Showing posts with label NAIA. Show all posts
Showing posts with label NAIA. Show all posts

Wednesday, December 09, 2015

BWorld 30, Tourism and airport transfer at NAIA

* This is my article in BusinessWorld last December 03, 2015.


Tourism provides income and creates jobs for many economies in the world. Singapore, for instance, attracts foreign visitors two times its population size while Hong Kong gets visitors four times the number of its residents.

The Philippines, being detached from the Asian mainland and an archipelago, does not get enough foreign visitors compared to its neighbors in the region. Thus, while one can take land transportation from Thailand to Cambodia, Laos, and Vietnam, or from Malaysia to Singapore, it cannot be done in the Philippines. One needs to fly from Manila to other exotic islands and famous beach resorts like Boracay, Bohol, Cebu, Palawan, Davao and so on.

Nonetheless, there is consistent growth in the Philippine tourism industry, attracting nearly 5 million foreign visitors in 2014. (See Table 1)


In terms of spending by foreign visitors and returning Filipinos already based abroad, the Philippines received nearly $4.8 billion in 2014. It is not as big as what Malaysia, Thailand, Singapore and other neighbors receive but it is twice what the country earned a decade ago. (See Table 2)



Since we aim to attract more foreign visitors and guests, it is important that infrastructure and logistical support are simple and provide convenience to our visitors and returning Filipinos, especially frequent travellers.

The airport transfer at the Ninoy Aquino International Airport (NAIA) to different destinations is generally very inconvenient and time consuming, especially with the on-going construction of skyways near and around the four terminals.

Take the case of VJ, a Filipino expat for most of his professional life who has been living in Singapore for three years now. His work takes him to the entire Southeast Asian region, traveling at least 25% of his time. He can fill one passport with stamps in an average of 1.5-2 years.

VJ flies from Singapore to Manila once or twice a month, both for work and personal travel. At NAIA, he would normally take the yellow airport taxi, whose rate is higher than regular taxis. Despite forking out extra for the same service, VJ prefers the yellow cabs since the cars are in better shape and the drivers are more professional.

Recently, the queue for the yellow cab has been longer than usual, taking passengers one and a half hours before they get a ride.

Another option is to take the “Bayan ko” flat rate white cabs. They cost more but at least the queue is more manageable, that is, if cars are around. Typically, a trip from NAIA3 to Ortigas for a yellow cab is around P275 and around double that amount for the white, flat rate taxi.

With the frequent heavy traffic around the airport, even queueing to get white cabs takes 30-45 minutes.

Last Nov. 6 when VJ flew back home, he was ready to take the white cab but saw that the line was extended, thinking that it would take him one and a half hours to get a ride.

One lady asked him if he wanted a quick ride to Ortigas, it would cost him P1,550, triple the price of the more expensive white, flat-rate cabs.

Another lady approached him and offered a ride to the same destination for P1,250. Because he was very tired, he took the bait.

The lady took him to Bay 1 of Terminal 3 and a white sport utility vehicle hurriedly picked him up. An airport policeman or traffic enforcer later hailed the vehicle but they were let go after a quick conversation with the driver. The driver told VJ that the policeman is the father of one of the female barkers. The driver then stopped and talked to one of the barkers, telling her that he will “take care” of the enforcer later or words to that effect.

Expensive rides, bad experiences at airport transfer

VJ is familiar with all the other airports in Southeast Asia and swears that they are devoid of this kind of taxi scam. He tried Uber before with good experience but for some reason, its signal is weak in NAIA3, or they may have been blocked, or Uber cars refuse to ply NAIA3.

Among the quick and convenient airport transfer for passengers would be different aircon buses or vans that will take passengers from terminals 1-3 to Makati, Ortigas, Cubao, Manila, Alabang, and so on. Passengers can get off at major hotels or take the ordinary taxi from those business districts. This will significantly reduce the number of cars that go in and out of the airport and hence, smoothen traffic flow.

If complicated, politicized, and bureaucratic franchising system is not a factor, private players can easily field these buses or vans and give faster and cheaper transportation for the passengers. But there could be heavy politics and opposition lobbying at the Land Transport and Franchising Regulatory Board and the Manila International Airport Authority as this new scheme will adversely affect the taxi duopoly (yellow and white/flat rate) and the third, “taxidap” scheme at the airport.

If this taxi duopoly plus taxidap scheme are kept for a long time, then the Philippines will not get more foreign visitors as these horrendous experience will be factored in by the tourists. It is safe to assume that Cambodia and Myanmar will overtake the Philippines in attracting more tourists by 2016 (see Table 1 again), if not this year.

Bienvenido S. Oplas, Jr. heads Minimal Government Thinkers, Inc., and is a Fellow of the South East Asia Network for Development (SEANET).
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See also:
BWorld 26, IPRI 2015 in APEC economies, November 19, 2015 

Friday, November 06, 2015

Weekend Fun 59, Laglag bala extortion at PH airports

The "tanim bala", "laglag bala" or bullet-planting scandal, for harassment and extortion of departing passengers at the NAIA/Manila and some provincial airports in the country continues until this week.

This and other photos and memes below are products of Filipinos' creativity to portray government inefficiency. All of these I got from friends' fb updates + those shown in  the web.

Shameful stories. The government should be very ashamed of this, but DOTC and airport officials appeared less worried, or not even ashamed. Kapal muks.

From a friend, Aiken: Bullets are not allowed on board the plane so upon CONFISCATION AND NECESSARY DOCUMENTATION, passengers should be allowed to board...BUT their names be flagged for investigation. Bullets should be treated like scissors, knives, water, i believe...unless the person carrying them is flagged as terrorist.


From another friend, Butch A.: What a bunch of clowns and buffoons we have running operations at NAIA, the Philippines' flagship international airport. Surrealistically, the Philippine President and his appointed government executives who have charge of addressing this bullet-planting extortion scheme still refuse to regard it as the scam that it is. That, despite the 105 reported incidents in this year alone vs. just 14 last year. What's their interpretation of this scheme?
 


From another  friend, Peter P.: Dear Government, make it policy to Confiscate the solitary bullet found, give the alleged carrier of the solitary bullet a stern warning, then let him/her be on her way, PERIOD! Problem solved and syndicate loses their livelihood and your people and visitors no longer have to suffer. Or will you just give me a thousand reasons why this cannot be done?


Palpak Mar, lousy and insensitive response. Laglag boto ka sa 2016.


1 or 2 day/s after, Mar changed tune. Bawi boto ka Mar.


Among the many news reports on  the subject.



Whatta shame, airport security officials and bureaucrats.
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See also:
Weekend Fun 46: Pork Barrel's New Names, August 25, 2013 
Weekend Fun 51: Martilyo Gang Jokes, December 20, 2013 

Weekend Fun 57: Cow Capitalism, November 01, 2014 
Weekend Fun 58: Mugabe Falls, February 08, 2015

Wednesday, February 05, 2014

Plane Delays and NAIA Bureaucracy

* This is my article yesterday in thelobbyist.biz.
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A fried posted last January 27 one of his travel nightmares when he came home from Norway.

Another shameful episode at the Ninoy Aquino International Airport…. our plane was supposed to touch down at 1155AM but we had to go on circles for 3x of 15 minutes each because of the queuing problem in the run way. On the third round the Pilot of flight TG 620 had to make an emergency landing at Clark because our plane almost run out of fuel. I was both angry and ashamed as I heard all the side comments and complaints of the passengers especially those foreigners who just came for a business meeting today but had to miss out. We touched down around 3:00PM after yet another prolonged wait at the Diosdado Macapagal International Airport (Clark) because it took them more than half an hour to give us the go signal to take off after refueling! 

If we have only one runway that is functional how can we accommodate all those planes that come to our airport. How can we attract Tourists and Investors to come if this is the kind of infrastructure we have to offer. Why can't we just give up the Ninoy Aquino International Airport and build a more respectable and world class airport in Clark Field! The area has enough space for several runways….

Sabi nung British na katabi ko magagaling daw ang mga Pinoy professionals na katrabaho niya, nasisira lang daw tayo sa palpak na patakbo ng mga politiko at technocrats sa gobyerno! NAKAKAKAHIYA TALAGA TAYO!

Amen. I can only commiserate. So far I have not experienced a nightmare like that. 

Airlines want to economize fuel cost as much as possible so they can bring down their fares. If an airplane is made to wait for 10 minutes or more in the air, that should be several thousands of pesos of wasted fuel with no additional revenue. But the airline cannot bill the government through NAIA for such additional costs. Govt can only charge lots of taxes and fees on airlines but will not share with additional costs due to govt inefficiency or stupidity.

These days, each airline has to consider 4 factors in their pricing. (a) fare by competitor airlines on same routes, (b) domestic passengers taking the bus and RORO instead, for those going to Bicol, Samar, Leyte, Aklan, Capiz, Antique, Iloilo; (c) taking the boat direct from Manila pier to many provinces in Visayas-Mindanao, or (d) postpone the trip and not fly if the fares are high. So airlines must economize on many things especially fuel to give low fares as possible and attract more passengers. Like low fares to passengers who have no check in baggage. Lighter plane load, fewer fuel consumption. If they check in baggages, extra fee for 10 kg bag, 15 kg bag, 20 kg bag, etc.

Here comes government, occasionally causing wasteful use of fuel by airlines and not assuming responsibility for its inefficiency. Government could have mitigate the additional costs by allowing deductions in landing fee, take off fee, etc. for each minute delaying the landing of an airplane. But govt does not think that way, kabig lang ng kabig, shameless collection of endless taxes and fees.

Another thing. The queuing of airplanes and allowing faster landing and taking off can be done with more modern technology. In HK, I noticed that one runway can accommodate one landing every 30-40 seconds on average, then on the other runway, planes take off every 30-40 seconds too. At NAIA, I notice that queuing is every 45 seconds or more for each landing, another 45 seconds or more for each take off. Maybe there are suppliers of new air navigation technology, but they can’t sell unless they give bribe to NAIA bureaucrats?

Government taxes and fees in the airline sector, passed on to the passengers: Aviation security fee + Excise tax and VAT on fuel products and fuel surcharge + VAT on overall plane ticket. There are also implied taxes in the plane fare like common carriers tax (CCT), gross Philippine billing tax (GPBT), or a franchise tax, on top of corporate income tax, etc. Then there are landing fee, take off fee, baggage handling fee, etc. Airlines pass all of these to passengers.

Plus: travel tax for international passengers (essentially a hold up, highway robbery as there is zero service given to passengers), airport terminal fee (and the airport does not even give free drinking water/fountain, passengers have to pay extra to buy bottled water).

Some big airports abroad also divert plane landings but only during emergencies, like very bad weather, or some risks in landing like one airplane has nearly crash landed and left debris on the runway. But not for reason of "Sorry guys, 12 planes on queue ahead of you, you are #13, so feel free to waste fuel for several minutes, or land at the next non-busy airport."
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See also: 
On airport terminal fees, April 05, 2010 
Plane fare fees, January 14, 2011
Airline oligopoly 1: Philippine AirLines, September 16, 2011 
Migration and Freedom 13: Travel Tax Robbery, December 06, 2011
On Airport Terminal Fee, December 09, 2011 
Tax Cut 12: Removing Taxes on Foreign Airlines, April 02, 2012

Wednesday, January 02, 2013

Transport Econ 7: Encourage Branding, Deregulate Fares of Taxi

* This is my article last week in TL online magazine,
http://thelobbyist.biz/index.php/perspectives/less-government/item/141-taxi-and-corporate-branding
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 The Christmas holiday season is a time of very high demand for taxi relative to their supply. Different complaints by passengers would be heard while complaints by taxi drivers, justified or not, are often not heard. So proposals like rounding off and penalizing if not sending to prison all taxi drivers who choose their passengers. or choose their destinations, or demand higher fare beyond those indicated in their fare metrics, have been circulated.

There are two problems that I see. One, there is insufficient branding of taxi. Unlike airlines, shipping lines and bus lines, there are no clear taxi brands that people can easily find or recommend, except the yellow and “Bayan ko” white airport taxi whose routes are restricted to and from the airports.
Two, fares are uniform and government regulated, there is no leeway to adjust fares to reflect seasons of high and low demand for taxi service.

These problems are interrelated so the general solution is to have more brand competition and less government intervention. How?

One, allow corporate branding of taxis. In buses, Victory bus, Five Star bus, Ceres Liner, others, they have hundreds or even thousands of buses and only one corporate brand. If a bus driver misbehaves and got involved in a road accident, people and government authorities demonize the bus line not just the driver. So the bus companies really discipline and motivate their drivers as their action or misdemeanor directly reflects on the bus company’s brand and credibility.

Two, deregulate taxi fare. Let taxi firms put up expensive cars with expensive but courteous drivers charge expensive fares, especially on high passengers demand season. Airlines have deregulated fares, so at low passenger season, they offer lots of cheap fares promo, and on high passengers season, they jack up their fares to compensate for their low revenues or even loses on low passengers season.

Certain bus lines offer special buses on certain destinations – few and wide seats, long legroom, with toilet, only one stop for meals – and they charge higher fares. The same should apply for taxi companies. More market segmentation will solve many supply problems, and taxi drivers will be motivated to become courteous and efficient so they can be hired someday by these high end taxi companies. The single fare system kills innovation.

On another note, when I was in Hong Kong last November, I saw this cab driver.

 He has four small cell phones to his left, a Samsung galaxy to his right, all are open with five different cords attached to his ear phone. He switches from one cord to another to receive each phone call or make a call, without holding or touching any of those phones, without taking his eyes off the road. Below these four small phones is the sixth gadget, an iPad that he can open anytime.

Fantastic driver. He looks sharp. He talks fast, he switches the cords from one cell phone to another fast, without taking his eyes off the road. So he is able to communicate with his family, friends, or his taxi company anytime anywhere while doing his job. The iPad I think, he will open when he stops to eat or pee, and open his facebook or twitter. I just do not know how common this is among Hong Kong taxi drivers.

One possibility is that he is not an ordinary cab driver, he could be the dispatcher or even the owner of the taxi fleet. In some developed countries where labor is scarce, a taxi company pays any  driver who accepts to take calls and picks up passengers as instructed.

He could be the dispatcher or company owner as he does not appear like an ordinary taxi driver, more of an owner-driver.

In contrast, when we flew back to Manila and got out of NAIA/Manila airport and took the yellow airport taxi, as soon as we got out of the terminal building, the driver said his meter machine is not working and suggested that we will just negotiate the fare when we reach our house. I insisted that he put on the meter reader, he did and it indeed was shabby. When we got home, he produced a receipt from his meter reader, it said P298 for a 6.7 kms distance. His meter reader is tampered, I usually pay only P200 for that short distance on a yellow cab. He later agreed to a P200 fare.

A passenger that feels cheated by the driver of any of the two accredited taxis at the airport, the yellow and white taxi, can complain to NAIA later, but that is waiting for the NAIA authorities to act on the erring driver/s, assuming that they will act on a complaint. A more active, more public-friendly option is to allow passengers to boycott and blacklist a particular brand and go to another brand. In the current duopoly airport taxi system in the country, this is not possible. Passengers simply have to prepare extra cash in case they get cheated, although this does not happen all the time.
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See also:
Transport Econ 3: Brand Competition Among Jeepneys and Buses, August 20, 2010 
Transport Econ 4: Tricycles, November 15, 2010 
Transport Econ 5: Trisikad, June 22, 2011 
Transport Econ 6: More on Office Bus Carpooling, July 09, 2012 
Fat-Free Econ 14: Traffic, Car-pooling and LTFRB, June 21, 2012