the group,” the company said in a regulatory filing.

MacroAsia expects a “stronger” second half performance for its key business units, targeting a 20% “organic” growth this year.

“MacroAsia believes that it is still poised to grow its annual 2018 results substantially in the second half of 2018, as its ground handling company saw the servicing of 8 new airline accounts in the first half of this year, and is also starting its concessions in Terminal 2, Mactan Cebu as the terminal became operational this July,” it said.

LTP, which is 49% owned by MacroAsia, is also seen to grow after it took over line maintenance for PALExpress Airbus planes starting July. This brought the planes being maintained for the Philippine Airlines (PAL) group from 62 in the first half of 2018, to about 77 by yearend.