The Philippines’ aviation industry has organized its first-ever official presence at the Singapore Airshow, with a new national pavilion at the event. Led by a consortium of organizations with a shared interest in rebuilding the country’s somewhat patchy reputation in the aviation sector, the initiative more specifically promotes opportunities around Clark International Airport, the former U.S. military base located 60 miles north of the capital Manila.
The new Philippine Aviation pavilion in Changi Exhibition Center’s Hall C enjoys the backing of a mix of government and industry groups, including the Philippines Department of Transportation, the country’s Civil Aviation Authority, the Bases Conversion Development Authority, and the Civil Aviation Authority. Berthaphil, a long-standing real estate investor at the airport, is directly involved in the development of the Clark Freeport initiative to draw new companies to the underused site.
Also represented in the new Philippines presence at the show is the U.S.-based National Business Aviation Association. The European Chamber of Commerce for the Southeast Asian country will also exhibit as part of its wider efforts to help make the country’s aviation industry more robust. In partnership with the Asian Business Aviation Association (AsBAA), the group is organizing October's second annual Aviation Summit to address the future of the Philippines aviation industry.
According to Max Motschmann, deputy chair of AsBAA, the aviation sector in the Philippines needs significant nurturing, having struggled with a poor safety and regulatory record that saw it twice demoted to the FAA’s Category 2 safety rating and finding itself on the European Union blacklist.
Motschmann told AIN that the January 2023 episode in which authorities had to completely close the country’s airspace due to technical failures left no room for complacency to put the industry on a firmer foundation. He added that progress in new legislation, for example, will open avenues for foreigners to take majority ownership of air carriers in a move meant to stimulate much-needed inward investment. Other issues he and others say require attention include a shortage of skills in areas such as maintenance, repair, and overhaul (MRO), with many qualified Filipinos opting to emigrate in search of higher incomes.
According to Berthaphil’s president, Peter Herman, Clark International Airport already serves as a fulcrum for investment in a resurgent Philippines aviation sector. With 10,800-foot runways, the airport has plenty of space to offer for applications, including MRO services and air freight, and now wants to promote its hub location within three or four hours of flight time to multiple major Asian cities. High-profile aviation tenants at Clark already include the following: Philippine Airlines, SIA Engineering, Cebu Pacific, Asiana Airlines, Qatar Airways, FedEx, UPS, and business aviation services group Metrojet.
The Clark Freeport can offer aviation companies incentives to settle such as a seven-year income tax holiday, with the introduction of a tax rate of just five percent after that period and tax-free imports and exports. Berthaphil manages a 10-hectare site at the airfield and has space available for new tenants.