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Cebu Pacific’s goal: 300M passengers flown by 2022

CEBU PACIFIC is targeting to reach 300 million passengers flown by 2022 as it works on increasing capacity and improving its network.

Candice Jennifer A. Iyog, vice president for marketing and distribution of the budget carrier, told reporters last week the new target is in line with the company’s earlier announced objective of reaching 200 million passengers by 2020.

“It’s a goal that we’ve set for ourselves — 300 millionth by 2022,” she said.

The Gokongwei-led carrier hit its 150 millionth passenger milestone in 2017, and ferried an additional 20 million passengers last year. It is aiming to fly another 22.5-23 million passengers by the end of 2019.

Ms. Iyog said in order achieve the company’s targets, Cebu Pacific is “upgauging” its fleet, or replacing smaller aircraft with bigger ones that could carry more passengers.

“There’s an upgauging on the aircraft… If we have slots right now that’s operated by a 180-seater, and we replace it with a 436-seater, that’s where the growth will be coming from, based already on the aircraft deliveries that we have scheduled,” she said.

Cebu Pacific is ramping up its fleet to have 83 aircraft by end-2022 from 71 aircraft as of end-2018. This will be comprised of eight units of Airbus A330s, 18 A320ceos (current engine option), five A320neos (new engine option), seven A321ceos, 27 A321neos, 16 ATR 72-600 and two ATR CF.

Aside from upgauging, the company is also adding more frequencies to its flights in gateways where congestion is not an issue, such as in Clark and Cebu.

“It’s going to be a mix of either more frequencies or larger aircraft… It’s connecting existing dots in our network,” Ms. Iyog said.

This means Cebu Pacific will link its other hubs to destinations where it is already flying. For example, it already operates flights to Narita from Manila and Cebu, and will be opening a new flight from Clark going to Narita as well. This Clark-Narita route is scheduled to launch next month.

“As we go along and grow those routes, and take delivery of more brand new aircraft, we’ll grow in the other hubs,” Ms. Iyog added.

In the first quarter, the carrier’s listed operator Cebu Air, Inc. recorded a 138.4% year-on-year increase in net income to P3.43 billion. This was driven by a growth in passenger volume during the period and higher average fares.

It is allocating about P27.1 billion for capital expenditures this year, to be used mainly for the acquisition of additional aircraft. — Denise A. Valdez

Gov’t was defending PHL’s competitiveness with SoT veto — Dominguez

THE government was protecting the Philippines’ competitive position as an investment destination, Finance Secretary Carlos G. Dominguez III said late last week when asked about President Rodrigo R. Duterte’s veto of the Security of Tenure (SoT) bill Thursday night.

“This SoT bill has to protect our competitiveness. You know whatever they do, they have to remember also that the Supreme Court (has ruled that) promoting the interest of labor does not mean destroying capital or management,” Mr. Dominguez told reporters on the sidelines of the Banker’s Night on Friday held at the Bangko Sentral ng Pilipinas (BSP) headquarters.

Mr. Duterte vetoed the bill on July 26, just a day before it was due to lapse into law.

Mr. Dominguez concurred with National Economic and Development Authority (NEDA) Secretary Ernesto M. Pernia’s view that the bill then awaiting the President’s signature needed to be “tweaked” to achieve a balance between workers’ and investors’ interests.

Mr. Dominguez described the veto as an opportunity to reconsider and improve the competitiveness aspect of the bill.

Asked if the veto was a good thing, Mr. Dominguez replied: “I think so. I mean the veto doesn’t mean don’t do it, the veto means you think about it again.”

Before the veto, labor groups like the Trade Union Congress of the Philippines (TUCP) had reminded the President of his campaign promise to end all forms of labor contracting.

“While the bill mostly codifies into law existing rules, regulations, orders and jurisprudence on matters of labor-only contraction and security of tenure, it likewise unduly broadens the scope and definition of prohibited labor-only contracting, effectively proscribing forms of contractualization that are not particularly unfavorable to the employees involved,” the President said in his veto message read.

“‘You just improve the competitiveness of the Philippines, and make sure that it is even-handed. Because you know you have three elements — labor, capital, and management. Everybody’s role has to be enhanced simultaneously, hindi pwedeng (it cannot be) one or the other,” Mr. Dominguez said. — Beatrice M. Laforga

Palay farmgate price still falling in early July

THE Philippine Statistics Authority (PSA) said the average farmgate price of palay, or unmilled rice, fell 0.6% week-on-week in the first week of July to P17.78 per kilogram (kg).

In its weekly price update, the PSA said, the average wholesale price of well-milled rice fell 0.1% week-on-week to P39.26. At retail, it also fell 0.1% to P42.81.

The wholesale price of regular-milled rice fell 0.1% week-on-week to P35.40 during the period. At retail, the price fell 0.2% to P38.51.

The price of domestically-grown rice had been falling due to the threat of competition from cheaper foreign grain, imports of which were liberalized this year under the Rice Tariffication Law.

The farmgate price of yellow corn grain fell 0.6% week-on-week to P13.91 per kg. The average wholesale price fell 0.3% to P18.24, but the retail price increased 0.3% to P23.81.

The average farmgate price of white corn grain rose 0.1%, week-on-week, to P16.12. The average wholesale price fell 0.8% to P21.63, and the average retail price also declined 0.8% to P28.52. — Vincent Mariel P. Galang

Multi-brand store focuses on Japan style

THE Japanese seem to have a golden touch when it comes to design and manufacturing. If one looks at examples of Japanese design, the result is almost always intuitive, as if they have read the customer’s mind. The little touches they add, and a deep understanding of ergonomics solve problems people didn’t even know they had: for example, knife handles with certain angles that allow for cutting in any direction, or else rounded corners in simple objects like toasters so as not to seem obtrusive (or painful when one hits their hand against it). They have a skill in taking something foreign — like jeans or whiskey — and improving upon it, making it seem even better than the original.

@Tokyo, a new concept store that combines several Japanese brands under one roof, focuses on brands that have a certain expertise in design.

There are classic brands present in the mix — household names like Casio and Seiko — but then there’s cult favorite bag brand Anello (which can function both as a tote or as a backpack), a feminine version of which can be found in Legato Largo. Karuizawa Shirts makes shirts, obviously; and Accessories Blossom offers all sorts of costume jewelry at prices P300, P500, and P700.

Then there is a bag brand called Mis Zapatos (Spanish for “my shoes”), which features bags printed with a design of a person’s clothed legs, and their matching shoes. OWNDAYS, which made waves in the local optometry market when it entered the country a few years ago, is also under this store’s umbrella; and speaking of umbrellas, the store also carries Waterfront, a brand of Japanese umbrellas that come with all sorts of innovations (so many that the flagship store in Japan has four floors devoted to umbrellas that come with with flashlights, can fold flat, and etc).

So what is it in the Japanese psyche which drives them to create, and create excellently? We asked several people at the @Tokyo opening at The Podium at the Ortigas Center about Japanese ingenuity and the aforementioned skill for borrowing and then improving upon a product.

Takeshi Yoshida, president of Carrot Company Co., Ltd. which owns Anello — responded through an interpreter: “They want to see the customer happy. We are always looking for what they want, what they need. We also listen to what they need and want. We’re trying to match their needs — it’s not like we just want to do this or that. We’re trying to do everything they need.”

He said that Anello (the Italian word for the growth rings on trees) bags were created to fit every occasion, hence their versatility. People use them as daytime totes, gym bags, laptop bags, or even diaper bags, most of the variations sharing that tote-cum-backpack aesthetic.

Katsuyoshi Hirano, Executive Director for Estelle Holdings Co., Ltd., which owns Accessories Blossom, shared a thought meanwhile, that perhaps points to the Japanese closeness to nature. His interpreter said, “He calls this a green lawn or the green garden. He wants the customers, who are butterflies, to flock and enjoy.”

Masazumi Tsukada, International Marketing Dept. Manager for Flex Japan Inc., which owns Karuizawa Shirts, meanwhile, pointed to his jacket during the interview, even making a point of taking it off and folding it neatly thanks to their innovation of taking away the bulky lining, giving ease of movement and comfort. Karuizawa Shirts started in 1940 with white shirts, while the jacket Mr. Tsukada folded was created about 10 years ago. He claimed Karuizawa Shirts pioneered the jacket’s design (it has since been copied, as this reporter was wearing a cheaper, similarly unlined jacket during this interview).

The jacket is made from extra-light polyester. “Maybe you think polyester is cheap,” said Mr. Tsuakada, but he pointed out that their material is similar to that used in sports uniforms, thus allowing for more flexibility, quick sweat absorption and drying, and is wrinkle-free. It is sort of how Coco Chanel pioneered the use of jersey for her dresses and suits, when jersey was once used to make cheap underwear.

Speaking about how these innovations reflect on Japanese culture, he said, “The Japanese have a culture where they want to keep improving, and to triumph in what they are making.” While customers may already be satisfied, “The Japanese want to achieve even higher.”

“In Japanese craftsmanship, the customer might say, ‘this is okay,’ or ‘this is good’; but if the craftsmen aren’t satisfied, they won’t sell.”

LUXURY CONNECTION
The @Tokyo stores, located in Uptown Mall, One Bonifacio, Market! Market!, Estancia, and the Podium, share ownership with luxury watch distributor Lucerne. Vohne Yao, director in both companies, points to the things other than the luxury watches they bring to the country: there’s Steinway pianos, Baccarat crystal, and Leica Cameras.

“The idea is to be more of a diversified retailer. That’s what we are — our core is in retail.”

The brands in @Tokyo have items for as low as P300 to as high as P14,500. Speaking about how the brands they brought in fit within their luxury portfolio, Mr. Yao said, “We want to be more present in the mid-price segment now.” — Joseph L. Garcia

BoE seen to hold rates as clouds gather over outlook

BANK OF ENGLAND (BoE) officials will probably keep policy on hold this week as they acknowledge that the economic outlook has worsened materially since May.

All but one of the 24 economists surveyed by Bloomberg predict a unanimous vote to maintain the benchmark rate at 0.75%. The risk of a no-deal departure from the European Union under new Prime Minister Boris Johnson and an increasingly gloomy global outlook suggest that policy makers will be cautious.

Officials have scaled back their rate-hike rhetoric and investors are increasingly pricing in rate cuts as the risk of a disorderly Brexit grows.

But with a falling pound and stronger wage growth threatening to fuel inflation, officials potentially face a dilemma. Governor Mark Carney is expected to address the trade-off between growth and prices after the BoE publishes its quarterly Inflation Report, alongside the monetary-policy decision, at noon on Thursday.

Economists are virtually unanimous in predicting the BoE will cut its 2019 growth forecast, with around half predicting a downgrade to the following two years. Officials are also widely expected to hike their inflation projections.

Policy makers have softened their language about the possibility of interest-rate increases. Michael Saunders, who led the charge for the BoE’s last two rate hikes, has suggested he’s in no rush to begin another push, telling Bloomberg the economy right now is “clearly not overheating.”

Chief Economist Andy Haldane, also considered among the more hawkish members of the Monetary Policy Committee, said in a speech this week that the case for keeping policy unchanged is strong and the group should proceed with caution on any loosening.

Carney has also warned that damage to the global economy from rising protectionism could be significant and require a major policy response.

While one economist sees a dissenter on the nine-member rate setting committee calling for an immediate cut, most recent comments point to unanimity.

Officials may try to address the discrepancy between their official forecasts and market expectations. Carney has said they will explore “how best to illustrate” the market “sensitivities.” — Bloomberg

CTA rejects Duty Free appeal of dismissed P156.5-M refund claim

THE Court of Tax Appeals (CTA) rejected the appeal of Duty Free Philippines Corp. following the dismissal by the CTA in division of its tax refund claim worth P156.5 million.

In an eight-page decision dated July 5, the CTA, sitting en banc, affirmed the decision of its second division on May 8, 2018 and July 26, 2018 resolution dismissing the refund claim on the value-added tax it paid on imported alcohol and tobacco in 2014.

The CTA held that under Presidential Decree (PD) No. 242 all disputes and claims solely between government agencies and offices, including government-owned or -controlled corporations, are to be settled administratively by the secretary of justice, solicitor-general, or the Government Corporate Counsel.

The parties to the case are the Bureau of Internal Revenue and Duty Free, an office attached to the Department of Tourism.

“Clearly, the petition involves a dispute solely between a government corporation and another government agency and as such, this Court is bereft of jurisdiction to take cognizance of the case,” the CTA ruled.

Under Section 2 of PD No. 242, all cases involving questions of law should be submitted to the secretary of justice. Section 3 of the decree, meanwhile, states the solicitor-general will adjudicate cases involving mixed questions of law and fact between government departments or offices while the Government Corporate Counsel settles claims between GOCCs or entities served by the Office of the Government Corporate Counsel.

The secretary of justice has jurisdiction over disputes that do not fall under the solicitor-general or Government Corporate Counsel, according to the decree.

The court’s second division also ruled in its decision that a copy of its May 8, 2018 ruling be provided to the secretary of justice.

The decision was written by Associate Justice Cielito N. Mindaro-Grulla. — Vann Marlo M. Villegas

Professional Regulation Commission taps PayMaya for online payment portal

THE PROFESSIONAL Regulation Commission (PRC) has tapped PayMaya Philippines, Inc. to provide an online payment portal.

The mobile wallet arm of PLDT, Inc. said in a statement over the weekend it will begin offering its services to the professional regulator as an alternative payment option for digital transactions.

“PRC has tapped PayMaya to provide an online payment portal that is in line with the government’s thrust to simplify and make public services responsive to the needs of the Filipinos. Through PayMaya’s platform, Filipinos can now pay using their prepaid, credit, and debit cards as well as their mobile numbers linked to their PayMaya e-wallet account,” it said.

Through the partnership, PayMaya is allowing users of the PRC website to access an online checkout page to pay fees for examination, license registration, renewal of PRC cards and other certifications.

Payments may be received from debit, credit or prepaid cards or through a PayMaya e-wallet linked to a mobile number.

“This partnership with PayMaya attests to our commitment to make access to PRC services easier, more convenient, and faster for every professional,” PRC Chairman Teofilo S. Pilando Jr. was quoted as saying in the statement.

For his part, PayMaya Founder and Chief Executive Officer Orlando B. Vea said the partnership is a positive step towards helping the government digitalize operations.

“This is very timely as there is an increasing demand for digitalization in the public sector space as government agencies are now automating their processes. We’re proud to be the partner of (PRC) in enabling all kinds of digital payment acceptance that will bring ease to the Filipino people and will enhance operational efficiencies in the government,” he was quoted as saying.

PayMaya is managed by Voyager Innovations, Inc., the digital arm of PLDT backed by China’s Tencent Holdings Ltd.; US-based Kohlberg Kravis Roberts & Co. (KKR); International Finance Corp. (IFC) and IFC Emerging Asia Fund.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

NGOs call for more aggressive moves to adopt renewable energy

CONSUMER groups said the Department of Energy’s (DoE) plans for renewable energy (RE) need to be reviewed to ensure consistency with the objective of providing competitive rates, adding that the DoE must move more decisively to wean the country away from coal power.

Laban Konsyumer Inc. (LKI) said over the weekend that it was “cautious” on plans by the Energy department to set a “green” rate for renewable energy players.

LKI President Victorio Mario A. Dimagiba was referring to the DoE’s plan to set a ceiling price for new renewable energy firms to attract investors and promote competition in the sub-sector.

“[W]e must focus on what the rate impact will be. DoE should show that there is no subsidy for RE under their proposal. Hopefully this is not an innovation of the Feed-in-Tariff and FIT Allowance power rate scheme, which the consumer group had consistently opposed,” he said in a statement.

Mr. Dimagiba said the DoE should conduct a public consultation on its proposal, adding that the agency already has rules calling for a competitive selection process (CSP).

“There is already CSP, and that is why CSP is put in place. CSP is there to ensure lower rates so now we are questioning the objective of the green rate,” he said.

Separately, Murang Kuryente, which advocates for cleaner and cheaper power sources, said the DoE’s stance on renewable energy does not go far enough in steering the power mix away from coal.

In a statement during the weekend, it noted that although DoE was “encouraged” by President Rodrigo R. Duterte’s favoring renewable energy over coal-fired power plants, “energy security also requires diversification beyond RE.”

In a belated reaction to the President’s State of the Nation Address, the DoE said on Thursday that power plants fueled by liquefied natural gas (LNG) and coal are needed in the transition towards more RE.

“So long as coal remains a fixture in the country’s energy mix, consumers will continue to be gouged by electric companies and hit further with climate change and health issues. There is no transition needed, except to bring RE power plants online and deactivating coal power plants. To do anything otherwise is to deceive both consumers and the President,” said Gerard C. Arances, Murang Kuryente spokesperson.

He said his group was “very wary” of the transition period because the power plants in the pipeline “all slated to operate at least 20 years into the future.”

He questioned why it was difficult for Energy Secretary Alfonso G. Cusi to obey the President, who gave the “marching orders.”

“Secretary Cusi, in creating space for coal, is being insubordinate, at the cost of money and health to the Filipino energy consumer,” Mr. Arances said. — Victor V. Saulon

Isuzu announces landmark PUV-X program

By Manny N. de los Reyes

ISUZU Philippines Corp. (IPC) unveiled its PUV-X program that provides the optimum “Isuzu Advantage” for its public utility vehicle (PUV) stakeholders and users at the recently concluded Philippine Bus & Truck 2019 Expo held over the weekend at the SMX Convention Center, Mall of Asia Complex in Pasay City.

IPC discussed the PUV-X program in detail during the Truckers Forum on July 25 and 26.

IPC’s presentation was a key portion during the 4th Transport Cooperative National Congress, an annual event spearheaded by the National Federation of Transport Cooperatives (NFTC-BKKPPI). Held within the Philippines Bus & Trucks 2019, the Congress gathers inputs from the transportation cooperatives sector to help formulate the needed programs, projects and activities to further update and develop these sectors.

The PUV-X Program enumerates Isuzu’s 10-Point Advantage: 1) Isuzu’s renowned reliability, durability and efficiency; 2) experienced body builders; 3) accredited accessories suppliers; 4) an unmatched 3 years or 150,000-km warranty; 5) nationwide dealership network of 43 outlets and counting; 6) Expert Truck Executives (Truck Elites) to help customers; 7) nationwide parts availability, competent and trained service technicians, technical assistance from Japanese and Filipino engineers, and Isuzu Service Medic vans for roadside assistance anytime; 8) driver and mechanic trainings; 9) extensive fleet management system; and 10) all-around customer assistance.

To aid in the discussion, NLR77 Class 2 PUV and NLR85 ref van were displayed at IPC’s booth. Test drives of the Isuzu PUVs used by the Senate Employees Transport Service Cooperative (SETSCO) were offered during the two days. The SETSCO shuttle also provided free rides to event participants within the Mall of Asia complex.

The annual PhilBus & Truck Show is recognized by the industry as the leading international bus, truck and commercial vehicle exhibition, a business-to-business trade show that prides itself in delivering top-quality trade buyers and decision makers.

By working closely with key trade associations, the expo brings together bus, trucks and commercial vehicle operators, mining and construction companies, leasing and logistics companies, manufacturers, trading, parts and service and repair workshops to see and get updated on the latest range of buses, trucks and commercial vehicles.

French region suspends harvest amid heat wave

PARIS — Farmers have been ordered to stop harvesting in France’s second largest grain producing department Oise after hundreds of hectares of fields caught fire during an intense heat wave.

At least one farmer was killed during when his harvester became engulfed in one inferno, local media reported. Harvesting is in full swing in France, the European Union’s largest grain producer and exporter, where searing temperatures this week broke records in many parts of northern France and elsewhere in western Europe.

Local authorities put an indefinite suspension on threshing in the whole of the Oise department on Thursday, citing the risk of fires and risk to the local population.

Oise is the fifth largest producing department of soft wheat in France, the main grain currently being harvested, farm ministry data showed.

It was the first time ever the authorities have ordered a halt to the harvest in Oise, FNSEA, France’s largest farm union, said.

More than 500 hectares of land caught fire on Tuesday alone in the department, a record, local fire authorities said on Twitter. Several firemen were hurt while trying to put out the fires.

Oise was one of 20 administrative departments this week placed under ‘red alert’ — the highest warning level — in northern France by state forecaster Meteo France. By Friday this had been downgraded to ‘yellow,’ the third highest level of alert. — Reuters

The edgy jet-setter

DARK and bold colors of rock ‘n’ roll are in season once again with the launch of Longchamp’s winter/fall 2019 collection.

For Longchamp creative director Sophie Delafontaine’s second show at New York Fashion Week in February, she focused on the traveler’s free-spirited energy with the La Voyageuse line.

In conjunction with the brand’s 70th year, Ms. Delafontaine also introduced “LGP,” the new signature logo which is inspired by 1920s Bauhaus artists and New York’s maze-like grid plan. The new logo is embroidered on several leather pieces such as coats, skirts, dresses, and bags.

Ms. Delafontaine combines the Parisian bohemian style of wavy silk dresses and embroidered tulle or wool gauze pleated skirts with the New Yorker’s urban aesthetic with geometric patterns and animal prints. Such outfits are paired with edgy red, black, and terracotta crossbody and tote bags that are made in patent, leather, velvet, and jacquard.

“The idea was to take the Parisian attitude and silhouettes and mix it with the New York sensibility, which is more urban and graphic,“ Ms. Delafontaine said in an interview with fashion trade journal WWD.

The prices of bags in the La Voyageuse collection range from P32,500 to P128,000. They are exclusively available at Rustan’s Makati, Rustan’s Shangri-La, Rustan’s Cebu and Greenbelt 5. — MAPS

MG named as official global car partner of Liverpool FC

WHAT BEGAN in 2016 as a regional deal has now evolved into an international alliance, as MG and top-flight English football club Liverpool FC have taken their partnership to the global level. This collaboration is expected to deliver mutual brand growth and awareness for both esteemed parties in several key regions around the world.

“Just like the well-known saying goes: ‘one tree does not make a forest’,” says Michael Yang, managing director of SAIC Motor International Business. “We’re always looking for more people and partners to come together to create great things. The joint cooperation between MG and Liverpool FC will surely do this as we create more great moments together and bring more special experiences to fans around the world.”

Currently, MG branding is featured on the LED screens of Anfield Stadium, Liverpool FC’s home pitch, while other perks include first team player access, signed merchandise, and exposure on the football club’s thriving digital platforms. MG has also created limited-edition Liverpool-branded vehicles, launched a TV commercial, and has invited Liverpool FC legends to attend the Shanghai International Motor Show on behalf of the brand. In addition, the partnership looks to launch engaging, fan-centric campaigns in the future, so it’s best to stay tuned for these. Such promotions may include trips to the UK to watch a Liverpool FC match live at Anfield Stadium, and the chance to be part of exclusive player meet-and-greet/autograph signing sessions.

Billy Hogan, managing director and chief commercial officer of Liverpool FC, says: “MG, an iconic car brand with a rich sporting heritage, has been a valued partner of the club for several years and we’re incredibly pleased to not only be renewing this relationship, but also be expanding it on a global scale. As partners, we have brought some incredible opportunities to our fans and chances for them to get closer to the action. I’m looking forward to seeing what else we can achieve now that our focus becomes global.”

Locally, MG Philippines also dabbles in sports partnerships, inking deals with popular college leagues such as the UAAP and NCAA for basketball and volleyball — arguably the two most popular sports in the country today. Clearly, MG recognizes sports as an effective means to strengthen its youthful, passionate brand image. With its numerous international and regional sports partnerships, MG is primed to score big.

Visit www.mgmotor.com.ph for more information about MG Philippines products and services, and follow MG Philippines on social media: OfficialMGPhilippines (Facebook), @mg_philippines (Instagram and Twitter). You may also call the 24/7 MG Philippines hotline at (02) 328-4664 for more inquiries.